Cotton Corporation of India Ltd. v. United Industrial Bank Ltd.

Facts

An injunction was sought to restrain a party from instituting winding-up or other legal proceedings against it in a court. The question was whether a civil court could issue an injunction preventing a person from approaching another court of coordinate or higher jurisdiction. The bar under the Specific Relief Act on injuncting judicial proceedings was directly in issue.

Issues

• Can a court grant a temporary injunction restraining a party from instituting or prosecuting proceedings in another court?
• What is the scope of the statutory bar against injuncting judicial proceedings?

Arguments

The applicant argued an injunction was necessary to prevent oppressive or vexatious litigation and to protect its interests. The respondent contended that the Specific Relief Act expressly bars injunctions restraining persons from prosecuting judicial proceedings, save the limited exception to prevent multiplicity, and no court can restrain access to a court of coordinate or superior jurisdiction.

Held

The Supreme Court held that a court is precluded from granting an injunction restraining any person from instituting or prosecuting proceedings in a court of coordinate or superior jurisdiction. The statutory bar reflects the principle that no court should obstruct another court's exercise of its own jurisdiction and that the right of access to courts cannot be foreclosed by injunction. The only recognised exception is an injunction to restrain proceedings in the same court to prevent multiplicity of proceedings. The injunction sought was therefore impermissible.

Ratio decidendi

By force of the statutory bar (now s. 41(b) SRA), no court can grant an injunction restraining any person from instituting or prosecuting proceedings in a court not subordinate to that from which the injunction is sought; the sole exception is to prevent multiplicity of proceedings within the same court.

Significance

The leading authority interpreting the statutory bar on injuncting judicial proceedings under the Specific Relief Act, defining the limits of injunctive power over access to courts. Consistently followed; reinforces that injunctions cannot be used to stifle legal proceedings before competent courts.

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