IN THE HIGH COURT OF DELHI
Honble Judge: Manmohan, J.
Santosh Kapoor – Appellants
Vs.
Apex Computers P. Ltd. – Respondent
C.R.P. 48/2008 and Cont. Cas(C) 557/2008
Decided On: 28.01.2009
Contempt of Court - Civil Procedure - CPC - Contempt of Courts Act - Negotiable Instruments Act - Succession Act - Contempt of Court Act - [115 CPC, 138 Negotiable Instruments Act, 215 Constitution, 10 Contempt of Courts Act, 12 Contempt of Courts Act] - The judgment discusses the willful breach of undertakings given to the Courts, the legal implications of such breach, and the interpretation of relevant acts and sections. The court also addresses the issue of limitation in filing a contempt petition and provides a detailed analysis of legal precedents to support its decision.
Fact of the Case:
The case involves a dispute between M/s Apex Computers Pvt. Ltd. and Mr. Rajiv Kapoor regarding the recovery of a sum of money. Mr. Rajiv Kapoor repeatedly undertook to settle the dispute but failed to honor his commitments, leading to contempt proceedings against him. The court also dealt with the ownership dispute of a DDA flat and the dismissal of a probate petition claiming ownership based on an alleged will.
Finding of the Court:
The court found Mr. Rajiv Kapoor guilty of willful breach of an undertaking given to the Executing Court, leading to a contempt of court. It also confirmed the attachment order of Mr. Rajiv Kapoor's share in the DDA flat. The court dismissed the probate petition claiming ownership of the flat due to the failure to prove the execution of the alleged will.
Issues: The key issues revolved around the willful breach of undertakings, ownership dispute of the DDA flat, and the dismissal of the probate petition based on an alleged will.
Ratio Decidendi: The court held that the willful breach of an undertaking given to a Court amounts to contempt, and failure to pay the amount undertaken constitutes a continuous wrong. The court also provided a detailed analysis of legal precedents to support its decision on the issue of limitation in filing a contempt petition.
Final Decision: The court found Mr. Rajiv Kapoor guilty of contempt and confirmed the attachment order of his share in the DDA flat. The probate petition claiming ownership of the flat was dismissed due to the failure to prove the execution of the alleged will.
Manmohan, J.
1. By way of the present judgment, I am disposing of a Civil Revision Petition being CRP No. 48/2000 and a Civil Contempt Petition being Cont. Cas.(C) 557/2008 as facts are common to both the proceedings.
2. The CRP No. 48/2008 has been filed under Section 115 of the Code of Civil Procedure, 1908 (hereinafter referred to as CPC), by Mrs. Santosh Kapoor seeking setting aside of the order dated 12th February, 2008 passed by the Additional District Judge, Delhi in RCA No. 16 of 2007 as well as quashing of order dated 11th December, 2006 passed by Civil Judge, Delhi in Execution Case No. M-7/2004, whereby Mrs. Santosh Kapoors objection application to the warrants of attachment with respect to DDA Flat No. C-58C, Shalimar Bagh (hereinafter referred to as DDA flat) was dismissed.
3. Cont. Cas.(C) No. 557/2008 has been filed by the Apex Computers against Mr. Rajiv Kapoor, son of Mrs. Santosh Kapoor under Article 215 of the Constitution and Sections 10 and 12 of the Contempt of Courts Act alleging willful breach by Mr. Rajiv Kapoor of undertakings given to the Courts on 7th December, 2002, 24th February, 2003 and 3rd September, 2004
4. Briefly stated the material facts are that M/s Apex Computers Pvt. Ltd. filed a suit against M/s Welcome Enterprises for recovery of Rs. 1,61,977/- along with pendent lite interest and future interest at the rate of 21% per annum. Since despite service defendant did not enter appearance, defendant was proceeded ex parte and the suit was decreed for a sum of Rs. 1,61,977/- together with interest thereon at the rate of 15 % per annum from the date of filing of the suit till realization. It is pertinent to mention that admittedly Mr. Rajiv Kapoor is the sole proprietor of M/s. Welcome Enterprises and that the suit for recovery was based on dishonoured cheques.
5. In proceedings filed under Section 138 of the Negotiable Instruments Act, 1881, Mr. Rajiv Kapoor on 7th December, 2002 undertook to pay Rs. 1,50,000/- by 3rd February, 2003 to M/s Apex Computers Pvt. Ltd. On such an undertaking being given by Mr. Rajiv Kapoor, M/s Apex Computers Pvt. Ltd. undertook not to execute the civil decree against him.
6. As Mr. Rajiv Kapoor failed to make payment by 3rd February, 2003, the Additional Sessions Judge (in short ASJ) forfeited his bail bond and issued non-bailable warrants against him.
7. On Mr. Rajiv Kapoor furnishing a pay order of Rs. 30,000/-, the ASJ on 24th February, 2003 gave time to Mr. Rajiv Kapoor till 30th September, 2003 to settle the dispute with M/s Apex Computers Pvt. Ltd. in accordance with the order dated 7th December, 2002. In the said order Mr. Rajiv Kapoor undertook to pay interest at the rate of 8% on the outstanding amount of Rs. 1,20,000/- from the said date.
.8. This Court on 26th September, 2003 by an ex parte order allowed a Criminal Misc. (M) Petition filed by Mr. Rajiv Kapoor and set aside the order dated 3rd February, 2003 as well as the subsequent orders passed by the ASJ for procuring the presence of accused Mr. Rajiv Kapoor.
9. However, in execution proceedings filed by M/s Apex Computers Pvt. Ltd., Mr. Rajiv Kapoor on 20th August, 2004 agreed to pay a sum of Rs. 1,70,000/- in full and final settlement of the decree. Mr. Rajiv Kapoor further agreed before the Civil Judge to give post-dated cheques totaling to Rs. 1,70,000/- on the next date of hearing. On such a statement being made by Mr. Rajiv Kapoor, M/s Apex Computers Pvt. Ltd. undertook not to press the criminal proceedings filed by them against Mr. Rajiv Kapoor.
10. In accordance with the aforesaid undertaking, Mr. Rajiv Kapoor furnished twelve post-dated cheques amounting to Rs. 1,70,000/-. In fact, on 3rd September, 2004, Mr. Rajiv Kapoor undertook on solemn oath before the Civil Judge that all the twelve post-dated cheques given by him would be honoured on the respective dates of their encashment and that in case any of the cheques given by me (Rajiv Kapoor) today in court gets dishonoured, I (Raji
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