The Apex Court in its recent judgment of State of Mizoram and Ors. etc. vs. M/S Pooja Fortune Private Limited & etc. held that while granting a stay three aspects must be considered viz:
The bench comprising of Justices Deepak Gupta and Aniruddha Bose were considering the appeal filed by Mizoram Government against the High Court order which directed it to keep in abeyance all paper lottery draws pursuant to expression of interest dated 04.06.2019 pending final outcome of the writ petition.
The bench granting stay while taking note of the three aspects observed that:
“Even assuming for the sake of argument that the respondent no.1 writ petitioner has a prima facie case on the merits, there is no balance of convenience in its favour. The respondent no. 1 writ petitioner was running a paper lottery in State of Mizoram with the same draw machine and with the same drawbacks in violation of the law which it now claims in its favour. There is no way this loss can be compensated by the respondent no.1 writ petitioner since it sis unwilling to finish any bank guarantee in this regard.”
The bench further noted that these three aspects are to be considered while grantiong onjunction also. The same was observed in the case of Kashi Math Samsthan & Anr vs Srimad Sudhindra Thirtha Swamy that:
“ In an order of injunction, the party who seeks for grant of such injunction has to prove that he has made out a prima facie case to go for trial, the balance of convenience is also in his favour and he will suffer irreaparable loss and injury if injunction is not granted. But it is equally well settled that when a party fails to prove a prima facie case to go for trial, question of considering the balance of convenience or irreparable loss and injury to the party concerned would not be material at all, that is to say, if that party fail to prove prima facie case to go for trial, it is not open to the court to grant injunction in his favour even if, he has made out a case of balance of inconvenience being in his favour and would suffer irreparable loss and injury if no injunction order is granted
The crux of the present matter the SC explain that the while granting a stay three aspects must be considered viz Balance of Convenience, Irreparable harm or injury, Prima facie case. Therefore, the copy of the judgment is attached herewith.