Case Overview

• Supreme Court of India judgment delivered by Justices A.M. Khanwilkar and B.R. Gavai on 19-01-2021 in Contempt Petition (Civil) No. 92 of 2008. [judgement_subject][judgement_act_referred]
• Involves family dispute over management of Narang International Hotel Limited (NIHL) between petitioner Rama Narang (father) and respondents Ramesh Narang and Rajesh Narang (sons from first marriage). [1000735950001][1000735950086]
• Arises from prior consent orders of Supreme Court dated 12-12-2001 and 08-01-2002 incorporating "Minutes of Consent Order" for joint management of NIHL by Rama, Ramesh, and Rajesh as directors. [1000735950002][1000735950003] (!) (!) (!) (!) (!)

Background Litigation

• Original disputes settled via family arrangement; suits transferred to Supreme Court under Article 139A and disposed per consent terms, dropping prior contempt proceedings. (!) (!) (!) (!) (!) (!) (!) (!)
• Consent terms mandated joint directorship, no removal of directors, joint management/control, decisions requiring mutual consent of Rama and Ramesh/Rajesh, joint bank operations (esp. >Rs.10 lakhs), and equal remuneration. (!) (!) (!) (!) (!) (!) (!) (!) (!)
• Petitioner filed Contempt Petition (C) No. 148/2003 alleging violations of consent terms by respondents; Supreme Court in 2007 convicted respondents of civil contempt under Section 2(b) Contempt of Courts Act but suspended sentence to avoid company chaos, directing compliance. [1000735950010][1000735950011] (!) (!) (!)

Subsequent Developments

• Respondents filed Company Petition No.47/2008 before Company Law Board (CLB) under Sections 397/398 Companies Act citing petitioner's non-cooperation causing deadlock, unpaid salaries, employee unrest. [1000735950014][1000735950015]
• CLB appointed Justice Arvind V. Savant (Retd.) as Facilitator on 10-04-2008 for operational matters (e.g., employees, suppliers); powers enhanced in 2011 to decide disputes, sign documents if needed. (!) (!) [1000735950026]
• Supreme Court orders (2009-2016) appointed independent directors/consultants (e.g., H.P. Ranina, Habib Rehman) for statutory compliance but explicitly preserved Facilitator's role without interference. [1000735950019][1000735950020][1000735950021][1000735950022][1000735950029] (!)
• CLB rejected petitioner's bid to discharge Facilitator, imposed costs; later replaced facilitators (e.g., H.S. Acharya with Ranina in 2015). [1000735950025][1000735950027] (!) (!) (!)

Petitioner's Contempt Allegations

• Petitioner claimed CLB proceedings and Facilitator orders violated Supreme Court's 2001/2002 consent orders and 2007 contempt judgment by excluding him from management. [1000735950016][1000735950032][1000735950041]
• Alleged repetition of prior contemptuous acts (e.g., unilateral contracts, withholding info, executive appointments). [1000735950008] (!) (!) (!) (!)

Respondents' Defense

• Petitioner's non-cooperation stalled company; invoked CLB legitimately under Sections 397/398/403 for company welfare (3000+ employees). [1000735950049][1000735950035][1000735950036]
• All post-2008 decisions per Facilitator; no veto intended via consent terms; petitioner's son competes with NIHL. [1000735950009][1000735950040]
• Bandra property (40 Pali Hill) is company asset; 30-04-2019 board resolution (per Facilitator) approved sale for financial crisis. [1000735950030] (!) (!)

Supreme Court's Findings and Decision

• No wilful disobedience of Supreme Court orders; respondents' CLB recourse lawful under Companies Act Sections 397/398/403; interim CLB orders binding pending jurisdiction challenge. [1000735950046] (!) (!) [1000735950062][1000735950063][1000735950065][1000735950067][1000735950075][1000735950080]
• Petitioner raised but did not pursue jurisdiction objection; CLB noted prima facie validity under Section 399. [1000735950078] (!)
• Contempt requires proof of deliberate, intentional breach; here, compelling circumstances justified actions for company interests. [1000735950072] (!) [1000735950073] (!) (!) (!)
• Dismissed contempt petition; IA No.87565/2019 (vacate Bandra property) not entertained; parties relegated to NCLT (post-CLB transfer). [1000735950081][1000735950083][1000735950084][1000735950085]