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2025 (4) TMI 1530

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..... ith the main Petition vide Order dated 24.02.2023 and eventually, owing to the said non-payment of arrears, the main Petition was disposed of as this Court observed to not entertain the prayer of Mr Shaji Augustine, the Petitioner therein (hereinafter referred to as "Respondent-Contemnor") but the proceedings in instant Petition sustained. 3. Facts forming the backdrop of the instant Petition are that the Petitioner Association is owner of the decree scheduled building, consisting of 96 furnished studio apartments, at Munnar, Kerala (hereinafter referred to as the "said Property"). An agreement was entered between the Petitioner Association and Respondent-Contemnor on 26.01.2014, permitting the latter to occupy and use the said Property for a period of 10 years as against payment of licence fees of INR 12 Lakhs per month (hereinafter referred to as the "said Agreement). 4. Within a short period of entering into the said Agreement, Respondent-Contemnor defaulted in payment of the license fees. On persistent default, Petitioner Association was constrained to institute OS No.30 of 2015 before the Sub Court at Thodupuzha, Kerala for realization of the arrears and other reliefs. As th .....

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..... porated in the Order dated 11.04.2017. 8. On default on the part of the Respondent-Contemnor in making payment through a promissory note, as per the Settlement Agreement, Petitioner Association preferred Execution Petition No. 58 of 2020 on 11.03.2020, no money was paid by the Respondent-Contemnor with effect from the month of July 2018. The Respondent-Contemnor was unsuccessful before the District Court in EA No. 14 of 2021 in its challenge to the maintainability of the execution petition. The Execution Court passed an Order dated 23.03.2021, giving an instalment facility to the Respondent-Contemnor for payments of its arrears, with the first being due on 01.06.2021 and the last being 01.09.2021. Furthermore, the amount of arrears being undisputed, and nothing having been paid, the Execution Court ordered delivery of the said Property. The Respondent-Contemnor challenged the order of the Execution Court before the High Court of Kerala, which was dismissed vide Judgment dated 20.09.2021. 9. It is at this stage that the respondent preferred the main Petition before this Court challenging the Judgment dated 20.09.2021. Notice was issued vide Order dated 12.11.2021 and subsequently, .....

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..... bsequently, on 01.12.2023, when both the main Petition and instant Petition were taken up for hearing following order was passed:- "The learned counsel appearing for the petitioner states that the petitioner has already vacated the premises subject matter of this Special Leave Petition. We find that the order dated 7th November, 2022 directing the petitioner to deposit money has not been complied with. The petitioner has expressed inability to pay the money. The jurisdiction of this Court under Article 136 of the Constitution of India is always discretionary. Considering the conduct of the petitioner of not paying a single farthing after 7th November, 2022, we decline to entertain this Special Leave Petition and the same is accordingly dismissed. However, the question of law is kept open to be considered in an appropriate case. Pending application also stand disposed of. CONMT. PET. (C) No. 712/2023 in SLP(C) No. 17433/2021. List on 22nd January, 2024." 14. With the main Petition having been dismissed, the instant Petition continued to survive and was taken up for hearing on various dates. Respondent-Contemnor was called upon by this Court on 15.03.2024 to file a .....

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..... e Order dated 07.11.2022. Even till date no payment whatsoever has been made which clearly reflects the malafide of the Respondent-Contemnor. A reference is also made to the Order dated 04.02.2022 when status quo was ordered by this Court in relation to the property in question to be maintained. Prayer has thus been made for punishing the Respondent-Contemnor for having committed contempt of this Court's Order dated 07.11.2022. 19. Having considered the submissions made by the counsels for the parties, we are of the considered view that the Respondent-Contemnor has deliberately and with malafide intention, not only mislead and misused the process of the courts but has also intentionally violated the order passed by this Court on 07.11.2022 by not making the payment as directed therein. 20. At the prospect of reiteration of the factual matrix, the conduct of the Respondent-Contemnor since the Settlement Agreement reflects his patent intent to retain the said Property and this indicates that the business proposition was not only a viable one but was yielding profits. No person with a modest business acumen would continue with a loss-causing endeavour. Respondent- Contemnor has nowh .....

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..... esent before the Court. The contemnor was heard in person in Court and was again given an opportunity to comply with the order of which he had committed contempt i.e. non-payment of the amount and the arrears. The contemnor did not express any remorse nor showed any intention to comply with the order passed by this Court rather asserted that he was not in a position to make any payment. It is in these circumstances that the matter is being considered. 27. The e-mail dated 17.11.2022 intrinsically reflects financial capability and liquidity at hands of the Respondent- Contemnor. Had the Respondent-Contemnor been in dire financial difficulty, the said communication would not have come to the fore. Besides, had it been that the Respondent-Contemnor was unable to comply with the Order dated 07.11.2022 he should have moved this Court for modification or withdrawal of the order. 28. All throughout, the Respondent-Contemnor had been in possession of the said Property and had been utilising the income generated from running of the said resort. Acceptance on the part of the Respondent-Contemnor with regard to the viability of the project is apparent from the Order dated 07.11.2022 and his .....

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..... e the Court which would amount to misleading the Court into believing the bonafide at the hands of the Respondent-Contemnor. It would amount to an attempt to exploit the procedural process of Court to outreach and manoeuvre it resulting in abuse of law and legal proceedings. 33. Any person who misuses the process of the Court with ulterior motives cannot be said to be a person having approached the Court with clean hands. A person who tries to tarnish the process of litigation to the extent of misguiding and misleading the proceedings before the Court resulting in passing of order(s) which are to his benefit at the cost of the loss of dignity, leading to shrinkage of the faith of the common man in the judicial process cannot be permitted. 34. This Court, in Hira Lal Dixit v. State of Uttar Pradesh (1954) 2 SCC 325 in paras 9 and 10 held as follows : "9. It should no doubt be constantly borne in mind that the summary jurisdiction exercised by the superior courts in punishing contempt of their authority exists for the purpose of preventing interference with the course of justice and for maintaining the authority of law as is administered in the court and thereby affording protect .....

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..... and the sanctity of legal proceedings. It goes beyond from mere defiance of a Court's authority, but also denotes a profound challenge to the principles that underpin the rule of law. At its core, it is a profound disavowal of the respect and adherence to the judicial process, posing a concerning threat to integrity of judicial system. When a party engages in contempt, it does more than simply refusing to comply with a Court's order. By failing to adhere to judicial directives, a contemnor not only disrespects the specific order, but also directly questions the Court's ability to uphold the rule of law. It erodes the public confidence in the judicial system and it's ability to deliver justice impartially and effectively. Therefore, power to punish for Contempt of Court's order is vital to safeguard the authority and efficiency of the judicial system. By addressing and penalizing contemptuous conduct, the legal system reinforces its own legitimacy and ensures that judicial orders and proceedings are taken seriously. This deterrent effect helps to maintain the rule of law and reinforces public's faith in the judicial process, ensuring that Courts can function .....

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