Thar Camps Pvt. Ltd. vs M/S. Indus River Cruises Pvt. Ltd. & Ors. on 7 June, 2021
The relevant
portion of the judgment reads as follows: (Raman Iron
Foundry case, SCC pp. 238 & 244, paras 6 & 11)
"6. ... But here the order of interim injunction made by
the learned Judge does not, expressly or by necessary
implication, carry any direction to the appellant to pay
the amounts due to the respondent under other
contracts. It is not only in form but also in substance a
negative injunction. It has no positive content. What it
does is merely to injunct the appellant from
recovering, suo motu, the damages claimed by it from
out of other amounts due to the respondent. It does not
direct that the appellant shall pay such amounts to the
respondent. The appellant can still refuse to pay such
amounts if it thinks it has a valid defence and if the
appellant does so, the only remedy open to the
respondent would be to take measures in an
appropriate forum for recovery of such amounts where
it would be decided whether the appellant is liable to
pay such amounts to the respondent or not. No breach
of the order of interim injunction as such would be
involved in non-payment of such amounts by the
appellant to the respondent. The only thing which the
appellant is interdicted from doing is to make recovery
of its claim for damages by appropriating such
amounts in satisfaction of the claim. That is clearly
within the power of the court under Section 41(b)
because the claim for damages forms the subject-
matter of the arbitration proceedings and the court can
always say that until such claim is adjudicated upon,
the appellant shall be restrained from recovering it by
appropriating other amounts due to the respondent.