Legal Question in Civil Rights Law in India

stay order

30 owners sold property to X Builder in 1996 which is registered Pvt. Ltd. Company having 3 directors but later dispute arose between the owners and the company

The company filed the suit against the 7 owners not to create third party interest in the property and got stay order against the 7owners in 1999.

Afterward two directors of the X Company with majority entered into the cancellation deed in 2004 with 30 owners including 7owners against whom the stay order has been passed.

Afterward 30 owners sold the property to Y builders in spite of stay order pending (the suit was not withdrawn) in 2004

Now one of the directors of the X Company has filed another (new) suit to set aside the cancellation deed in 2005

He has also requested for contempt of court against 7 owners and made Y builders party in old suit.

The question is what is the status quo of the stay order is in old suit where the old suit stands now.

Whether is it applicable to Y Builders?

Whether will it be treated as contempt of court though two directors with majority have entered into the cancellation deed with owner?


Asked on 3/10/08, 5:30 am

3 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: stay order

Your case needs an extensive study as to formulate a precise advice for you.

Please contact personally.

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Answered on 3/11/08, 4:38 am
Vivek Mapara Vivek N. Mapara

Re: stay order

The question involves plenty of legal propositions, and it requires detail scrurity of records, before giving precise advise.

Now so far so as the status quo is concerned, if the suit is not withdrawn, then status quo order stands as it is, unless the same is modified by the order of court. But at this juncture, i specifically state, that "NO CASE FOR CONTEMPT OF COURT IS MADE OUT", from the averments made by you. So dont be afraid regarding contempt. Moreover the status quo does not bind third party, or party other then the suit.

Moreover, if any transaction is entered between owners and Y, then such transcation is also not rendered void. But it would be subject to final outcome of suit.

Now there is also a question regarding the maintainability of the suit, by the director of X company, and also the validity of compromise entired between the owners and directors of the company. This all has to be scrutinzed in detail.

You can contact me with the case papers, with prior intimation.

Feel free to contact.

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Answered on 3/10/08, 7:38 am

Re: stay order

Query requires extensive study but basing on the assertion it is of the opinion that after cancellation deed suit became infractous but it seems that necessary applications were not moved in this regard.Since old suit was pending hence there is bar in disposing the suit property during pendency of old suit.strictly speaking contempt is not made out but transaction effects the Y builder also.Situation is required to be tackeled tactfully.In case of need contact with details,professional charges are applicable.

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Answered on 3/10/08, 12:59 pm


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