2021 (12) TMI 1396 - SC - Indian Laws

Contempt proceedings - disobedience of the order passed by this Court - suppression of material facts - It appears that though eight Suits filed by one Hero Cycles Limited were pending and still the same was not disclosed before this Court - applicability of provisions of the Contempt of Courts Act - HELD THAT - On considering the fact that Respondent No.1 has agreed that on deposit of the entire balance sale consideration of Rs. 8,35,00,000/- by the petitioners herein - original plaintiffs which may be deposited with the Commercial Court, Ludhiana and the Respondent No.1 may not be permitted to withdraw the same till the outcome of the aforesaid Suits and subject to the ultimate outcome of the aforesaid Suits and on such deposit, the respondent(s) shall execute the Sale Deed in favour of the petitioners - original plaintiffs and handover peaceful and vacant possession. It is reported that respondent is personally present in the Court and the aforesaid statement is made in his presence and he has also agreed to the aforesaid and the order which is being passed. The Commercial Court, Ludhiana are directed to invest the aforesaid amount to be deposited by the petitioners, as observed herein above, in the name of the Respondent No.1 herein original Defendant Nos. 2 3 in a Fixed Deposit in any nationalized Bank and the same shall be appropriated subject to the ultimate outcome of the aforesaid Commercial Suits. If the aforesaid Suits are decreed in favour of the original plaintiffs - Hero Cycles Limited and in case the Commercial Court holds in favour of the respondent No.1 herein, in that case, subject to the order that may be passed by the DRT-II Chandigarh, if any, the said amount be paid to the Respondent No.1. The Respondent No.1 herein and the learned counsel appearing on behalf of the Respondent No.1 has handed over the original Title Deeds/documents in favour of the Respondent No.1 to the learned counsel appearing on behalf of the petitioners and the learned counsel appearing on behalf of the petitioners are satisfied with respect to the title of the Respondent No.1 and has stated at the Bar that they have no objection if the Sale Deed is executed by the Respondent No.1 on the basis of the Title Deeds/documents mentioned in the file and that they are satisfied with the title of the Respondent No.1 - present proceedings are closed. Petition disposed off.

Summary

Issues:
1. Contempt proceedings initiated for disobedience of a court order.
2. Suppression of material facts regarding pending suits.
3. Execution of Sale Deed and possession of property.
4. Deposit of sale consideration with the Commercial Court.
5. Investment of deposited amount in Fixed Deposit.
6. Handling of Title Deeds and satisfaction with title.
7. Communication of order to relevant courts.

Detailed Analysis:
1. The contempt proceedings were initiated due to the alleged disobedience of a court order dated 30.08.2019 in a Special Leave Petition. The Terms of Settlement required the respondent to execute a Sale Deed for the property in question in favor of the petitioners. The settlement terms specifically mentioned that the property should not be subject to any other litigation or dispute. However, it was found that there was suppression of material facts as eight suits filed by another party were pending, which the respondent failed to disclose. This suppression could warrant action under the Contempt of Courts Act.

2. The respondent agreed to deposit the entire balance sale consideration with the Commercial Court, Ludhiana, and not withdraw it until the outcome of the pending suits. Upon deposit, the respondent was to execute the Sale Deed in favor of the petitioners and hand over possession. The petitioners were directed to deposit the amount within a week, and upon confirmation, the Sale Deed was to be executed, and possession handed over. The Commercial Court was instructed to invest the deposited amount in a Fixed Deposit in a nationalized bank, subject to the suits' outcome.

3. The respondent handed over the original Title Deeds/documents to the petitioners' counsel, who confirmed satisfaction with the title. The petitioners had no objection to the Sale Deed being executed based on these documents. Following this, the court closed the proceedings and directed the Registry to communicate the order to the relevant courts for their perusal and compliance. The parties were instructed to produce the order before the Commercial Court and DRT-II, Chandigarh.

4. The judgment concluded by closing the contempt petition and miscellaneous applications, with liberty reserved for either party to approach the court if needed. The communication of the order to the Commercial Court and DRT-II, Chandigarh was emphasized, ensuring awareness of the court's directives in the related matters.