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2024 Supreme(SC) 666

SUPREME COURT OF INDIA
HIMA KOHLI, AHSANUDDIN AMANULLAH, JJ.
In Re : Patanjali Ayurved Limited Through Its Managing Director, Acharya Balkrishna And Baba Ramdev
In The Matter Of :
Indian Medical Association And Another – Appellant
Versus
Union Of India And Others – Respondents
Suo Motu Contempt Petition (Civil) No. 4 of 2024 In Writ Petition (Civil) No. 645 of 2022
Decided on : 13-08-2024

Advocates appeared:
For the etitioner(s) : By Courts Motion, AOR
For the Respondent(s): Mr. Mukul Rohatgi, Sr. Adv. Mr. Vipin Sanghi, Sr. Adv. Mr. Balbir Singh, Sr. Adv. Mr. Simranjeet Singh, Adv. Mr. Gautam Talukdar, AOR Mr. Raushal Kumar, Adv. Ms. Apurbaa Dutta, Adv. Ms. Neha Gupta, Adv. Ms. Smita Jain, Adv. Mr. Rishabh Pant, Adv. Mr. Rohit Gandhi, Adv. Mr. Naman Tandon, Adv. Mr. Yajat Gulia, Adv.

IMPORTANT POINTS
(1) Contempt of Court – Power of contempt ought to be exercised with caution, care and sparingly – Contempt proceedings are sui generis inasmuch as Law of Evidence and Code of Criminal Procedure, 1973 are strictly inapplicable – At the same time, procedure adopted during contempt proceedings must be fair and just.
(2) Contempt of Court – “Willful disobedience” – Mere disobedience of an order may not suffice to qualify as a “civil contempt” within meaning of Section 2(b) of Act – Element of willingness is a prerequisite to bring home charge of contempt.
(3) Contempt of Court – There cannot be a justification and an apology – The two things are incompatible and do not go hand-in-hand.

Headnote:

(A) Contempt of Courts Act, 1971 – Section 12 – Constitution of India – Article 129 – Contempt of Court – Power of contempt ought to be exercised with caution, care and sparingly – Contemptuous act complained of must be such that would result in obstruction of justice, adversely affect majesty of law and impact dignity of courts of law – Contempt proceedings are sui generis inasmuch as Law of Evidence and Code of Criminal Procedure, 1973 are strictly inapplicable – At the same time, procedure adopted during contempt proceedings must be fair and just – Principles governing Rule of law must be extended to party against whom contempt proceedings have been initiated – Party must have every opportunity to place its position before Court – Such a party must not be left unheard under any circumstances. (Paras 22 and 23)

(B) Contempt of Courts Act, 1971 – Section 2(b) – Contempt of Court – “Willful disobedience” – Expression ‘willfulness’ signifies deliberate action done with evil intent and bad motive or purpose – It should not be an act which requires or is dependent either wholly or in part, on any act or omission of a third party for compliance – A willful act does not encompass any involuntary or negligent actions – To determine as to whether a person is guilty of civil contempt, it is necessary to first hold that person has willfully disobeyed any judgment, decree, order, writ or any other process of Court – Of equal significance is wilful breach of undertaking given to Court – It has to be seen in facts and circumstances of a case as to whether undertaking is one offered to Court or to other side – Mere disobedience of an order may not suffice to qualify as a “civil contempt” within meaning of Section 2(b) of Act – Element of willingness is a prerequisite to bring home charge within scope of the Act – Tendering a qualified apology is akin to a game of dice – It could either have a positive outcome or a negative result – If contemnor tenders conditional apology and expects luck to play role in outcome of such apology, then he should be ready to face consequence of outright rejection. (Paras 36, 38 and 43)

(C) Contempt of Courts Act, 1971 – Section 12 – Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954 – Sections 3 and 4 – Drugs and Magic Remedies (Objectionable Advertisement) Rules, 1955 – Rule 6 – Suo Motu Contempt Petition – Contemnors have continued to issue misleading advertisements and making derogatory statements in respect of other systems of treatment, in breach of undertaking given to Court – Within a week of order passed by Supreme Court, proposed contemnors published advertisements in daily newspapers, yet again claiming that they had manufactured medicines that could cure diseases like high blood pressure, sugar, asthma, thyroid, arthritis which have been listed in Schedules appended to DMR Act and DMR Rules and are specifically prohibited for advertisement, so as to prevent the public from being misled – There cannot be a justification and an apology – The two things are incompatible and do not go hand-in-hand – Wisdom of tendering an unconditional apology dawned belatedly on proposed contemnors, after this Court rejected first attempt made by them to offer a qualified apology, but their subsequent conduct demonstrates that they have made sincere efforts to purge themselves – Apology accepted and contempt proceedings closed with cautionary observations. (Paras 52, 54, 55, 60, 61 and 62)

Facts of the case:

Indian Medication Association, petitioner in writ petition has invoked Article 32 of Constitution of India for raising a grievance against Patanjali, its Managing Director – Acharya Balkrishna and its primary proponent, Baba Ramdev stating that they have been indulging in a campaign of misinformation and disparagement against modern system of medicine in an orchestrated and systematic manner resulting in misleading common man. IMA has claimed that despite lodging multiple complaints and submitting several representations to Union of India and State Authorities, they have declined to take any concrete action, thus compelling them to approach this Court for relief.

Findings of Court:

Though initial conduct of proposed contemnors prior to their tendering an apology to Court showed that same was in violation of the undertakings given to this Court, subsequent thereto, after they tendered an unqualified apology to this Court, efforts have been made by them to take steps to make amends. This was not only by expressing regret for their conduct on affidavit and in person, but also by taking steps to publicize apology tendered by them through advertisements published prominently in the National and Regional newspapers.

