In Brief
This civil appeal challenges an ex parte prohibitory interim order restraining the appellants (defendants) from receiving payment in a commercial suit for coal supply recovery involving Rs. 19.54 crores. The Supreme Court held that while the prohibitory order was aimed at protecting the plaintiff's claim, the more equitable approach would be to require the appellants to furnish a bank guarantee of Rs. 10 crores and solvent security for the balance amount. The appeal was partly allowed; the prohibitory order was set aside upon furnishing of required securities within three months, allowing the suit to proceed on merits without prejudgment.
The lawyer headnote and full judgment text are available to registered users.