Consequence of transaction in breach of court order

It is well settled principle of law that an authority proceeding with any matter after the prohibitory order passed by the Competent Court, has to be seriously viewed and the parties should be put back to the original position as no one can be permitted to enjoy the fruits of any order which was passed in contravention to the stay order. The said principle is fully explained by the Honourable Supreme Court in the decision reported in 2010 (4) SC 519 Manohar Lal (D) by Lrs v. Ugrasen (D) by Lrs.)

See also: 
2011(3)CTC46 (Madras)
AIR 1967 SC 1386
 AIR 1996 SC 135
AIR 2007 SC 1386

Interim order does not continue automatically

2009 (3) AWC 3115:
2009 (6) ALJ 397
AIR 2007 SC 1411
AIR 2008 SC 2718

Sale of property in violation of Order 39 injunction

Sale is invalid in exercise of power u/s 151 CPC

See  AIR 1996 SC 135, AIR 2008 SC 901: (2008) 8 SCC 348

Arbitration - section 9 - when exercised

Interim injunction 

Court will not grant injunction where court feels that the grant of injunction would frustrate the object of arbitration. AIR 2011 Mad 110

Section 8 of Arbitration Act, 1996 - waiver of arbitration clause

FCI v. Yadav Engieer & Contractor, (1982) 2 SCC 499: "taking any other steps in the proceeding must be confined to taking steps in the proceedings for resolution of the substantial dispute in the suit..." Appearing at interim stage does not mean waiver of arbitration clause. 


Rashtriya Ispat Nigam Limited v. Verma Transport Co. (2006) 7 SCC 275. 

Stamp Duty at Interim Stage

Stamp Duty to be considered at interim stage: KB Jayaram v. Navineethamma, AIR 2003 Kant 241 "court should first require payment of stamp duty and penalty thereon before granting injunction ..."




Stamp Duty not a relevant consideration at interim stage:


Marine Containers, 2002 (104) 1 Bom LR 273
M. Muniswamy v. NPK Mudaliar, ILR 2007 Kar 3271
[Deshmukh Judgement, Bombay High Court]