Facts
The Respondents/Plaintiffs filed a suit for specific performance of a Memorandum of Understanding (MOU) dated 09.04.2021, allegedly executed with late Mr. Deepak Rathi (predecessor of the Appellants/Defendants)
Source reference: p. 2, para. 1, 3Per the MOU, Plaintiffs were to construct a motorable road on the Defendants' land for common use at their own expense (approx. ₹80 lakhs), in exchange for which the Defendants were to transfer "Land Parcel 1" to the Plaintiffs
Source reference: p. 3-4, para. 7-8Plaintiffs claim they completed the road and used it until the Defendants began obstructing access
Source reference: p. 4, para. 8-10The Defendants challenged the MOU as forged and fabricated, asserting that Mr. Rathi’s signature was electronically reproduced based on a private forensic report from Truth Labs
Source reference: p. 5, para. 13-14The Trial Court granted an ex-parte interim injunction on 27.03.2023, restraining Defendants from obstructing the road or creating third-party rights
Source reference: p. 8, para. 24The Defendants moved an application under Order XXXIX Rule 4 of the CPC to vacate the injunction, which was dismissed by the Trial Court on 06.10.2025
Source reference: p. 1, para. 1Issues
1. Whether the Trial Court's refusal to vacate the interim injunction under Order XXXIX Rule 4 CPC was legally sound despite allegations of forgery
Source reference: p. 9, para. 23-242. Whether a private forensic report provides sufficient grounds to discard a contract and vacate interim relief at the pre-trial stage
Source reference: p. 9-10, para. 27-283. Whether the "triple test" of prima facie case, balance of convenience, and irreparable loss favored the continuation of the injunction
Source reference: p. 10, para. 31Law Applied
The court primarily applied Order XXXIX Rule 4 of the Code of Civil Procedure (CPC), 1908, which mandates that an injunction may be discharged or vacated only if a party has made a false or misleading statement or if there is a change in circumstances or undue hardship
Source reference: p. 1, 9It followed the "triple test" for interim injunctions: existence of a prima facie case, balance of convenience, and irreparable injury
Source reference: p. 10Regarding forensic evidence, the court relied on the principle from Mariam Fasihuddin v. State of Karnataka, which holds that paid reports from private laboratories are generally unsafe and untrustworthy at the interim stage
Source reference: p. 6-7, para. 20It also considered Section 2(d) of the Indian Contract Act, 1872, regarding the validity of construction costs as consideration
Source reference: p. 7, para. 20Reasoning
The Court found no infirmity in the Trial Court’s exercise of discretion.
Source reference: p. 8, para. 24It noted that the Plaintiffs had acted upon the Agreement by constructing the road, and the Defendants failed to explain why they did not challenge this construction while it was ongoing
Source reference: p. 8, para. 24The court held that the allegation of forgery is a "triable issue" that requires the parties to lead credible evidence at trial; hence, the MOU cannot be discarded at the preliminary stage solely based on a private laboratory report
Source reference: p. 9-10, para. 27-28The court further observed that the Defendants did not demonstrate any "change in circumstances" or "undue hardship" as required by Order XXXIX Rule 4 CPC to warrant a vacation of the stay
Source reference: p. 9, para. 24(v)Procedurally, the court upheld the Trial Court's finding on service, noting that a bald denial of service is insufficient when the address is undisputed
Source reference: p. 9, para. 26Finally, the balance of convenience favored the Plaintiffs because denying access to a road already in use would cause irreparable loss to their easementary rights
Source reference: p. 10, para. 32Holding
The High Court dismissed the appeal and upheld the Trial Court’s order
The Court held that the Defendants failed to establish any grounds for vacating the injunction under Order XXXIX Rule 4 CPC
Source reference: p. 10, para. 32The interim injunction restraining the Defendants from interfering with the road access and creating third-party interests in the suit land remains in force pending the final adjudication of the suit
Source reference: p. 8, 11Original Court PDF
Dhananjay Rathi & Ors.vsGreen Acre Farms Pvt Ltd Through Its Authorized Representative & Ors.
Click to open original judgment
Original judgment, available to read, download and summarize on LawLens.in