2016 Supreme(SC) 911

SUPREME COURT OF INDIA
Anil R. Dave, Uday Umesh Lalit, JJ.
Ghanshyam Sarda – Petitioner
Versus
Sashikant Jha, Director, M/s JK Jute Mills Co. Ltd. & Ors. – Respondents
CONTEMPT PETITION (CIVIL) NO.338 OF 2014 IN CIVIL APPEAL NO.10221 OF 2014 with Contempt Petition (C) Nos.24-25 of 2015 in Civil Appeal Nos.10224-10225 of 2014 with Contempt Petition (C) No.375 of 2014 in Civil Appeal No.10223 of 2014 with Contempt Petition (C) No.307 of 2015 in Civil Appeal No.10221 of 2014
Decided On : 18-11-2016

IMPORTANT POINT
The transfer of interest and title in the property passes to the purchaser only after registration of the document of sale and conveyance.

Headnote:(a) Transfer of Property Act, 1882 – Section 54 and section 12, Contempt of Courts Act, 1971 – Expression ‘only’ – Transfer of immovable property becomes valid and effective only by a registered instrument – Instantly sale and conveyance deed executed on 04.04.2013 – Supreme Court directing on that "....capital assets of the company shall not be disposed of without taking permission of this Court" 08.05.2014 – The sale deed registered on 02.07.2014 – Transfer of property becoming effective only on 02.07.2014, i.e., after the order of the Supreme Court – It cannot be contended, in terms of section 54, that transfer was effected before order of the Supreme Court – Neither the interest or title in the property passed to the purchaser by the deed executed on 04.04.2013 – The transfer of interest and title in the property passed to the purchaser only after registration of the document on 02.07.2014, much after the order of the Supreme Court – Ex facie there has been violation of the Order passed by Supreme Court. (Para 17, 18)

       (2012) 1 SCC 656 – Relied upon

       (b) Contempt of Courts Act, 1971 – Section 12 – Company authorising one of its directors to alienate properties of the Company – Said director changing his name and resigning from the company in the changed name – Executing document for sale and conveyance of Company’s property in his old name on strength of authorisation in his old name on 04.04.2013 – Company not informing the Court about execution of the document on 08.05.2014 when restraint orders were passed – Document registered on 02.07.2014 despite restraint order – Clear and deliberate violation of the order of 08.05.2014. (Para 20)

       (c) Contempt of Courts Act, 1971 – Section 12 and Article 142, Constitution of India – Restraint Order of Supreme Court of 08.05.2014 served on registering authorities – Document presented for registration on 30.06.2014 – Advocate General and Government Advocate opining promptly on 01.07.2014 that the document could be registered – Though story appears suspicious, benefit of doubt given in absence of any record of inward and outward letters – However the officials cautioned not to ignore orders of Supreme Court in view of Article 142. (Para 21)

       (d) Contempt of Courts Act, 1971 – Section 12 – Contemnor nos. 14 to 17, and 2 and 3 – Contemnor nos. 14 to 16 not a party to proceedings, nor order of 08.05.2014 served on them – No case made out – Involvement of contemnor no. 17 suspicious, not established – None of the alleged Contemnor Nos.14 to 17 proved to be guilty of violation of Order of 08.05.2014. (Para 22, 23)

       (e) Contempt of Courts Act, 1971 – Section 12 – Company and its Directors Contemnor Nos.1, 4, 5, 6, 7 and 8 found guilty of violating Order of 08.05.2014 – Fine of Rs. 2,000/- imposed on each of them – Transferee not guilty of contempt – It has parted with full consideration money way back in 2013 – BIFR already been directed to consider the matter of transfer of the property – No further orders called for invalidating the registration dated 02.07.2014. (Para 26)

       (1996) 4 SCC 622 – Relied upon

       Facts of the case:

       Contempt Petition (Civil) Nos.338 of 2014 and 375 of 2014 at the instance of Ghanshyam Sarda, appellant in Civil Appeal No.10221 of 2014 and J.K. Jute Mills Mazdoor Ekta Union, appellant in Civil Appeal No.10223 of 2014 seek to highlight disobedience and violation of the Order dated 08.05.2014 passed by the Supreme Court in said Civil Appeals and other connected matters.

       It is alleged in the present contempt petitions that in violation of the Order of 08.05.2014, which was passed during pendency of the aforesaid Appeals, the assets owned by the Company, namely, J.K. Jute Mills Company Ltd. at Saifganj, Katihar, Bihar spread across 1.6 acres of land were sold vide Conveyance Deed dated 02.07.2014 and consequently the persons arrayed as contemnors interfered with due administration of justice.

       Finding of the Court:

       Contemnors Nos.1, 4, 5, 6, 7 and 8 are guilty of violating Order of 08.05.2014.

       Result: Contempt Petition Nos.338 of 2014 and 375 of 2014 closed and disposed of. Contempt Petition Nos.24-25 of 2015 dismissed.