Result : Contempt proceedings closed

Judgement Key Points

Key Points: - Policy on contempt proceedings: power must be exercised with caution, fair procedure, and due process. (!) (!) - Distinction between wilful disobedience of a court order and breach of an undertaking to the court; two separate categories under Section 2(b). (!) (!) - Willful disobedience requires a deliberate act with evil intent; mere disobedience or third-party reliance not enough. (!) (!) - Undertakings given to the court are treated differently from undertakings to a party; breach of court undertakings can constitute contempt. (!) (!) - Qualified apologies are generally not accepted; unconditional/apology should be bona fide, timely, and demonstrably contrite. (!) (!) (!) (!) - Court’s approach to apologies: evaluate conduct before and after apology, severity, and impact on justice; can reject hollow or belated apologies. (!) (!) (!) (!) (!) - Facts: undertaking on 21 Nov 2023 prohibiting advertisements/claims; subsequent advertising and press conference by Patanjali violated that undertaking and DMR Act provisions (Sections 3/4, Rule 6). (!) (!) (!) - Specific advertisements and press conference alleged to violate DMR Act and Rules by claiming cures for diseases listed in Schedule; actions led to contempt notices and proposed contempt against Patanjali, Balkrishna, and Ramdev. (!) (!) (!) - Court ultimately closed contempt proceedings after accepting unconditional apologies and noting steps to remediate (advertisement withdrawal, public apologies, recalls). (!) (!) (!)

Question 1?

How to determine whether conduct constitutes "willful disobedience" or "willful breach of an undertaking" under Section 2(b) of the Contempt of Courts Act, 1971 in the context of undertakings given to the Court?

Question 2?

What is the standard for accepting or rejecting an unconditional/unqualified apology in contempt proceedings, and when can such an apology lead to closure of the matter?

Question 3?

What actions by Patanjali and its officers violated the undertaking and relevant DMR Act provisions, and what steps are required to remedy or recall offending advertisements and statements?


JUDGMENT :

HIMA KOHLI, J.

1. This order shall dispose of the suo motu contempt proceedings initiated by this Court against the proposed contemnors, Patanjali Ayurved Limited1[For short ‘Patanjali’], Acharya Balkrishna, Managing Director of Patanjali and Baba Ramdev. The circumstances leading to initiation of contempt proceedings against the aforesaid parties needs some elucidation.

A. BACKDROP

2. Indian Medication Association2[In short “IMA”], the petitioner in the writ petition3[Writ Petition (Civil) No. 645 of 2022] has invoked Article 32 of the Constitution of India for raising a grievance against Patanjali, its Managing Director – Acharya Balkrishna and its primary proponent, Baba Ramdev stating that they have been indulging in a campaign of misinformation and disparagement against the modern system of medicine in an orchestrated and systematic manner resulting in misleading the common man. IMA has claimed that despite lodging multiple complaints and submitting several representations to the Union of India and the State Authorities, they have declined to take any concrete action, thus compelling them to approach this Court for relief.

B. PROCEEDINGS DATED 21ST NOVEMBER, 2023

3. Notice was issued on the writ petition on 23rd August, 2022. On 21st November, 2023, this Court passed the following order :

    “2. After some arguments were canvassed by counsel afore-noted, on the serious points emanating herein, at the request of the Court, Mr. K.M. Nataraj, learned ASG has very fairly submitted that he may be permitted to obtain instructions, after full and effective consultation with the authorities concerned insofar as checking of incorrect assertions/misrepresentation for various products with regard to their purported medicinal efficacy is concerned, as also the measures which may be put in place for statements released through the media, both electronic and print, presently confined to the Respondent No.5.

    3. Mr. Poovayya, learned senior counsel for the Respondent No.5, on instructions, assures this Court that henceforth there shall not be any violation of any law(s), especially relating to advertising or branding of products manufactured and marketed by it and, further, that no casual statements claiming medicinal efficacy or against any system of medicine will be released to the media in any form. The Respondent No.5 is bound down to such assurance.

    4. It is made clear that the suit(s) pending on issues pertaining inter-se, that is, between the petitioners/other persons and the Respondent No.5 have not been stayed, and shall not be hindered only by reason of the pendency of the present writ petition.” (emphasis added)

C. PROCEEDINGS DATED 27TH FEBRUARY, 2024

4. On 27th February, 2024, learned counsel appearing for IMA drew the attention of this Court to some advertisements published by Patanjali in a newspaper and the transcription of a Press Conference conducted by Baba Ramdev and Acharya Balkrishna on 22nd November, 2023, i.e., on the very next day to passing of the order by this Court on 21st November, 2023 and submitted that despite an assurance given on behalf of Patanjali and recorded in the order passed on 21st November, 2023, the aforesaid parties were continuing to make incorrect assertions and misrepresentations in respect of various products marketed by them by describing the said products as a permanent solution to particular ailments that have been specifically listed in the Schedules appended to the Drugs and Magic Remedies (Objectionable Advertisement) Act, 19544[For short ‘DMR Act, 1954’] and the Drugs and Magic Remedies (Objectionable Advertisement) Rules, 19555[For short ‘DMR Rules, 1955’].

5. In view of the above, this Court expressed a prima facie view that Patanjali had violated the undertaking given to the Court on 21st November, 2023 and issued a notice to show cause to Patanjali and its Managing Director as to why contempt of court proceedings be not issued against them. The relevant extract of the order pas

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