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2023 Supreme(SC) 837

SUPREME COURT OF INDIA
J.B. Pardiwala, Manoj Misra, JJ.
Balwantbhai Somabhai Bhandari - Appellant
Versus
Hiralal Somabhai Contractor (Deceased) Rep. By Lrs. & Ors. – Respondents
Civil Appeal No. 4955 of 2022, Civil Appeal No. 5041 of 2022 and Civil Appeal No. 4869 of 2023
Decided On : 06-09-2023

Advocates appeared:
For the Appellant(s) : Mr. Mihir Joshi, Sr. Adv. Mr. Shamik Shirishbhai Sanjanwala, AOR Mr. Shantanu Parmar, Adv. Mr. Mukul Rohatgi, Sr. Adv. Mr. Vanshdeep Dalmia, AOR Ms. Natasha Dalmia, Adv. Ms. Devanshi Singh, Adv. Mr. Shivam Pundhir, Adv. Ms. Anisha Jain, Adv. Mr. Soumik Ghosal, AOR
For the Respondent(s): Mr. Arijit Prasad, Sr. Adv. Mr. Nachiket A. Dave, Adv. Mr. Pradhuman Gohil, Adv. Mrs. Taruna Singh Gohil, AOR Ms. Ranu Purohit, Adv. Mr. Alapati Sahithya Krishna, Adv. Ms. Nidhi Mittal, Adv. Mr. Rushabh N. Kapadia, Adv. Mr. Vijayanand Tripathi, Adv.

Headnote:(A) Contempt of Courts Act, 1971 - Section 19(1) - Civil Contempt - Deliberate and wilful disobedience of court order - Appellants held guilty for executing sale deeds despite a clear undertaking not to sell property until the main matter was resolved - Court validates High Court's cancellation of sale transactions as void due to contempt. (Paras 1-117)

(B) Undertaking to Court - Indicates that assurances given by advocates are binding on the party, with violation constituting civil contempt - Materiality of the undertaking emphasized in the context of ongoing litigation. (Paras 4, 12, 74)

(C) Legal Consequences - Transactions in breach of court orders are actionable; the court can declare these void to uphold the rule of law. (Paras 81-83)

(D) Apology - Unconditional apologies may mitigate consequences but not absolve responsibility; given the circumstances, the court deemed acceptance unwarranted. (Paras 99-114)

Table of Content
1. overview of multiple civil appeals with common issues. (Para 1 , 2 , 3)
2. details of the high court's contempt ruling and sale transactions. (Para 6 , 7 , 8 , 9)
3. contempt proceedings initiation and procedural considerations. (Para 10 , 11 , 12)
4. arguments against the findings of contempt and call for dismissal. (Para 31 , 32 , 33)
5. the principles governing contempt jurisdiction. (Para 39 , 40 , 41)
6. conclusion regarding the acceptance of apologies in contempt cases. (Para 112 , 113 , 114)
7. final dismissal of appeals and ordered actions. (Para 117 , 118 , 119)

JUDGMENT :

J. B. PARDIWALA, J.

    “When we speak of the 'rule of law' as a characteristic of our country, (we mean) not only that with us no man is above the law, but (what is a different thing) that here every man, whatever be his rank or condition, is subject to the ordinary law of the realm and amenable to the jurisdiction of the ordinary tribunals. Respect for law and its institutions is the only assurance that can hold a pluralist nation together. Any attempt to achieve solutions to controversies, however, ideologically and emotionally surcharged, not on the basis of law and through judicial institutions, but on the strength of numbers will subvert the fundamental values of our chosen political organisation. It will demolish public faith in the accepted constitutional institutions and weaken people's resolve to solve issues by peaceful means. It will destroy respect for the Rule of Law and the authority of courts and seek to place individual authority and strength of numbers above the wisdom of law.”

    Mohd. Aslam v. Union of India, (1994) 6 SCC 442.

1. Since the issues raised in all the captioned appeals are the same; the parties are also same and the challenge is also to the self-same judgment passed by the High Court of Gujarat those were taken up for hearing analogously and are being disposed of by this common judgment and order.

2. There are in all three appeals before us.

3. The Civil Appeal No. 4955 of 2022 and Civil Appeal No. 5041 of 2022 are statutory appeals under Section 19 (1) of the Contempt of Courts Act, 1971 (for short, ‘the Act 1971’) filed by the contemnors who stood punished by the High Court whereas the Civil Appeal No. 4869 of 2023 is an appeal filed at the instance of the beneficiaries of contemptuous transactions with the permission of this Court. In other words, the appellants of Civil Appeal No. 4869 of 2023 are the purchasers of the suit properties from the contemnors. The beneficiaries of the contemptuous transactions are also before this Court as the High Court while holding the appellants of the two statutory appeals referred to above guilty of contempt for their deliberate and wilful disobedience of the undertaking given to the court also declared the sale transactions to be void.

STATUTORY APPEALS UNDER SECTION 19 OF THE CONTEMPT OF COURTS ACT , 1971

4. The appellants of the two statutory appeals have been held guilty of contempt by the High Court of Gujarat for their deliberate and wilful disobedience of the undertaking given to the concerned Court, which came to be recorded vide order dated 14.10.2015 passed in the Special Civil Application No. 16266 of 2013. The impugned order passed by the High Court holding the appellants guilty of contempt dated 13.07.2022 came to be passed in the Misc. Civil Application No.121 of 2018 filed by the respondents herein in the Special Civil Application No. 16266 of 2013.

5. The operative part of the impugned order passed by the High Court reads thus:

    “ORDER

    (i) We hold that accused Nos. 3.1 to 3.4 and accused No. 4 guilty of Contempt for their deliberate and wilful disobedience of the undertaking given to this Court which came to be recorded by order dated 14.10.2015 passed in Special Civil Application No. 16266 of 2013.

    (ii) We impose cost of Rs. 1,00,000/- (Rupees One Lakh only)


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