2021 (2) TMI 1191 - Tri - Companies Law

Seeking to initiate contempt proceedings against the alleged contemnors for their wilful disobedience of Orders - Section 425 of Companies Act, 2013 R/w Sections 11, 12 14 of the Contempt of Courts Act, 1971 R/w. Rule 11 of the NCLT Rules, 2016 - HELD THAT - Though notices were issued to the Respondent, none appeared for the Respondent. Therefore, it is not known whether the contemnor is financially solvent or not, in order to initiate contempt proceedings. The Contempt Proceedings need not not be initiated - Contempt Petition is hereby disposed off.

Summary

Issues: Contempt of court for wilful disobedience of orders, compliance with court orders, financial solvency of contemnor

In the judgment delivered by the National Company Law Tribunal, Bengaluru Bench, the case involved a Contempt Petition filed by the Erstwhile Resolution Professional seeking to initiate contempt proceedings against alleged contemnors for their wilful disobedience of court orders. The Petitioner sought compliance with the court's orders and payment of outstanding fees and expenses. The Tribunal carefully reviewed the orders passed in the case and noted the absence of the Respondents during the proceedings, indicating a lack of financial solvency to initiate contempt proceedings. As a result, the Tribunal decided not to proceed with contempt proceedings due to the non-appearance of the Respondents and lack of clarity on their financial status. The Contempt Petition was disposed of, granting liberty to the Petitioner to pursue payment from the contemnors for the outstanding amount as per the court orders. The judgment highlights the importance of compliance with court orders and the need for parties to participate in legal proceedings to address issues effectively.