IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. KARTHIKEYAN, J.
Jeppiaar Sheela @ Sheela Manoharan - Appellant
Versus
Regeena Jeppiaar & Others - Respondent
Cont. P. No. 1033 of 2022 & Sub. Appln. No. 230 of 2022
Decided On : 01-08-2022
Contempt of Courts Act - Willful Breech of Undertaking - C.S.No.256 of 2018 - MoU - A.Nos.3070 and 3071 of 2020 - Final Decree - Government's Vested Right - Contempt Petition Dismissed
Fact of the Case:
The case involves a dispute among family members over the division of properties and assets following the death of Mr. Jeppiaar. A Memorandum of Understanding (MoU) was recorded by the court on 09.07.2018, but subsequent actions by the parties led to further grievances and legal proceedings. The petitioner filed a Contempt Petition under Section 11 of the Contempt of Courts Act, 1971, alleging willful breach of the MoU by the respondents.
Finding of the Court:
The court found that the petitioner's allegations of contempt were not substantiated. The court emphasized the need for the parties to focus on settling outstanding loans and addressing the Government's vested interest in the properties, rather than engaging in acrimonious litigation. The court dismissed the Contempt Petition, stating that the petitioner had not fulfilled the necessary legal steps and that the contempt allegations were unfounded.
Issues: The issues revolved around the alleged willful breach of the MoU, failure to withdraw previous suits, failure to disclose properties in final decree applications, and the involvement of the Government in claiming a vested right over the properties.
Ratio Decidendi: The court emphasized that contempt cannot be established when legal procedures have not been followed, properties have not been disclosed, and when external factors such as the Government's vested right are involved. The court highlighted the need for parties to focus on resolving financial matters and external claims rather than engaging in acrimonious litigation.
Final Decision: The Contempt Petition was dismissed, and the connected Sub.Appl.No.230 of 2022 was closed.
JUDGMENT
(Prayer: Petition filed under Section 11 of Contempt of Courts Act read with under Article 215 of the Constitution of India, to initiate contempt proceedings against the respondents for their willful breech of undertaking made in C.S.No.256 of 2018 dated 09.07.2018.)
1. Heard arguments for about forty five minutes advanced by Mr.S.Ayyadurai, learned Senior Counsel appearing on behalf of the contempt petitioner.
2. As a matter of fact, statutory notice had not been directed to the respondents, but before issuing statutory notice, by noting dated 15.06.2022, this Court had directed private notice to the respondents and on such notice being received, the learned counsels had entered appearance on behalf of the respondents and counter affidavit have also been filed.
3. This Contempt Petition has been filed stating that there has been willful disobedience of order dated 09.07.2018 in C.S.No.256 of 2018. That particular civil suit had been filed by one of the daughter of Mr.Jeppiaar, who was quite an active individual, both in politics and in business field. He had built up substantial wealth including movable and immovable properties and had also incorporated various private limited companies and established a few educational institutions.
4. Naturally, on his death, the legal representatives namely, his widow and daughters wanted a share in the property and not being satisfied with what had been given to them, the propensity to look into what the other person gained or rather was able to take away was a source of continuous acrimonies relationship among the family members. It was in such circumstances that C.S.No.256 of 2018 had been filed by one of the daughters. The defendants in that particular suit were the mother and other daughters, including the present petitioner who was shown as the 5th defendant. There was also another partnership firm which was impleaded as the 6th defendant and the relief sought in that particular suit was for declaration that the 6th defendant, partnership firm stood dissolved on the death of the partner, Mr.Jeppiaar, who died on 18.06.2016 and for consequential reliefs owing to such dissolution.
5. A Memorandum of Understanding (MoU) dated 25.06.2018 was presented to the Court, which gave an impression that the issues among the plaintiff and the defendants, not only with respect to the dissolution of the 6th defendant, but also with respect to discharge of loans which were mounting and also division of the available properties into five equal parts would be undertaken. That task should be done by all the parties. The said MoU was recorded by this Court on 09.07.2018.
6. The present petitioner, did not accept to such MoU and it was stated by the learned Senior Counsel at that time, that clauses (j) (k) and (l) alone would be binding on her and that she would be abide by those clauses only, and that other clauses would not be binding on her. Taking into consideration that particular representation, the Court proceeded to record the MoU, giving such exception to the present petitioner herein with respect to the majority of clauses except (j) (k) and (l). A decree was also passed in accordance with the MoU. It was genuinely felt that the matters had been come to an amicable end on the filing of the MoU and passing of a decree.
7. But it has since transpired, that it did not do so.
8. The learned Senior Counsel pointed out various terms quite apart from clauses (j) (k) and (l) and was quite agitated over clause (f) under which the mother who filed a suit in O.S.No.179 of 2017 seeking permanent injunction against the petitioner herein not to enter into the educational properties, had agreed to withdraw the said suit, but had not withdrawn the same. It was complained that the mother further crossed the line and filed O.S.No.134 of 2021 against the petitioner herein seeking further permanent injunction restraining the petitioner from entering into the properties, where the mother was in possession, either ph
Contempt of court cannot be established without fulfilling necessary legal steps and when external factors such as the Government's vested right are involved.
The court emphasized that contempt proceedings should only be initiated when there is a clear case of wilful disobedience of a court's order and that the respondents followed due process to extend cr....
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.
The court ruled that failure to sign a Memorandum of Understanding precludes claimants from benefits, and contempt proceedings cannot challenge prior judgments.
Willful breach of an undertaking given to a Court amounts to Contempt of Court under Section 2(b) of the Contempt of Courts Act, 1971.
Contempt jurisdiction should not be invoked when effective alternative remedies exist for enforcing court decrees.
The undertaking given to the Court binds the party, and failure to comply with it constitutes civil contempt under the Contempt of Courts Act 1971.
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 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....
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