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2020 Supreme(SC) 362

SUPREME COURT OF INDIA
A.M. Khanwilkar, Dinesh Maheshwari, JJ.
Hukum Chand Deswal – Petitioner(s)
Versus
Satish Raj Deswal – Respondent(s)
CONTEMPT PETITION (CIVIL) NO. 591 of 2019 IN SPECIAL LEAVE PETITION (CIVIL) NO. 5350 of 2019
Decided On : 06-05-2020

Advocates Appeared:
For the Petitioner(s):Rajat Sehgal, Advocate
For the Respondent(s):Rajesh Goyal, Advocate

IMPORTANT POINTS
(1) Contempt jurisdiction is a powerful weapon in hands of courts of law but that by itself operates as a string of caution and unless, otherwise satisfied beyond reasonable doubt, it would neither be fair nor reasonable for law courts to exercise jurisdiction under the Act. (2) Contempt Proceedings are quasi-criminal in nature and standard of proof required in these proceedings is beyond all reasonable doubt.

Headnote:

(A) Contempt of Courts Act, 1971 – Sections 12 and 14 – Rules to Regulate Proceedings for Contempt of the Supreme Court, 1975 – Rule 3 – Initiation of contempt proceeding – Contours – In order to punish a contemnor, it has to be established that disobedience of order is wilful – Contempt jurisdiction is a powerful weapon in hands of courts of law but that by itself operates as a string of caution and unless, otherwise satisfied beyond reasonable doubt, it would neither be fair nor reasonable for law courts to exercise jurisdiction under the Act – Proceedings are quasi-criminal in nature and standard of proof required in these proceedings is beyond all reasonable doubt – It would rather be hazardous to impose sentence for contempt on authorities in exercise of contempt jurisdiction on mere probabilities. (Para 16)

(B) Contempt of Courts Act, 1971 – Sections 12 and 14 – Rules to Regulate Proceedings for Contempt of the Supreme Court, 1975 – Rule 3 – Contempt of Court – Alleged wilful disobedience of directions given by Apex Court to pay outstanding dues before vacating suit premises – Respondent vacated suit premises before date prescribed in order of this Court – No damage was caused by respondent to structure in question – Respondent besides tendering unconditional apology has offered explanation pointing out that he was not in arrears and no amount was outstanding or payable to petitioner who had continued to infringe trademark belonging to respondent – Petitioner had moved executing Court to direct respondent to pay double amount of rent as compensation for unauthorised occupation of suit premises – First violation of not filing undertaking within two weeks, as directed, that per se cannot be basis to initiate contempt action against respondent – Special leave petitions were filed by respondent against order dated 28.1.2019 which did not deal with question regarding monthly rent payable by respondent but explicitly left parties to pursue the same before executing Court – Plaintiff/petitioner having acquiesced of that observation of High Court, cannot be allowed to contend to the contrary – It is not a case of intentional violation or wilful disobedience of order passed by this Court to initiate contempt action against the respondent – Instead, it would be open to parties to pursue their claim(s) in execution proceedings or any other proceedings, as may be permissible in law in respect of issue(s) under consideration – In such proceedings, all aspects can be considered by concerned forum/Court on merits in accordance with law – Contempt Petition disposed of with directions. (Paras 12, 13, 17, 19 to 25)

Facts of the Case:

Instant contempt petition has been filed by the original plaintiff (in CS(OS) No. 2041/2013 filed in High Court of Delhi at New Delhi1), under Article 129 of the Constitution of India read with Sections 12 and 14 of the Contempt of Courts Act, 1971 and read with Rule 3 of the Rules to Regulate Proceedings for Contempt of the Supreme Court, 1975 in reference to the order dated 22.2.2019 passed by this Court in SLP(C) Nos. 5147/2019 and 5350/2019. The gravamen of the grievance of the petitioner/original plaintiff is that the respondent [defendant in CS(OS) No. 2041/2013] failed to file undertaking, as also, to pay the outstanding dues before vacating the suit premises and further, caused damage to the property before handing over possession thereof to the petitioner on 22.3.2019. Thus, the respondent committed wilful disobedience of and violated the directions given by this Court vide order dated 22.2.2019.

