IN THE HIGH COURT OF DELHI
Neena Bansal Krishna, J.
Charanjeet Kaur Khurana - Appellant
Versus
S Manmohan Singh Oberoi - Respondent
CS(OS) 2126 of 2013
Decided On : 21-11-2022
Contempt - Injunction Orders - CPC, 1908 - [Mortgage] - [Property Dispute] - [Section 151of CPC, 1908, SARFAESI Act, 2002] - The court discussed the violation of injunction orders and the creation of mortgage by the defendant No. 1. The court analyzed the legal provisions of mortgage under Section 58 of the Transfer of Property Act and relevant case laws to conclude that the defendant did not breach the injunction orders by creating a mortgage. The court dismissed the contempt application under Order XXXIX Rule 2A of CPC, 1908.
Fact of the Case:
The plaintiff filed a Suit for Partition, Possession, Rendition of Accounts and Permanent Injunction against the defendant No. 1 and others. The defendant No. 1 mortgaged two properties despite the Injunction Orders granted by the Court. The plaintiff sought contempt proceedings against the defendant No. 1 for willful and contumacious disobedience of the Injunction Orders.
Finding of the Court:
The court found that the defendant No. 1 did not breach the injunction orders by creating a mortgage. The court analyzed the legal provisions of mortgage and relevant case laws to conclude that the defendant did not violate the injunction orders. The court dismissed the contempt application under Order XXXIX Rule 2A of CPC, 1908.
Issues: The main issue was whether the defendant No. 1 breached the injunction orders by creating a mortgage on the properties subject to the Suit.
Ratio Decidendi: The court analyzed the legal provisions of mortgage under Section 58 of the Transfer of Property Act and relevant case laws to determine that the defendant did not breach the injunction orders by creating a mortgage.
Final Decision: The court dismissed the contempt application under Order XXXIX Rule 2A of CPC, 1908, finding that the defendant No. 1 did not willfully and contumaciously disobey the Injunction Orders.
JUDGMENT
Neena Bansal Krishna, J.
I.A.4329/2019 (U/O XXXIX Rule 2A r/w Section 151of CPC, 1908)
1. The present application under Order XXXIX Rule 2A read with Section 151of the Code of Civil Procedure, 1908 (hereinafter referred to as "CPC, 1908") has been filed on behalf of the plaintiff for initiating appropriate proceedings for willful and contumacious disobedience of the Orders of Injunction dated 01st November, 2013 and 12th October, 2017 granted by this Court against the defendants.
2. It is submitted in the application that the present Suit has been filed by the plaintiff against the defendant Nos. 1 to 6, all of whom are the surviving siblings of the plaintiff or the legal representatives of the deceased siblings. The matter was heard for the first time on 01st November, 2013 and after hearing the plaintiff and going through the pleadings, an ex parte interim injunction was granted in favour of the plaintiff and the parties were directed to maintain the status quo in respect of the properties, namely, (i) B-11, Jangpura Extension, New Delhi and (ii) C-46, Okhla Industrial Area, Phase-II, New Delhi.
3. The defendant No. 1 contested the Suit by claiming that the deceased father of the parties had left a Will dated 17th October, 1977. The immoveable properties purchased after the demise of the deceased father was with the exclusive income of the defendant No. 1, though he did not dispute that his sole source of income was from the Partnership Firm, M/s. Jupiter Radios. However, he claimed himself to be sole proprietor of the said Partnership Firm in view of the other partners (3 brothers of the deceased Shri Patwant Singh Oberoi) having retired from the Partnership Firm from time to time.
4. On 12th October, 2017, the Court while hearing the pending applications, including one Application under Order XXXIX Rules 1 and 2 of CPC, 1908 of the defendant No. 1 gave an Undertaking that he shall not sell or transfer the title of immoveable property bearing No. C-45, Okhla Industrial Area, Phase-II, New Delhi without prior permission of this Court. The Injunction Order with respect to three out of the four properties which are the subject matter of the present Suit, was thus granted.
5. During the pendency of the present Suit, an Application bearing No. I.A. 12554/2018 was filed on behalf of the defendant No. 1 under Order VIII Rule 1A of CPC, 1908 seeking exemption from filing the originals of the documents and for conducting the admissions/denial of the documents on production of the original documents. During this application, the plaintiff came to know that the defendant No. 1 has allegedly mortgaged two properties bearing No. C-45 and C-46, Okhla Industrial Area, New Delhi with a Financial Institution, namely, India Bulls Housing Finance Limited i.e., the respondent No. 2 herein. It is claimed that from the averments made by the defendant No. 1 himself in his application, it is clear that he has played a fraud by mortgaging the original title deeds of the two properties which are now with the financial institution, India Bulls Housing Finance Limited. The defendant No. 1 has deliberately not mentioned the date, month and year of the alleged mortgage of the properties and had failed to disclose this fact for the last five years since when the Suit is pending.
6. The plaintiff in his Reply to the application of the defendant No. 1 had sought the production of the mortgaged deeds. However, the defendant No. 1 has continued to be reticent and has deliberately failed to give the details by way of rejoinder. However, the Application bearing No. I.A. 12554/2018 of the defendant No. 1 seeking exemption from producing the original documents was allowed by the Joint Registrar vide Order dated 05th December, 2018, subject to costs of Rs.15,000/- which has not been paid till date. The defendant No. 1, therefore, cannot claim any concession from placing the original documents, since he has failed to deposit the costs.
7. A fresh app
AI
Contempt - Instant contempt petition filed is beyond the period of limitation. The mortgage has been created in the year 2014 whereas the contempt proceedings has been initiated only in the year 2019....
The Court ruled that the definition of 'alienate' does not include 'mortgage', thus determining no contempt occurred.
The main legal point established in the judgment is the significance of honoring undertakings given to the court and the consequences of deliberate non-compliance, emphasizing the importance of willf....
The significance of respecting undertakings given to the court and the consequences of persistent breach of consent decrees in property disputes.
Civil contempt involves willful disobedience of a court order, requiring intentional actions with knowledge of consequences; negligence is not sufficient for contempt.
Redemption of mortgage - Evidence led by applicant during trial is inconsistent with pleadings and documents stated to have been deposited with plaintiff / appellant for creation of equitable mortgag....
A party not involved in a suit cannot be liable for contempt of court orders, as those orders do not bind individuals who are not parties to the litigation.
The Agreement constituted a mortgage by deposit of title deeds under Section 58(f) of the Transfer of Property Act, and the Division Bench erred in concluding otherwise.
The shifting stands of the parties and the validity of the mortgage deed raised doubts about the respondent's defense, leading to the court's conclusion that the suit filed before the civil court was....
(1) Temporary injunction – Court below has to confine itself within parameters as laid down under Order XXXIX Rules 1 and 2 of CPC to see whether temporary relief of injunction can be granted during ....
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.