(1) Subject to the other provisions contained in or referred to by this Chapter, a perpetual injunction may be granted to the plaintiff to prevent the breach of an obligation existing in his favour, whether expressly or by implication.
(2) When any such obligation arises from contract, the court shall be guided by the rules and provisions contained in Chapter II.
(3) When the defendant invades or threatens to invade the plaintiff's right to, or enjoyment of, property, the court may grant a perpetual injunction in the following cases, namely:—
(a) where the defendant is trustee of the property for the plaintiff;
(b) where there exists no standard for ascertaining the actual damage caused, or likely to be caused, by the invasion;
(c) where the invasion is such that compensation in money would not afford adequate relief;
(d) where the injunction is necessary to prevent a multiplicity of judicial proceedings.
Illustrations
(a) A lets certain arable lands to B for farming purposes, and B intends to dig stones for burning lime on the land. A may sue for an injunction to restrain B from doing so.
(b) A, a tenant for life of certain trees, threatens to cut them down. B, the remainderman, may sue for an injunction to restrain A.
(c) A, B and C are partners in trade. A is about to enter into a business competitive with that of the firm. B and C may sue for an injunction to restrain A from so doing.
Legal Commentary & Landmark Judgments: Section 38
Section 38 of the Specific Relief Act, 1963 defines the substantive grounds on which a perpetual injunction may be granted by civil courts to prevent the breach of an obligation or invasion of property rights.
Sub-section (3) governs property rights: where the defendant invades or threatens to invade the plaintiff's right to, or enjoyment of, property, the court may grant a perpetual injunction where: (a) the defendant is a trustee of the property; (b) there exists no standard for ascertaining actual damage; (c) the invasion is such that pecuniary compensation would not afford adequate relief; or (d) the injunction is necessary to prevent a multiplicity of judicial proceedings.
Perpetual injunction under Section 38 is the primary remedy in property possession, easement, trademark infringement, and nuisance disputes. The plaintiff must establish actual, peaceful, and lawful possession on the date of the suit, whereupon the court will restrain the defendant from forcibly interfering without due process of law.