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2002 (1) TMI 1327 - SC - Indian Laws

Issues:
Contempt of court - Violation of court order regarding financial matters exceeding a certain amount.

Analysis:
The case involved an appeal under Section 19 of the Contempt of Courts Act, 1971, where the contemnor challenged the judgment of the Allahabad High Court finding him guilty of contempt and imposing a fine of Rs. 1,000. The appellant, as the chairman of the Municipal Board, received a notice for a meeting to discuss a no-confidence motion. Despite an interim order directing him not to sanction financial matters exceeding Rs. 1,000, he signed multiple cheques totaling around thirty-four lakhs between 9.6.1990 and 17.7.1990. The High Court found the appellant's defense of being misguided by legal advice unacceptable, noting his failure to take steps to comply with the order. The court emphasized that both the letter and spirit of the order must be understood, rejecting the appellant's contention that he had not sanctioned the amounts on the cheques. The High Court held the appellant guilty of wilful and deliberate disobedience of the court order.

The appellant argued that the conditional order of stay in a previous case had become infructuous due to a fresh cause of action, thus relieving him of contempt. However, the High Court rejected this argument, emphasizing the contemnor's failure to act upon learning of the order. The court also dismissed the appellant's contention that he had only approved, not sanctioned, the amounts on the cheques. The High Court considered the contemnor's plea of bona fide belief but found it insufficient to excuse the deliberate disobedience of the court order. Despite the contemnor's unconditional apology, the High Court maintained its finding of contempt.

The Supreme Court, upon reviewing the case and submissions, upheld the High Court's decision, concluding that the appellant's actions constituted wilful and deliberate disobedience of the court order. The Supreme Court found no grounds to interfere with the judgment, affirming the High Court's ruling of contempt. The appeal was dismissed without costs.

 

 

 

 

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