LIC Housing Finance: Bombay HC Holds Doctor in Contempt for Defying Vacate Order

The Bombay High Court has delivered a stern message to medical professionals, ruling that doctors cannot use patient care as a shield to defy court orders. In a contempt petition filed by LIC Housing Finance Limited, a division bench of Justice Manish Pitale and Justice Shreeram V. Shirsat found the respondents—doctors operating a hospital on secured property—in willful disobedience of a previous vacate order. The court described their conduct as "aggravated contempt" and directed the immediate shifting of all patients to other facilities by September 16, 2026.

Background of the Dispute

The case stemmed from a writ petition filed by LIC Housing Finance against Shrirang Sadashiv Gokhale and another respondent, who had given an undertaking before the Debts Recovery Tribunal (DRT) to vacate the subject property—a hospital—within a stipulated period. When the respondents failed to comply, LIC Housing Finance approached the High Court, which on July 7, 2026, dismissed the writ petition but extended time for the respondents to abide by their undertaking and shift patients. The court also directed the Debts Recovery Appellate Tribunal (DRAT) to proceed with the respondents' appeal.

However, instead of complying, the respondents admitted 52 new patients into the hospital, prompting LIC Housing Finance to file a contempt petition. On August 18, 2026, the High Court issued notice and expressly directed the respondents not to admit any further patients. Despite this specific order, the respondents continued to admit new patients, leading to the present proceedings.

Arguments and the Court's Rejection

During the hearing, the petitioner's counsel, Mr. Akhil Sarathy, argued that the respondents' actions amounted to aggravated contempt, as they had repeatedly flouted the court's directions. The respondents' counsel, Mr. Rashid Khan, tendered an unconditional apology and sought to justify the admissions by claiming that some patients required immediate attention and could not be refused treatment.

The court found this explanation "totally unacceptable." It observed that the hospital was not the only medical facility in Pune, and patients could have been admitted elsewhere. The bench sharply remarked, "The respondents seem to be indicating that if the alleged contemnors are doctors, they can be spared of consequences of willful disobedience of the order of this Court, only on the ground that they found it appropriate to admit patients in the hospital, in the teeth of undertaking given to the competent tribunal and specific order passed by this Court."

Key Observations from the Judgment

The court emphasized the paramount importance of respecting judicial orders and the rule of law . In a powerful observation, it stated: "There has to be respect for the Rule of law and majesty of the Court . Otherwise, the whole edifice on which the structure of justice is based, will come crumbling down."

The judges also noted that the respondents had not taken any steps to advance their appeal before the DRAT, instead choosing to defiantly and repeatedly disobey the court's orders. This conduct, the court held, warranted firm action.

The Decision and Its Implications

Directing the respondents to ensure that all patients currently admitted in the hospital are properly shifted to other facilities on or before September 16, 2026, the court made it clear that it would "not brook any violation" of this direction. The petition has been listed for further directions on September 17, 2026.

The ruling serves as a strong precedent, underscoring that professional obligations—such as a doctor's duty to treat patients—cannot override compliance with judicial orders. It reinforces the principle that no individual, regardless of their profession, is above the law. The decision also sends a clear signal to litigants that undertakings given to courts and tribunals must be honored, and any defiance will be met with severe consequences under the Contempt of Courts Act.