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TMI Blog2021 (11) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... t the unsecured loan was to be paid @ 15% annually even after 01.04.1999 cannot be accepted. It is well settled that it is not permissible to the Court to examine the correctness of the earlier decision which has become final between the parties. However, when an order was reasonably capable of more than one interpretation a proceeding for contempt would not be maintainable. No case has been made out to punish the Respondents for contempt. The Respondents having themselves initiated proceedings for execution of the judgment dated 20.08.2019 and have expressed their willingness to deposit the entire amount with interest @ 15% till 30.09.1998 and thereafter @ 10% per annum annually compounded till the date payment is made, the Respondents are permitted to deposit the amount as above before the Executing Court within one month from today. Contempt Application is disposed off. - Contempt Case (AT) No. 27 of 2020 IN Company Appeal (AT) No. 44 of 2018 - - - Dated:- 26-11-2021 - [Justice Ashok Bhushan] Chairperson, [Justice Jarat Kumar Jain] Member (Judicial) And [Dr. Ashok Kumar Mishra] Member (Technical) For the Applicants : Ms. Shweta Bharti, Mr. Anil Tiwari, Mr. Aayusha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivil Appeal No. 1220-1221 of 2020 before the Hon ble Supreme Court which too was dismissed vide order dated 14.02.2020. The Applicants gave a legal notice dated 25.02.2020 to the Contemnors, demanding payment of a total amount of ₹ 20,349,111/- towards the balance of unsecured loan with compound rate of interest at 15% per annum from 01.04.1999 to 29.02.2020. The Contemnors had filed an Application for execution of the judgment and order dated 20.08.2019 before the NCLT, Bench at Cuttak seeking for following directions:- a) Direct the Respondent No.1 2 to accept the balance of unsecured loan with interest at agreed rate since 01.04.199 amounting to ₹ 9,21,598/- (Rupees Nine Lakhs Twenty One Thousand Five Hundred and Ninety Eight Only) and ₹ 28,88,503/- (Rupees Twenty Eight Lakhs Eighty Eight Thousand and Five Hundred and Three Only); and b) Direct Respondent No.1 and 2 to transfer their shares in favour of Petitioner No.1 in lieu of the consideration amount as per the valuation report annexed; or c) Direct Respondent No.4 (ROC) to transfer the shares of Respondent No.1 and 2 in the name of Petitioner No.1; and d) Direct Respondent No.1 and 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt as per the calculation of the Respondents and permission may be given for the same. Respondents may file the Interlocutory Application as stated. List the Contempt Case on 14th July, 2021. 7. The Contempt Application was heard thereafter. We have heard Learned Counsel for the Applicants as well as Learned Counsel for the Respondents. 8. Ms. Sweta Bharti, Counsel appearing for the Applicants contends that the Applicants have not submitted the proposal as directed by this Tribunal in respect of balance unsecured loan with interest @ 10% compounded annually which Respondents had to pay from 01.04.1999 rather they insist that they should be paid the amount @ 15%. It is submitted that the judgment of this Tribunal dated 20.08.2019 has become final between the parties according to which judgment the Respondents were obliged to make payment of unsecured loan with interest @ 15% compounded. Hence, the Applicants are entitled for payment of unsecured loan with interest @ 15% compounded annually. The Respondents having failed to pay such amount have committed contempt of this Tribunal s order dated 20.08.2019 and are liable to be punished. 9. Learned Counsel appearing for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have brought on record the proceedings of general body meeting dated 25.09.1998 as Annexure-B which has been referred to and relied in Paragraph 6 of the Application. Paragraph 6 of the Application states as follows:- 6. Thereafter, the Contemnors started to pay the interest on the unsecured loans of the Petitioner at the compound rate of 15% in per annum up to 30.09.1998, as the same is evident from the minutes of Seventh Annual General Meeting of the Shareholders of Contemnor No.1 held on 25.09.1998 which was also part of the records of the Appeal filed before this Hon ble Tribunal. The copy of the minutes of the Annual General Meeting dated 25.09.1998 of Contemnor No.1 annexed herewith and marked as Annexure- B 12. Now we revert to the proceedings of the Annual General Meeting dated 25.09.1998 which indicates that it was resolved that from 01.10.1998 the interest will be paid to the shareholders on their unsecured loans only at 10% per annum compound rate of interest upto 31.03.1999. The Resolution passed on 25.09.1998 is to the following effect:- (7) Shri R.P. Singh moved a resolution that as the company had run into loss during 1997-98 and the inflationary trend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties, the Respondents are liable to pay the amount. We further noticed that in the order passed by this Tribunal dated 20.08.2019, there is no direction to make payment of interest @ 15% since 01.04.1999. Learned Counsel for the Appellant submits that direction to pay 15% interest is decipherable from the observations made in paragraph 32. It is submitted by the Respondents that the amount included by the Applicants is unsecured loan on which the Respondents were paying interest @ 15% and TDS was also being deducted. 15. The above observation notices the case of the Respondents that they were paying interest @ 15%. There is no dispute that the earlier interest @15% was being paid till 30.09.1998 and the above observations only indicate that the payments were earlier made @ 15% but that the above observations cannot read to mean that even from 01.04.1999 the Respondents agreed to make the payment @ 15%. The expression at agreed rate as contained in paragraph 33 of the judgment of this Tribunal dated 20.08.2019 is capable of interpretation as put by the Respondents. When general body Resolution dated 25.09.1998 have expressly decided to pay interest @ 10% from 01.04.1999 and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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