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2022 Supreme(Del) 277
IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
ICICI Bank Limited - Appellant
Versus
Rashmi Sharma - Respondent
CM(M) 36 of 2022
Decided On : 12-01-2022
Mr. Dayan Krishnan, Sr. Advocate with Mr. Ripu Daman Bhardwaj, Mr. Deepak Kaushik and Mr. Sanjeev Bakshi, Advocates, for the Appellant; None, for the Respondent.
Contempt proceedings should not be initiated lightly, and subordinate courts cannot assume jurisdiction and issue show cause notice as to why contempt proceedings be not initiated.
Headnote:
Contempt of Court - Commercial Suit - Contempt of Courts Act, 1971 - Sections 10, 15 - The court set aside the show cause notice for initiating criminal contempt proceedings against the plaintiff bank, holding that the plaintiff had duly filed process fee and taken steps for issuance of regular summons to the defendant through ordinary process as well as speed post. The photograph of the summons was sent through WhatsApp only as an additional measure to ensure the appearance of the defendant before the Commercial Court. The court also emphasized that contempt proceedings should not be initiated lightly and that subordinate courts cannot assume jurisdiction and issue show cause notice as to why contempt proceedings be not initiated.
Fact of the Case:
The plaintiff bank filed a commercial suit for recovery against the defendant for defaulting in payments of monthly instalments towards repayment of a car loan. The Commercial Court issued a show cause notice to the plaintiff for overreaching the process of the Court, based on the plaintiff's steps for affecting service on the defendant through ordinary process, speed post, and WhatsApp.
Finding of the Court:
The court found that the plaintiff had taken appropriate steps for service on the defendant and sending the photograph of the summons through WhatsApp was an additional measure to ensure the defendant's appearance before the Commercial Court. The court held that the show cause notice for initiating criminal contempt proceedings against the plaintiff was without jurisdiction and cannot be sustained.
Issues: The issues revolved around the plaintiff's compliance with the process of serving summons to the defendant and the validity of the show cause notice for initiating criminal contempt proceedings against the plaintiff.
Ratio Decidendi: The court emphasized that contempt proceedings should not be initiated lightly and that subordinate courts cannot assume jurisdiction and issue show cause notice as to why contempt proceedings be not initiated. It also highlighted the importance of ensuring proper service on the defendant and the need for caution in exercising jurisdiction in contempt cases.
Final Decision: The petition was allowed, and the impugned order issuing show cause notice for initiating criminal contempt proceedings against the plaintiff was set aside.
ORDER
Amit Bansal, J. - CM No. 2057/2022 (for exemption)
1. Allowed, subject to all just exceptions.
2. The application stands disposed of. CM(M) 36/2022 & CM No. 2056/2022 (for stay)
3. The present petition under Article 227 of the Constitution of India impugns the order dated 2nd December, 2021 passed by the District Judge (Commercial Court)-06, Central District, Tis Hazari Courts, New Delhi (Commercial Court) in CS (COMM.) No. 2857/2021, whereby show cause notice has been directed to be issued to the petitioner Bank (hereinafter 'plaintiff), to be answered and endorsed through the Chairman, as to why criminal contempt should not be initiated against him for overreaching the process of the Court.
4. The facts giving rise to the filing of the commercial suit leading to the present petition are as follows:
(i) The respondent (hereinafter 'defendant') approached the plaintiff for grant of a car loan cum hypothecation scheme of Rs.5,01,000/-for the purchase of a vehicle. The loan documents were executed and the loan was duly sanctioned to the defendant on 21st November, 2019.
(ii) The defendant defaulted in payments of monthly instalments towards repayment of the loan and consequently, issued a notice dated 16th April, 2021 to the defendant to recall the loan facility available to the defendant.
(iii) In August, 2021, the plaintiff filed a commercial suit for recovery against the defendant which was registered as CS (COMM.) No. 2857/2021.
5. The summons were issued in the commercial suit on 16th August, 2021. The relevant part of the order is set out below:
"Issue notice of suit (in the prescribed form viz. the summons for settlement of issues) as well as the accompanying applications with all the annexed documents to the defendants on filing of the process fee by the plaintiff. In case any address of the defendant(s) is of outstation, the ordinary process be sent through the District Judge concerned.
Process be also sent through registered/speed post AD. The sealed covers containing the summons and complete paper book of the case be handed over dasti to the plaintiff/counsel for putting the same in the postal transmission. The original postal receipt(s) along with the downloaded tract report from the site of India Post be placed on record by the plaintiff/counsel on the next date.
In case the plaintiff has any e-mail, fax ID and mobile number (having facility of whatsApp/Gims/Sandes App) of the defendant, defendant be served under Rule 12 of the Delhi Court Services of Process By Courier, FAX and Electronic Mail Service (Civil Proceedings) Rule 2010. The plaintiff shall file the affidavit qua the same.
In terms of Rule 13 plaintiff is directed to place on record a copy of the plaint and- documents in electronic format/scanned images in compliance of Rule 13 for forwarding/annexing/attaching the same with the process. Requisite process fee for sending process by e-mail in compliance of Rule 14 be also filed alongwith the copies as above for onward transmission to Nazarat Branch, Tis Hazari Courts for service through e-mail. "
6. In terms of the aforesaid order passed by the Commercial Court, the plaintiff took steps for affecting service on the defendant through ordinary process as well as speed post, by filing process fee and sealed covers containing the summons and paper book respectively. Pursuant thereto, steps were taken for affecting service on the defendant by ordinary process as well as through speed post. In this regard, reference may be made to the speed post notices issued and the speed post tracking report, as also the report of the Ahlmad, attached to the Commercial Court. In addition to the service through the above modes, the plaintiff also sent the photograph of the summons issued by the Commercial Court to the defendant by means of WhatsApp since the plaintiff had the phone number of the defendant provided in the loan documents.
7. When the matter came up before the Commercial Court on 2ndDecember, 2021, the contention of the
