By Saurav Yadav
Published on: December 29, 2023 at 11:26 IST
A stay order in the context of the Code of Civil Procedure (CPC) refers to a judicial order that temporarily suspends Court proceedings or the enforcement of a judgment in a civil case. The purpose of a stay order is to maintain the status quo or prevent any party from taking further action until a specific circumstance is met or until the Court makes a final decision on the issue.
A ‘stay’ or ‘stay order’ is defined in India as the act of rapidly stopping or delaying any legal intention through the Court or legal system in order to maintain a citizen’s rights. It should result in the suspension of a case or, at the very least, the suspension of any specific intent within an ongoing case. In this article we’re going to learn more about the stay order, how and when it is granted to a party, how it is misused and some relevant case laws.
Stay Order
A stay order is a temporary measure to halt or defer the use of a property or land until a verdict is reached. It serves as a protective action taken by the court or legal authorities in India to secure the rights of a citizen. This action may lead to the suspension of an entire case or the suspension of specific proceedings within an ongoing case. In certain instances, a judge may issue a stay order without formal prompting from the opposing party, emphasizing its importance in critical developments.
Temporary Injunction
Order-XXXIX, Rule-1. Cases in which temporary injunction may be granted. – Where in any Suit it is proved by affidavit or otherwise—
(a) that any property in dispute in a suit is in danger of being wasted, damaged or alienated by any party to the suit, or wrongfully sold in execution of a decree, or
(b) that the defendant threatens, or intends, to remove or dispose of his property with a view to defrauding his creditors,
(c) that the defendant threatens to dispossess the plaintiff or otherwise cause injury to the plaintiff in relation to any property in dispute in the suit, the Court may by Order grant a temporary injunction to restrain such act, or make such other Order for the purpose of staying and preventing the wasting, damaging, alienation, sale, removal or disposition of the property or dispossession of the plaintiff, or otherwise causing injury to the plaintiff in relation to any property in dispute in the suit] as the Court thinks fit, until the disposal of the suit or until further orders.
Order-XXXIX, Rule-2. Injunction to restrain repetition or continuance of breach.- (1) In any suit for restraining the defendant from committing a breach of contract or other injury of any kind, whether compensation is claimed in the suit or not, the plaintiff may, at any time after the commencement of the suit, and either before or after judgment, apply to the Court for a temporary injunction to restrain the defendant from committing the breach of contract or injury complained of, or any breach of contract or injury of a like kind arising out of the same contract or relating to the same property or right.
(2) The Court may by Order grant such injunction, on such terms, as to the duration of the injunction, keeping an account, giving security, or otherwise, as the Court thinks fit.
Sub-rules (3) and (4) omitted by Act 104 of 1976, w.e.f. 1-2-1977.
These provisions under Order 39, Rule 1 and 2 grants a temporary injunction in a civil proceeding. A temporary injunction is also a kind of stay in the suit against the respondent preventing him from destroying the suit’s property. Such stay is only provided if the Court is satisfied that there is prima facie case that requires immediate protection with the suit’s property.
Nature of Stay Order
Stay orders can be classified into two types: ‘stay of proceedings’ and ‘stay of execution.’ A stay of proceedings is issued when parallel proceedings may impact each other. On the other hand, a stay of execution involves a complete halt to the enforcement of a judgment, typically in cases where innocence is asserted, leading to a pardon. Stay orders can be conditional or absolute.
When a stay order is granted?
The procedure for obtaining a stay order from the High Court is the same as for any lower Court. Every Court has inherent authority to stay proceedings in any action where the plaintiff is in default or has disobeyed any lawful order of the Court. Any other Court may issue a precept to the High Court, which is then ‘competent to execute such decree to attach any property belonging to the judgment-debtor and specified in the precept’.
Three things must be proved to get a stay order:
- If the stay order is not granted, the appellant may suffer irreparable harm, or the judicial proceedings may become more complicated.
- The application was submitted without undue delay.
- The appellant has given security for the performance of any decree that may eventually be binding on him.
Scenarios Where a Stay Order Applies
Several scenarios warrant the issuance of a stay order:
- Protection of Property in Dispute: When a property is at risk of damage, waste, alienation, or wrongful sale due to ongoing legal proceedings.
- Preventing Fraudulent Actions: If the defendant intends to fraudulently dispose of the property in dispute to defraud creditors.
- Safety Concerns: When the defendant threatens harm to the plaintiff related to the property in dispute.
Effect Of Stay Order
Once there is a stay order granted by the Court, prohibiting the carrying out of a particular activity by the defendant against the property of the suit and he/she are legally stopped from further doing the mentioned activities. However, if despite of the stay order the defendant continues to do so then the plaint can appeal to the Court to either arrest or detain him in the civil prison or to attach the suit property to the receiver appointed by the Court. If the defendant feels the stay order is not justified, he/she can go to the superior Court to set aside the stay order in an appeal. If the stay order is set aside on the defendant’s appeal, he is free to do the said activity again.
Violations of a Stay Order
A stay order is a legal directive aimed at restraining activities related to disputed land or property. If a party violates the stay order by continuing activities like construction or sale, legal action can be taken. Initiating a civil contempt lawsuit in the High Court against the violator is a recourse. Before filing a contempt suit, one can consider to file a police complaint, inform them of the Court orders, and ensure compliance.
Under Which provision stay order is granted
Section 151- Saving of inherent powers of Court. Nothing in this Code shall be deemed to limit or otherwise affect the inherent power of the Court to make such orders as may be necessary for the ends of justice or to prevent abuse of the process of the Court.
The civil Court has inherent power under the section 151 of the code of civil procedure, according to which states that a Court may grant stay order to a suit or proceeding for which there is no such provision present in the code.
In Martin Burn Ltd. v. R.N. Banerjee the Supreme Court has established the presumption of proof in prima facie cases. It does not include complex issues of truth or law that need extensive debate to resolve.
In addition, the Plaintiff must come to court without any dirt on his or her hands. By concealing material facts and evidence, he forfeits his right to injunctive relief, and the other reasons of convenience, irreparable loss, and irreparable injury should be disregarded.
In Prakash Singh v. State of Haryana, The court declared, “The Court has explained that Prima Facie does not entail that a Plaintiff/Applicant must have a complete proven case in his favour that would be victorious in all likelihoods.” It means that the applicant or plaintiff has a claim that can’t be dismissed easily. It draws attention to topics that may be the subject of independent debate.
In Anwar Elahi vs Vinod Misra and Anr, It was decided in that “balance of convenience entails comparable damage or discomfort.” It is possible that the consequences of not issuing the injunction will be higher than those of permitting it. Using this method, the Court will weigh the potential for serious harm to the application, and the injunction is granted to the opposition party.’
Conclusion
Finally, stay orders are an important aspect of the legal system, embodying the delicate balance sought by the judicial system in the face of legal disputes. Stay orders, as a powerful tool derived from the Court’s inherent powers and governed by specific provisions, play a critical role in preserving the status quo and mitigating potential irreparable harm during the course of litigation.