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2021 (6) TMI 708

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..... e account owned by the Respondent No.1 Company herein, was done upon the unilateral termination of the Bipartite Agreement. Since the cancellation of the Agreement is still under dispute, the actions taken thereafter by the Respondents cannot be considered as a wilful disobedience of the status quo order of this Tribunal act or omission which is done voluntarily and with an intent to do something which is forbidden by law or failing to do something which the law requires to be done - There is no allegation in the Contempt Petition that the admitted asset was alienated by the Respondents. The status quo order passed by this Tribunal is still in operation and that all the contentions raised by the Petitioners will be considered while passing the final order in the Company Petition. This Tribunal is of the view that the petitioners failed to establish that there is any wilful disobedience of the orders passed by this Tribunal on 23.09.2020. In the absence of any wilful disobedience, this Court cannot grant the relief sought for by the petitioner - Contempt Petition is dismissed. - Contempt Petition (CP) No.01/KOB/2021 in CP/21/KOB/2020 - - - Dated:- 14-6-2021 - Hon ble Mr. Asho .....

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..... of the above Company Petition, in the interest of justice; d. Direct that the share capital of Respondent No. 1, 6,7,8,9 and 10 are not to be altered or changed during the pendency of the proceedings without supervision of the Tribunal or any other person appointed by the Tribunal; e. Direct that no transfer of shares in Respondent No. 1, 6,7.8,9 and 10 shall be recognised subsequent to the filing of this Petition; f. Direct that no liability shall be created in the Respondent No. 1,6,7,8,9 and 10: g. An order preventing the Respondent No. 2, 3, 4 and 5 from exercising any powers of the Directors of the Respondent No. 1, 6,7,8,9 and 10; h. Direct that no fund shall be transferred from Respondent No. 1. 6.7,8,9 and 10 except with the supervision of the Tribunal or any other person appointed by the Tribunal. i. Direct that no change in the management of the Respondent No. 1. 6.7.8.9 and 10 shall be made during the pendency of the proceedings: 3. This Tribunal vide order dated 20.08.2020 granted interim order directing the status quo in regard to the share Capital of Respondent Nos.1and 6 to 10 Companies in the main Company Petition as on 20.08. .....

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..... dents Company even after the status quo order by this Tribunal on intangible assets of the Company, the Respondents had committed civil contempt on the order of this Tribunal. 6. Respondents filed a detailed counter and stated that since the subcontracts created by the bipartite and tripartite agreement and the right/licence available to the Respondent No.1 in the main Company Petition came to an end with effect from 14.03.2020 by virtue of termination notice dated 12.03.2020, the current account of Respondent No.1 in the main Company Petition is linked with the Respondent No.1 Company Jatayu Project with the Dhanalakshmi Bank Ltd., Chadayamangalam. The security offered for the Bank loan facility as well as for the Operation of the O.D Accounts is the immovable property owned by Respondent No.2. 7. It is also stated that the domain name https://jatayuearthcentre.com/, is not owned by the Respondent No.1 Company in the main Company Petition but the same is the absolute property and asset of Respondent No.1 Company herein. Respondent No.2 has got the domain created through the domain creator and web designer and the same is in the consistent use of Respondent No.1 Company. The .....

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..... ion 2(b) of the Contempt of Courts Act defines civil contempt and it means wilful disobedience to any judgment, decree, direction, order, writ or other process of a court or wilful breach of undertaking given to a court. Wilful means an act or omission which is done voluntarily and intentionally and with the specific intent to do something the law forbids or with the specific intent to fail to do something the law requires to be done, that is to say, with bad purpose either to disobey or to disregard the law. It signifies a deliberate action done with evil intent or with a bad motive or purpose. Therefore, in order to constitute contempt, the order of the court must be of such a nature which is capable of execution by the person charged in normal circumstances. It should not require any extraordinary effort nor should be dependent, either wholly or in part, upon any act or omission of a third party for its compliance. This has to be judged having regard to the facts and circumstances of each case. 12. Therefore, before a contemnor is punished for non-compliance of direction of a Court, the Court must not only be satisfied about the disobedience, but should also be satisf .....

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..... unilateral termination of the Bipartite Agreement. Since the cancellation of the Agreement is still under dispute, the actions taken thereafter by the Respondents cannot be considered as a wilful disobedience of the status quo order of this Tribunal. Moreover, the operation of the project utilizing the assets created by Respondent No.1 in its name even utilizing the finance provided by Respondent No.6 does not amount to sale as defined under Section 57 of the Transfer of Property Act. The entry fee is only collected as user s fee. It never amounts a failure to obey the order to keep status quo as on 23.09.2020 in regard to alienation of assets both tangible and intangible. There is no allegation in the Contempt Petition that the admitted asset was alienated by the Respondents. The status quo order passed by this Tribunal is still in operation and that all the contentions raised by the Petitioners will be considered while passing the final order in the Company Petition. 17. Therefore, at this juncture this Tribunal is of the view that the petitioners failed to establish that there is any wilful disobedience of the orders passed by this Tribunal on 23.09.2020. In the absence of an .....

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