Interim Injunction on Possessive by Bank: Safeguarder for Borrower

An interim Injunction is a temporary judicial order that prevents a party from taking action until the final court decision. In the field of loan default, it prevents a bank from taking possession of the borrower's property, giving the borrower time to resolve the issue. It protects the borrower's rights while the court examines the case fully, thereby preventing irreversible harm that could occur if the bank's actions were left unchecked.

For borrowers to get an interim injunction, they must provide specific grounds for the temporary relief they need. The following are some of the main factors the court considers:

• Prima Facie Case:  In the prima facie case, the borrower needs to show sufficient evidence to ensure that there is an actual issue that requires judicial intervention. It's important to show that the case is convincing enough to be taken seriously rather than trying to prove everything at once. Here, the borrower can show the bank’s calculation mistake, unfairly treated behaviour or inappropriate procedure; these all can be considered a prima facie case.


• Balance of Convenience:  Irreparable harm describes an injury or damage that is beyond financial repair. A borrower must demonstrate that they will suffer permanent damage if the court refuses to take action to prevent something negative from happening. For example, losing a company or a home might result in serious financial and personal issues that are outside the reach of money. Such injury must be serious and imminent, demonstrating the necessity for the court to act quickly.


• Irreparable harm/loss:   The "balance of convenience" refers to the amount of injury or hardship that each party would experience if the court decided to allow or deny a particular course of action. For example, in order to prevent a bank from seizing a borrower's property, the borrower must demonstrate that losing their home would cause them greater suffering than the bank would experience from having to wait to get their money back. The effect on the borrower's life and stability is balanced against the bank's desire to recover the debt, according to the court. If the borrower's conditions get worse, the court may decide to temporarily halt the bank's seizure of the property.