LEGAL PRINCIPLE: APPELLATE PRACTICE – Interlocutory Injunction Pending Appeal – When Court Will Grant Injunction Despite Existence of Bank Guarantee
PRINCIPLE STATEMENT
The unchallengeable fact in this case is that the applicant is and would remain the banker of bankers. On that alone it is not in doubt that the judgment sum would be best kept with it rather than any other bank. But in addition to that is the conclusion already reached that the applicant has arguable grounds of appeal... The question that I must therefore consider is whether the appellate court should be placed in a state of utter helplessness if the res had disappeared when a decision had to be made thereon. In my humble view, I do not think that the Court should ignore or attempt to play down the colossal amount involved in this matter. While the amount involved in a transaction should not necessarily affect the decision of a Court, it must be remembered that the discretionary power of a Court entitles it to consider the peculiar nature of each case. In my respectful view, the facts involved in this matter must compel caution in the exercise of its discretion.
RATIO DECIDENDI (SOURCE)
"The unchallengeable fact in this case is that the applicant is and would remain the banker of bankers. On that alone it is not in doubt that the judgment sum would be best kept with it rather than any other bank. But in addition to that is the conclusion already reached that the applicant has arguable grounds of appeal... The question that I must therefore consider is whether the appellate court should be placed in a state of utter helplessness if the res had disappeared when a decision had to be made thereon. In my humble view, I do not think that the Court should ignore or attempt to play down the colossal amount involved in this matter. While the amount involved in a transaction should not necessarily affect the decision of a Court, it must be remembered that the discretionary power of a Court entitles it to consider the peculiar nature of each case. In my respectful view, the facts involved in this matter must compel caution in the exercise of its discretion."
EXPLANATION / SCOPE
A court may grant an interlocutory injunction pending appeal even where a bank guarantee exists, if the applicant has arguable grounds and the res is substantial. The court should not be placed in utter helplessness if the res disappears. The colossal amount involved compels caution. While the amount should not necessarily affect the decision, the court may consider the peculiar nature of each case. The court balances the adequacy of security (guarantee) against the risk that the appeal would be rendered nugatory. Even with a guarantee, enforcement may cause irreparable harm or complexity. The court’s discretion allows consideration of all circumstances, including the status of the applicant (e.g., central bank) as a secure custodian of funds. The preservation of the res pending appeal is paramount.
