Facts of the Case

This appeal arose out of a partnership dispute between two brothers, Ravindra Kumar Chopra (appellant) and Snehlata Chopra (respondent), concerning the affairs of partnership firms M/s. Ravindra Kumar Chopra and M/s. Gouranga Rubber House, including an Agartala branch.

Snehlata Chopra had earlier obtained interim orders from a Single Judge of the Calcutta High Court on an application under Section 9 of the Arbitration and Conciliation Act, 1996, based on allegations that the appellant was running a competing business and misusing partnership assets. The interim order (dated 8th May, 2023) granted several prayers, including injunctions restraining the appellant from operating certain bank accounts, from carrying on a competing business, and directing disclosure of accounts and login credentials for the firm's Income Tax and GST Department portal accounts.

The appellant challenged this order before the Appellate Division, contending that his counsel before the Single Judge had not been properly instructed and that the interlocutory application was substantially allowed without giving him an opportunity to file affidavits in opposition.

By the time the appeal was heard on 19th July, 2023 – more than two months after the impugned order – affidavits had reportedly been exchanged and the interim application was ready for hearing before the Single Judge.

Issues Involved

  1. Whether the appellant had been denied a fair opportunity to contest the interim injunction application before the Single Judge, warranting appellate intervention pending a fresh hearing.

Petitioner's Arguments

  • The appellant's counsel before the trial court was not properly informed of the proceedings, and the interlocutory application was virtually allowed without giving him an opportunity to file affidavits, causing prejudice.

Respondent's Arguments

  • The respondent (Snehlata Chopra) denied the allegations of wrongdoing raised against her and maintained that the business of M/s. Gouranga Rubber House was being run by third parties unconnected with her; the interim application was ready for hearing before the Single Judge with affidavits on record.

Court Order / Findings

  • The Division Bench formally admitted the appeal and disposed of it the same day, dispensing with formalities.
  • It directed that the interim application and its specific prayers be considered afresh by the Single Judge after taking into account the appellant's affidavit-in-opposition and hearing him, before deciding whether to continue, vary, or vacate the earlier interim orders.
  • It directed that status quo as of the date of the appellate order be maintained by the parties until altered by the Single Judge, and that no party would face contempt or enforcement proceedings for any alleged violation of the 8th May order in the interim.

Important Clarification

This order does not decide the underlying partnership dispute or validate the earlier direction to hand over GST portal login credentials; it merely restores the case to the Single Judge for a fresh, fully-heard decision on the interim injunction application. It is a procedural, fairness-driven order in a family/commercial partnership dispute, and has no bearing on GST law.

Sections Involved

  • Arbitration and Conciliation Act, 1996 – Section 9 (interim measures)
  • Indian Partnership Act, 1932 – governing the underlying partnership dispute
  • Code of Civil Procedure, 1908 – principles of natural justice in interlocutory proceedings

Decision – In Favour of

The appeal was disposed of on procedural terms favourable to the appellant to the extent that the interim injunctions will now be reconsidered after he is properly heard; the underlying merits of the partnership dispute remain undecided and were left open for the Single Judge.

Case Details

  • Court: High Court at Calcutta, Civil Appellate Jurisdiction, Commercial Division, Original Side
  • Case No.: APO/78/2023, AP/241/2023, IA No.GA/1/2023
  • Coram: Justice I. P. Mukerji and Justice Biswaroop Chowdhury
  • Date: 19th July, 2023

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