provided that all disputes arising between the partners were to be referred to arbitration. The application was dismissed on 20th August, 1949.

- Hiralal thereafter brought a civil suit in Indore under Sections 10 and 151 of the CPC to restrain the further progress of the Asansol suit.

- The Indore District Judge granted an interim injunction to restrain Manoharlal from further prosecuting the Asansol suit. Manoharlal appealed to the High Court of the earstwhile state of Madhya Bharat which is now Madhya Pradesh and the appeal was dismissed.

Issues

1. Whether the power of the court could resort to its inherent powers by virtue of Section 151 of the CPC, in a situation where specific provisions governed the grant of interim injunction in the CPC.

2. Whether in the facts and circumstances of the present case, the court was well justified in exercising discretion, while invoking its inherent jurisdiction.

Judgment

- The Court established that the inherent powers of the court, as provided under Section 151 of the CPC, are not limited by the specific provisions of the Code. The Court made it clear that Section 151 of the CPC declares the inherent power of the court to issue orders that are necessary to ensure justice, particularly in cases where the law or procedure is silent or inadequate to resolve a matter.

- The Court stressed that while inherent powers may be exercised in extraordinary cases where the CPC has provided no procedure, such inherent powers cannot be used to circumvent the particular provisions or procedures provided by the Code. Inherent powers must be exercised only when they are absolutely required to avoid a miscarriage of justice or to satisfy the ends of justice.

- The Supreme Court held that jurisdictional issues of the courts involved in the disputes have to be dealt with in the appropriate judicial setup. The Court further held that the authority of the Asansol Court in respect of the subject matter of the dispute cannot be affected by the dissolution deed or by preferences made therein.

- The jurisdiction of the court where the suit was filed, Asansol should not be dismissed simply because the arbitration clause in the partnership deed suggested another forum for dispute resolution.

- It would reflect a careful and cautious approach toward the exercise of inherent powers, emphasizing that the very powers should not work contrary to the specific procedure outlined by statute and they be used only when necessary to promote fairness and justice.