In Brief
Empee Distilleries, a coal supplier, sued defendants for recovery of Rs. 19.5 crore for unpaid supplies and obtained an ex parte prohibitory order restraining TASMAC from paying the defendants. The defendants challenged this order, arguing it violated Order 37 Rule 5 CPC by imposing a complete prohibition without requiring alternative security. The Supreme Court held that while not setting aside the prohibition entirely, directing defendants to furnish security—specifically a Rs. 10 crore bank guarantee and additional solvent security for the balance—was more equitable. The Court set aside the impugned order on condition of such security and directed the trial court to expeditiously dispose of the suit on merits.
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