1998 (7) TMI 725 - HC - Indian Laws

Summary

The High Court of Karnataka considered a contempt petition where the respondent was alleged to have violated the court's direction regarding the deposit of a certain amount to the Department. The respondent had filed an application for dispensation of pre-deposit of duty pending the appeal's hearing and disposal, which was not granted initially. The Division Bench of the court later modified the order, allowing the respondent to deposit 50% of the amount in cash within 60 days and seek instructions from the Tribunal for the remaining 50%. The issue before the court was whether the respondent had complied with the court's directions.The respondent argued that they had deposited the required amount by debiting it in RG 23A Part II, which they claimed amounted to compliance with the court's order. The respondent's counsel also cited a decision from the High Court of Judicature, Allahabad, to support their position. Additionally, the counsel argued that failure to comply with the pre-deposit requirement would only result in the appeal being rejected, and since the main appeal was pending before the Appellate Authority, there was no non-compliance with the court's order.The court, after considering the arguments and relevant precedents, found merit in the respondent's contentions. Referring to the decision in Birla Yamaha Vs. Collector of Central Excise, the court held that payment by a debit entry in RG 23A Part II was compliant with the court's order and constituted payment by cash. The court concluded that there was no willful disobedience on the respondent's part and that there had been compliance with the orders of both the Single Judge and the Division Bench. Consequently, the contempt petition was dismissed with the observation that the respondent had fulfilled the court's directives.In summary, the court analyzed the respondent's method of payment, considered relevant legal principles, and concluded that the respondent had indeed complied with the court's directions, leading to the dismissal of the contempt petition.