Supreme Court of India

Morgan Stanley Mutual Fund v Kartick Das

(1994) 4 SCC 225; JT 1994 (3) 65419941 min read
The case in brief30-second read
Facts
A consumer forum granted an ex parte interim injunction restraining the allotment of units in a mutual fund's public issue.
Issue
Whether a prospective investor is a consumer, and whether the forum could grant an interim injunction; how ex parte injunctions should be granted.
Held
A prospective investor in a public issue is not a consumer, and the forum then had no power to grant interim injunctions. The Court also set out factors for granting ex parte injunctions: irreparable harm, whether the plaintiff acted promptly, whether the plaintiff acquiesced, good faith in the application, and the balance of convenience.
Principle
Ex parte injunctions are exceptional and must be granted only on the stated considerations.
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Facts

  • A consumer forum granted an ex parte interim injunction restraining the allotment of units in a mutual fund's public issue.

Issue

  1. Whether a prospective investor is a consumer, and whether the forum could grant an interim injunction; how ex parte injunctions should be granted.

Held

  • A prospective investor in a public issue is not a consumer, and the forum then had no power to grant interim injunctions. The Court also set out factors for granting ex parte injunctions: irreparable harm, whether the plaintiff acted promptly, whether the plaintiff acquiesced, good faith in the application, and the balance of convenience.

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Citation

Morgan Stanley Mutual Fund v Kartick Das (1994) 4 SCC 225; JT 1994 (3) 654

Reported: https://indiankanoon.org/doc/1120137/. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.