IN THE HIGH COURT AT CALCUTTA
SUBRATA TALUKDAR, SUPRATIM BHATTACHARYA, JJ.
Hindustan Steel Works Construction & Ors. - Appellants
Versus
Shri P.L. Haranadh, Chairman & Ors. - Respondents
CPAN No. 1184 of 2022 in MAT No. 287 of 2021 With CAN 2 of 2022
Decided On : 12-05-2023
Notice of Contempt - Modification and/or clarification of the judgment and order - Whether the terms of the MoU would amount to assignment of contract in favour of Fairfax – Held, Compensation directed shall be payable calculable Order actually paid – Compensation not actually paid by end shall carry a simple interest actually paid till an Arbitral Tribunal constituted by parties passes any other or further Orders – Appropriate Learned Civil Court quantifying amount receivable by it and place a prayer for grant of summary reliefs – Order Accordingly.
JUDGMENT :
Subrata Talukdar, J.
1. This Court has been called upon to decide the above noted contempt application being CPAN 1184 of 2022 arising out of the Judgement and Order dated 11th of March, 2022 passed in the appeal being MAT 287 of 2021 with IA No. CAN 1 of 2021, in the matter of Board of Trustees for the Port of Kolkata and Another vs. Hindustan Steel Works Construction Limited and Others.
2. The alleged contemnors, being the officers of The Board of Trustees for the Port of Kolkata as well as other officers involved with the management of the Haldia Dock Complex (HDC) which operates under the said Board of Trustees for the Port of Kolkata (for short, referred to as KoPT), were bound by the said Judgement and Order dated 11th of March, 2022, inter alia, to act as follows:-
In the above view of the matter the interim arrangement as directed by the Hon'ble Division Bench vide Order dated 2nd June, 2020 in terms of Clause 7.10 Sub-Clause (b) of the Contract shall continue. It will be open to the Arbitral Tribunal to modify the interim order in the event any change in circumstances is brought to its notice by the parties.
M.A.T. 287 of 2021 with I.A. No. CAN 1 of 2021 stand accordingly disposed of.”
3. Although a prayer for stay was subsequently made by Learned Counsel appearing for the KoPT to stay the part of the Judgement and Order pertaining to the interim arrangement (supra), such prayer for stay stood refused.
4. On behalf of the applicants in CPAN 1184 of 2022, it is submitted that upon the failure of KoPT to comply with the direction of the Hon’ble Division Bench (supra), by a Contempt Notice dated 20th October, 2022, it was alleged that steps will be taken before the Hon’ble Court in the event there is further non-compliance of the solemn Order dated 11th of March, 2022 (supra).
5. The Notice of Contempt further, inter alia, stated as follows:-
Only partial setting aside of the Judgement pertaining to "Whether it is Assignment of Contract or Assignment of Services" will be determined by the Arbitral Tribunal.
(b) The Division Bench has made the implementation of Clause 7.10 (b) mandatory in nature by stating the clause 7.10 (b) SHALL CONTINUE in public interest and can be modified by the Arbitral Tribunal.
(c) The Division Bench in MAT 443 of 2020 last para on Page 7 states “Clause 7.10 (b) was in fact invoked by KoPT while terminating the contract vide letter dated 01.01.2020. Purport and intent of the aforesaid clause in the contract is to maintain smooth functioning of port services particularly availability of weighbridges to port users for sometime notwithstanding unilateral termination by KoPT. This aspect of the matter particularly the necessity or continuation of smooth functioning of port services must be borne in mind pending adjudication of disputes between the parties .......... Consequentially order dated 27th April, 2020 is also stayed.”
6. Soon after receipt of the Notice of Contempt dated 20th October, 2022, KoPT filed an application, being CAN 2 of 2022, on the 4th of November, 2022. By the said application the following prayer was made.
The main legal point established in the judgment is that the issue of assignment of the contract or only assignment of works under the contract should be addressed by an arbitral tribunal, and the in....
Contempt proceedings for violation of arbitration orders must follow appropriate remedies under the Arbitration and Conciliation Act; direct petitions to the High Court are not maintainable.
Interim orders cease upon the issuance of final judgments, impacting the enforceability of prior mandates.
A contemnor's alleged actions must demonstrate wilful disobedience of court orders to constitute contempt; mere procedural issues do not suffice.
The rightness or wrongness of the order cannot be urged in contempt proceedings, and the Court cannot clarify the ambiguity in the order or traverse beyond the order while dealing with an application....
An appeal under Section 19 of the Contempt of Courts Act is maintainable only against orders imposing punishment for contempt; non-punitive orders are not appealable.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.