* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on : 16 October 2024 Judgment pronounced on: 09 December 2024 + CONT.CAS(C) 631/2017, CM APPL. 4726/2019, CM APPL.

12739/2019, CM APPL. 8089/2023 & CM APPL. 56198/2023 LECHAMPS (SEA) PTE LTD .....Petitioner Through: Mr. Sanjeev Sahay, Mr. Archit Rajput, Ms. Shagun Saproo &

Mr. Karan Deep Singh, Advs.

versus ASHISH GUPTA & ANR. .....Respondents Through: Mr. Hemant Chaudhri, Mr.

Arjun Sanjay, Ms. Shaurya Pushpam & Mr. Vasu Goel, Advs.

CORAM:

HON'BLE MR. JUSTICE DHARMESH SHARMA

JUDGMENT

1. The present petition has been filed by the petitioner under Sections 2, 10 and 12 of the Contempt of Courts Act, 1971, [CC Act] seeking initiation of contempt proceedings against the respondents/contemnors for the alleged wilful breach and disobedience of the Memorandum of Understanding [‘MoU’] dated 27.04.2017 which was taken on record by this Court vide consent order dated 02.05.2017 in CS (OS) No. 2130/2015 titled “Le Champ (SEA) PTE LTD. vs. Delhi Control Devices Private Limited”.

2. The admitted facts leading to the filing to the present petition are that the petitioner herein, over a period of time, supplied and Signature Not Verified Digitally Signed By:PRAMCOODNT.CAS(C) 631/2017 Page 1 of 13 delivered certain goods in the nature of “Super Capacitors, Industries, LCD, Chip Capacitors, Coin battery etc.”, valued at a total of USD 346,359.91/-, to the respondent‟s company i.e., M/s Delhi Control Devices Private Limited. However, due to failure on the part of the respondent to pay the amount for the goods purchased, the petitioner was constrained to file a suit for recovery bearing CS (OS) No. 2130/2015 against M/s Delhi Control Devices through its director, namely Mr. Ashish Gupta, i.e., respondent herein.

3. During the pendency of the suit, the parties entered into a settlement duly recorded in the MoU dated 09.03.2016. It is brought out from the record, however, that the dispute between the parties could not be put to a quietus since the terms of the said MoU dated 09.03.2016 were never honoured by the respondent herein. Subsequently, this Court, in the suit proceedings, vide order dated

02.01.2017, recorded as under:

“Mr. Ashish Gupta, one of the Directors of defendant's company is present. It is submitted that other Directors are his mother and father and he has the permission from them to make a submission before this Court. It is submitted that defendant no. 1 accepts its liability to pay a sum of USD $ 3,46,358.91.

However, he seeks an adjournment stating therein that he wants to discuss the modes of payment of this amount with the plaintiff.

Not opposed.

It is further submitted that he wishes to move the joint application disclosing the details of the assets within a week.

At request, list the matter on 21.03.2017.”

4. Upon the respondent herein admitting his liability before this Court, besides showing his readiness and willingness to pay the outstanding dues to the petitioner herein, the parties entered into another MoU on 27.04.2017 which was declared “lawful” and taken Signature Not Verified Digitally Signed By:PRAMCOODNT.CAS(C) 631/2017 Page 2 of 13 on record by this Court vide subsequent order dated 02.05.2017 passed in an application bearing I.A. No. 5375/2017 filed jointly by the parties under Order XXIII Rule 3 of the Code of Civil Procedure, 1908. The relevant portion of the order dated 02.05.2017 passed in CS (OS) No. 2130/2015, of which contempt is presently alleged, is reproduced hereinbelow:

“LA. 5375/2017 …I have perused the terms and conditions contained in the said Memorandum of Understanding dated 27.04.2017 entered into between the parties. The same is lawful and is taken on record. The parties shall abide by the terms and conditions of the said Memorandum of Understanding dated 27.04.2017, without demur.

With the above directions, the application is allowed and disposed of accordingly.

CS(OS) 2130/2015 In view of the out of court settlement arrived at between the parties