Manohar Lal Chopra v. Seth Hiralal — Inherent Powers (S.151) vs Order 39 CPC
Author: Gulzar Hashmi India CASE_TITLE: Manohar Lal Chopra v. Seth Hiralal PRIMARY_KEYWORDS: Section 151 CPC, Order 39, interim injunction SECONDARY_KEYWORDS: anti-suit injunction, inherent powers PUBLISH_DATE: 22 Oct 2025 Slug: manohar-lal-chopra-v-seth-hiralal-air-1962-sc-527
 
  Simple rule: Courts have inherent powers (S.151 CPC), but they should not use them to override a clear rule. For interim injunctions, the code already gives a pathway—Order 39. Use that first. Here, the Supreme Court lifted the anti-suit injunction because both courts had jurisdiction and there was no abuse of process.
S.151 O.39 AIR 1962 SC 527- Can a court grant an interim injunction by using S.151 CPC when Order 39 already covers injunctions?
- Could the Indore court restrain the party from proceeding with the Asansol suit (anti-suit injunction) based on a jurisdiction clause?
- S.151 CPC: Courts have inherent powers to do justice and prevent abuse, but not to defeat express provisions.
- Order 39 CPC: Specific framework for temporary/interim injunctions; should be used where applicable.
- Jurisdiction clauses: They guide forum choice but cannot exclude a court that otherwise has lawful jurisdiction.
Partnership dissolved (1945): “Diamond Industries” closed by deed; disputes to be tried in Indore as per clause.
Suit in Asansol (1948): Appellant seeks share/accounts despite clause.
Suit in Indore (1949): Respondent files, relying on jurisdiction clause; asks for injunction to stop Asansol case.
Indore court: Grants interim injunction restraining Asansol proceedings.
High Court: Upholds injunction, citing the clause and need to avoid parallel suits.
Supreme Court: Allows appeal; sets aside injunction; says use Order 39 rules and don’t misuse S.151.
 
      Appellant
- Asansol court had jurisdiction; filing there was not abuse of process.
- Injunction must be tested under Order 39, not stretched under S.151.
- Anti-suit injunction was unjustified.
Respondent
- Parties chose Indore; parallel Asansol case should be restrained.
- Court can rely on S.151 to prevent multiplicity and hardship.
Held: The Asansol suit was not an abuse; both courts had jurisdiction. The interim injunction issued by the Indore court was set aside. While S.151 exists, it cannot override the specific scheme of Order 39 for interim injunctions.
 
      - Inherent powers (S.151) survive, but should not bypass express provisions like Order 39.
- Anti-suit injunctions require strict grounds; mere existence of a jurisdiction clause is not enough when another competent court is seized.
This case teaches the hierarchy of remedies: use the specific rule first. Reserve S.151 for gaps or emergencies—not as a shortcut around Order 39.
- Order 39 first: Assess temporary injunctions under the specific rules.
- No S.151 override: Inherent powers cannot nullify express provisions.
- Jurisdiction clauses guide, but don’t automatically oust other competent courts.
Mnemonic: “RULE BEFORE POWER.”
- Check: Does a specific CPC rule apply? (Order 39)
- Choose: Use the specific rule for injunctions.
- Only then: If a gap remains, consider S.151.
| Issue | Whether courts can rely on S.151 to grant interim injunctions when Order 39 provides a specific scheme; validity of anti-suit restraint. | 
|---|---|
| Rule | Inherent powers under S.151 exist but cannot override express provisions; Order 39 governs temporary injunctions. | 
| Application | Indore court’s injunction rested on S.151 and a jurisdiction clause; SC held Order 39 controls and both courts had jurisdiction. | 
| Conclusion | Injunction lifted; Asansol suit may proceed; use Order 39 for such reliefs. | 
- Inherent Powers (S.151)
- Residual powers to secure justice and prevent abuse; not a license to ignore specific rules.
- Order 39
- CPC provisions for temporary injunctions and related reliefs.
- Anti-Suit Injunction
- Order restraining a party from proceeding with a case in another court; granted sparingly.
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