2008 (8) TMI 558 - SC - Companies Law

Special Court - Jurisdiction and powers in civil matters - Held that - Having heard learned counsel for the respective parties, and having regard to the fact that the order passed by us on 13-3-2008, was in a Contempt proceeding, we modify the directions contained in our order dated 13-3-2008, and while rejecting the prayer made in I.A. No. 3 of 2008, we direct that the quantum of interest payable on the decretal amount will be decided by the Executing Court. We make it clear that in this order we have merely clarified that the decretal amount will be Rs. 1,59,04,500 instead of Rs. 1,42,00,000 and we have not altered any other part of the order dated 13-3-2008. However, the other application filed on behalf of the appellant for extension of time to pay the third instalment in terms of our order dated 13-3-2008, is taken on Board and is allowed and time for deposit of the said instalment is extended till 18-8-2008.

Issues:
1. Contempt of court for disobedience of order dated 24-11-1999.
2. Correction of decretal amount and interest in the order dated 13-3-2008.
3. Execution of decree and payment of interest.

Issue 1: Contempt of Court

The case involved an application filed for contempt of court due to alleged disobedience of an order dated 24-11-1999. The Special Court found the applicant guilty of committing criminal contempt and sentenced him to three months of simple imprisonment along with a fine of Rs. 2,000. The order was suspended for 12 weeks, during which the applicant filed an appeal. In the appeal, a suggestion was made to pay the balance decretal amount in three installments, with specific conditions set for the appeal outcome based on payment compliance.

Issue 2: Correction of Decretal Amount and Interest

During the appeal process, it was discovered that there was an error in the decretal amount mentioned in the order dated 13-3-2008. An application was filed for the correction of the decretal amount, and after a thorough hearing, the amount was corrected to Rs. 1,59,04,500, with interest. The applicant was directed to pay the balance amount in three equal installments starting from April 2008. The hearing of garnishee notices was stayed until the payment deadline, with consequences outlined for default in payment.

Issue 3: Execution of Decree and Payment of Interest

A fresh application was filed seeking modification of the directions regarding the decretal amount and interest. The applicant argued that the inclusion of interest in the balance decretal amount was beyond the scope of the appeal and should be decided by the Executing Court. After hearing both parties, the Supreme Court modified the directions in the order dated 13-3-2008, clarifying that the interest payable on the decretal amount would be decided by the Executing Court. The court rejected the prayer for modification of the decretal amount and extended the time for depositing the third installment as per the original order.

In conclusion, the Supreme Court addressed the issues of contempt of court, correction of the decretal amount and interest, and the execution of the decree with meticulous consideration and appropriate directions to ensure justice and compliance with the legal process.

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