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2022 Supreme(Mad) 1025

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. Suresh Kumar, J.
Salem Textiles Limited - Petitioner
Versus
The Deputy General Manager, Industrial Financial Corporation of India Ltd., and ors. – Respondents
Contempt Petition No.2014 of 2022 and Sub Application (OS) No.488 of 2022
Decided On : 03-11-2022

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Akhil Bhansali
For the Respondent: Mr. P. Raghunathan

Misuse of process of law and arraying of Managing Director & Chief Executive Officer as contemnor without willful contempt.

Headnote:

Contempt - Disobedience of Court Orders - W.P.No.9940 of 2021 - 21.04.2021 - Industrial Financial Corporation of India Ltd. - No.142, Nungambakkam High Road, Chennai - 600 034 - IFCI Towers, 61 Nehru Place, New Delhi - 110 019 - [No specific act sections referenced] - The court found that there was no willful contempt on the part of the respondent and that the array of Managing Director & Chief Executive Officer, Industrial Financial Corporation of India Ltd. as contemnor was a gross misuse of process of law by the petitioner. The court imposed a cost/compensation of Rs.25,000 payable by the petitioner to the respondent officer as indicated above within a period of one month from the date of receipt of a copy of this order.

Fact of the Case:

The contempt petition was filed for the alleged disobedience of the orders of the Court dated 21.04.2021 made in W.P.No.9940 of 2021. The petitioner claimed that the order had not been complied with.

Finding of the Court:

The court found that there was no willful contempt on the part of the respondent and that the array of Managing Director & Chief Executive Officer, Industrial Financial Corporation of India Ltd. as contemnor was a gross misuse of process of law by the petitioner. The court imposed a cost/compensation of Rs.25,000 payable by the petitioner to the respondent officer as indicated above within a period of one month from the date of receipt of a copy of this order.

Issues: Alleged disobedience of court orders, arraying of Managing Director & Chief Executive Officer as contemnor, misuse of process of law, compensation for the respondent officer.

Ratio Decidendi: The court held that there was no willful contempt on the part of the respondent and that the array of Managing Director & Chief Executive Officer, Industrial Financial Corporation of India Ltd. as contemnor was a gross misuse of process of law by the petitioner. The court imposed a cost/compensation of Rs.25,000 payable by the petitioner to the respondent officer as indicated above within a period of one month from the date of receipt of a copy of this order.

Final Decision: The Contempt Petition is liable to be closed, and it is closed with the order imposing cost/compensation of Rs.25,000 payable by the petitioner to the respondent officer as indicated above within a period of one month from the date of receipt of a copy of this order. Consequently, the connected sub-application is closed.

ORDER :

This contempt petition has been filed for the alleged disobedience of the orders of this Court dated 21.04.2021 made in W.P.No.9940 of 2021.

2. In the said writ petition, the following order was passed by this Court :

“4. Considering the facts and circumstances of the case and the submissions made on either side, this Court, without expressing any opinion on the merits of the case, directs the third respondent to consider the petitioner’s OTS Offer/representation dated 12.01.2021 and pass appropriate orders, on merits and in accordance with law, after issuing notice to the petitioner and the persons interested in this regard and by affording them an opportunity of personal hearing or virtual hearing, within a period of four weeks from the date of receipt of a copy of this order.”

3. By the said order, a learned Judge of this Court directed only the third respondent in the writ petition to consider the petitioner’s OTS offer/representation dated 12.01.2021 and to pass appropriate orders on merits and in accordance with law after issuing notice to the petitioner and the persons interested in this regard and by affording them an opportunity of personal hearing or virtual hearing within a period of four weeks from the date of receipt of a copy of this order.

4. In fact, the said order was passed by the learned Judge at the admission stage without even hearing the respondents.

5. In the said writ petition, the third respondent was none other than the Deputy General Manager, Industrial Financial Corporation of India Ltd., Continental Chambers, No.142, Nungambakkam High Road, Chennai - 600 034, that means, he is an Officer, who is located in Chennai only.

6. The said order, according to the petitioner, has not been complied with, therefore, the present contempt petition has been filed.

7. When this contempt petition came up for hearing on 21.09.2022, another learned Judge of this Court directed to issue statutory notice returnable by 20.10.2022.

8. It is to be noted that in the contempt petition, the petitioner has arrayed one Mr.Manoj Mittal, Managing Director & Chief Executive Officer, Industrial Financial Corporation of India Ltd., IFCI Towers, 61 Nehru Place, New Delhi - 110 019, as the respondent / contemnor.

9. Though in the cause title, the Deputy General Manager, Industrial Financial Corporation of India Ltd., Continental Chambers, No.142, Nungambakkam High Road, Chennai - 600 034, is stated by the petitioner in the contempt petition, as per the procedure in vogue since the Officer, who allegedly committed contempt, he shall be arrayed as a party by name. Therefore, Mr.Manoj Mittal, Managing Director & Chief Executive Officer, Industrial Financial Corporation of India Ltd., IFCI Towers, 61 Nehru Place, New Delhi - 110 019 has been shown as contemnor as if the third respondent in the original writ petition to whom the direction was given by the learned Judge.

10. Accordingly, the Registry has issued statutory notice to Mr.Manoj Mittal, Managing Director & Chief Executive Officer, Industrial Financial Corporation of India Ltd., IFCI Towers, 61 Nehru Place, New Delhi - 110 019.

11. Pursuant to the said statutory notice, today, when the contempt petition is taken up for hearing, the said officer, viz., Mr.Manoj Mittal, Managing Director & Chief Executive Officer, Industrial Financial Corporation of India Ltd., IFCI Towers, 61 Nehru Place, New Delhi - 110 019, appeared before this Court.

12. Mr.P.Raghunathan, the learned counsel for the respondent, on instructions, would submit that, though a direction was given by this Court in the said order in the writ petition on 21.04.2021 to consider the representation of the petitioner dated 12.01.2021 and pass orders thereon within a time frame, subsequently some more representations have been given more than once by the petitioner on the same plea and every time improved offer has been made by the petitioner as one time settlement. All these representations have collectively been considered an

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