Findings of the Court:

Taking overall view of the matter, therefore, we decline to precipitate the matter any further against the respondent. Instead, we deem it appropriate to discharge the show cause notice(s) and relegate the parties to such remedies as may be permissible in law to espouse their cause(s)/claim(s) including mentioned in the present contempt petition. All questions in that regard are left open to be decided by the concerned forum/Court appropriately as per law.

Result : Contempt Petition disposed of with directions.

JUDGMENT

A.M. Khanwilkar, J.

1. This contempt petition has been filed by the original plaintiff (in CS(OS) No. 2041/2013 filed in High Court of Delhi at New Delhi) [For short, “the High Court”], under Article 129 of the Constitution of India read with Sections 12 and 14 of the Contempt of Courts Act, 1971 [For short, “the 1971 Act”] and read with Rule 3 of the Rules to Regulate Proceedings for Contempt of the Supreme Court, 1975 [For short, “the 1975 Rules”] in reference to the order dated 22.2.2019 passed by this Court in SLP(C) Nos. 5147/2019 and 5350/2019, which reads thus:

    “We are not inclined to interfere with the Special Leave Petition.

    However, we accede to the request made by the petitioner to grant four weeks’ time to vacate the suit premises. That shall be subject to payment of all the outstanding dues/arrears and filing undertaking before this Court within two weeks’ from today.

    It is made clear that if the premises are not vacated as per the undertaking, it will be viewed sternly.

    The Special Leave Petition is disposed of accordingly. All IAs are also disposed of.”

2. The gravamen of the grievance of the petitioner/original plaintiff is that the respondent [defendant in CS(OS) No. 2041/2013] failed to file undertaking, as also, to pay the outstanding dues before vacating the suit premises and further, caused damage to the property before handing over possession thereof to the petitioner on 22.3.2019. Thus, the respondent committed wilful disobedience of and violated the directions given by this Court vide order dated 22.2.2019.

3. Shorn of unnecessary factual details, suffice it to observe that the petitioner – M/s. Jingle Bell Amusement Park Pvt. Ltd. (represented by its Director – Mr. Hukum Chand Deswal) had filed the aforementioned suit for permanent injunction, possession and for recovery of rent and damages/mesne profits till the recovery of possession in respect of the property bearing No. 41/24, 25, 42/20, 50/1, 51/4 min at Village Alipur, Tehsil­ Delhi, Delhi against the respondent – Sagu Dreamland Pvt. Ltd. (represented by its Managing Director – Mr. Satish Raj Deswal).

4. The respondent/defendant, on the other hand, filed a suit being CS(OS) No. 1592/2014 in the High Court against Splash Island Pvt. Ltd. and its two Directors – Hukum Chand Deswal [present petitioner/original plaintiff in CS(OS) No. 2041/2013] and Karandeep Singh Deswal, seeking permanent injunction restraining them from infringing the trademark acquired by the respondent.

5. CS(OS) No. 2041/2014 was eventually disposed of on 30.6.2015 on the basis of settlement arrived at between the parties on 28.5.2015. As per the said settlement, the respondent had agreed to vacate the suit property on or before 31.12.2017 and handover peaceful and vacant possession thereof to the petitioner herein. The respondent was permitted to take away civil structures and movable fixtures installed by it in the suit property. It could also offer the same to the petitioner for consideration on or before September, 2017. The petitioner would have sole discretion to purchase the same or not. The agreement also records that an amount of Rs.25,00,000/­ (Rupees twenty­five lakhs only) deposited by the respondent with the petitioner as security amount without interest, shall be returned to the respondent after handing over the vacant peaceful possession of the suit property. The parties also agreed for revised monthly rent and the respondent paid the outstanding dues in terms of the said agreement by way of cheque(s) and future rent by way of post­dated cheque(s). The agreement also records that the petitioner herein or any of the Directors of the petitioner shall not use the trademark ­ “SPLASH” in any manner and the cases filed by either of the parties in this regard shall be withdrawn by the concerned party in Delhi or elsewhere. It is also noted in the agreement that breach of terms and conditions of the settlement/agreement/compromise deed by either party, shall entitle


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