IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN, J.
Central Bank of India - Petitioner
Versus
Suman Chadha & Ors. - Respondents
Cont. Cas. (C) No. 531 of 2015
Decided On : 18-07-2017
CONTEMPT - UNDERTAKING - SARFAESI ACT - [SECTION 13(2), 13(4)] - [RULE 8(6)] - Where the respondents had made a false representation/promise to the Division Bench that they would deposit Rs. 7 crores on or before 30th June, 2015 and believing the said representation/promise, the Division Bench had ordered stay of dispossession. Consequently, this Court is of the opinion that statement of respondent No. 1 under oath in the presence of his counsel as well as affidavit/undertaking of respondent no. 2 constitute undertakings and assurances to the Division Bench which have been breached. Since in the present case the said undertaking has been breached by the respondents, they are guilty of contempt.
Fact of the Case:
The present contempt petition has been filed alleging wilful disobedience and deliberate non-compliance of undertaking dated 08th April, 2015 given by the respondents wherein they undertook to pay Rs. 7 crores i.e. Rs. 2 crores on 30th April, 2015, Rs. 2.5 crores each on 31st May, 2015 and 30th June, 2015.
Finding of the Court:
The Court held that the respondents had made a false representation/promise to the Division Bench that they would deposit Rs. 7 crores on or before 30th June, 2015 and believing the said representation/promise, the Division Bench had ordered stay of dispossession. Consequently, the Court held that statement of respondent No. 1 under oath in the presence of his counsel as well as affidavit/undertaking of respondent no. 2 constitute undertakings and assurances to the Division Bench which have been breached. Since in the present case the said undertaking has been breached by the respondents, they are guilty of contempt.
Issues: Whether the respondents had made a false representation/promise to the Division Bench that they would deposit Rs. 7 crores on or before 30th June, 2015 and believing the said representation/promise, the Division Bench had ordered stay of dispossession.
Ratio Decidendi: The Court held that a contemnor is not in a position of an accused and contempt proceedings are separate and distinct from criminal proceedings. In a criminal trial where a person is accused of an offence there is a Public Prosecutor who prosecutes the case on behalf of the prosecution against the accused, but in contempt proceedings the Court is both the accuser as well as the Judge of the accusation as observed by the Supreme Court in Debarata Bandopadhyay vs. State of West Bengal, AIR 1969 SC 189. In fact, contempt proceeding is sui generis. It has peculiar features which are not found in criminal proceedings. In this view the contemnors do not stand in the position of a person accused of an offence and the Court is free to evolve its own procedure consistent with principles of fair play and natural justice.
Final Decision: The Court sentenced the respondents to three months simple imprisonment along with a fine of Rs. 2,000/- each.
MANMOHAN, J.
1. Present contempt petition has been filed alleging wilful disobedience and deliberate non-compliance of undertaking dated 08th April, 2015 given by the respondents wherein they undertook to pay Rs. 7 crores i.e. Rs. 2 crores on 30th April, 2015, Rs. 2.5 crores each on 31st May, 2015 and 30th June, 2015.
FACTS
2. The relevant facts of the present case are that on 18th January, 2014 the finance facility limit of respondent No. 3-company was enhanced to Rs. 20 crores on execution and signing of requisite loan documents by the respondents and one Ms. Neelam Kohli.
3. While immovable property i.e. property No. 13A, out of Khasra No. 1332/691/442, Gali No. 3, Bhola Nath Nagar known as Kanti Nagar, Shahdara, Delhi-110013 (hereinafter referred to as 'Shahdara property') was mortgaged by one Ms. Neelam Kohli on 28th January, 2015, immovable built up property i.e. Plot No. 90, Block-I, Pocket-VI, Sector-16, Rohini, Delhi-110085 measuring 107.60 sq. yards (hereinafter referred to as 'Rohini property') was mortgaged by respondent No. 2 on 18th March, 2014 for consideration of grant of aforesaid loan facility of Rs. 20 crores.
4. On 24th July, 2014, the loan of the respondents was categorized as a Non Performing Asset due to defaults in repayment.
5. On 18th August, 2014, notice under Section 13(2) of SARFAESI Act was issued to the respondents by petitioner-Bank for recovery of Rs. 28,82,25,942.24 plus interest.
6. On 05th December, 2014, symbolic possession of Rohini and Shahdara properties under Section 13(4) of the SARFAESI Act were taken over by the respondent-Bank.
7. Aggrieved by the said order, respondents filed S.A. No. 367/2014 before the Debts Recovery Tribunal-III, New Delhi (hereinafter referred to as ‘DRT-III’), under Section 17 of the SARFAESI Act. However, the DRTIII declined to grant any interim relief against the physical possession of the aforesaid properties.
8. Appeal being Inward No. 684/2014 was filed by the respondents challenging the order dated 19th December, 2014 passed by DRT-III.
9. Since respondents failed to deposit Rs. 7 crores being twenty five per cent of the notice amount under Section 13(2) and further as respondents requested to withdraw the said appeal, Inward No. 684/2014 was dismissed as withdrawn on 31st March, 2015.
10. On 01st April, 2015, the respondents got an ex-parte stay order from DRT-III, New Delhi in S.A. No. 367/2014 whereby the petitioner was restrained from taking over physical possession of the properties upon deposit of Rs. 5 crores by the respondents within thirty days. The order stipulated that Rs. 2 crores would be deposited by 03rd April, 2015.
11. On 03rd April, 2015, respondent No. 1 on behalf of respondent No. 3 gave a letter to SHO, Police Station Katju Marg, Rohini, Delhi showing his intention to deposit aforesaid amount of Rs. 2 crores by way of four cheques.
12. On 05th and 06th April, 2015, the Receiver was unable to take possession of Rohini property due to resistance by the respondents.
13. Thereafter, the respondents challenged the order dated 01st April, 2015 before this Court by way of W.P. (C) No. 3406/2015 stating that the petitioner and DRT were acting unfairly and unjustly in not accepting their cheques totalling to Rs. 2 crores.
14. During the course of hearing of the writ petition on 08th April, 2015, the counsel for the respondents admitted the liability of the respondents to pay the amount demanded by the petitioner-Bank, but sought time to settle the matter. The respondents offered, by way of a statement under oath, to deposit Rs. 7 crores, i.e. twenty five per cent of the notice amount in three instalments on or before 30th June, 2015. The petitioner-Bank gave its assent to the disposal of the writ petition on the terms offered. Thereafter the Division Bench ordered that the possession of the properties of the respondents shall not be disturbe
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