LEGAL PRINCIPLE: APPELLATE PRACTICE – Interlocutory Injunction Pending Appeal – Court May Extract Undertaking as to Damages
PRINCIPLE STATEMENT
It is true that the applicant has not given an undertaking as to damages in the event of the prayer for interlocutory injunction being granted. But this Court can extract an undertaking from it.
RATIO DECIDENDI (SOURCE)
"It is true that the applicant has not given an undertaking as to damages in the event of the prayer for interlocutory injunction being granted. But this Court can extract an undertaking from it."
EXPLANATION / SCOPE
Even if an applicant for an interlocutory injunction has not given an undertaking as to damages, the court can extract such an undertaking. The undertaking is a standard condition for injunctive relief—it protects the respondent if the injunction is later found to have been wrongly granted. The court has discretion to require the undertaking as a condition for granting the injunction. The absence of a volunteered undertaking does not bar relief; the court may order it. The undertaking ensures that the applicant compensates the respondent for any loss suffered due to the injunction if the applicant ultimately fails. The court’s power to extract the undertaking is inherent in its equitable jurisdiction. The undertaking is usually required except in exceptional circumstances.
