Supreme Court Dismisses Contempt Petition Against Financial Corporation for Alleged Violation of Sale Guidelines. Infraction of Law Laid Down Under Article 141 Must Be Corrected Through Judicial Review, Not Contempt Proceedings.

In Favour of Accused
  • 0
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, M/s Packraft (India) Pvt. Ltd. through its director, filed a contempt petition before the Supreme Court against U.P.F.C. through its Managing Director and others. The petitioner contended that despite specific guidelines laid down by this Court in Mahesh Chandra v. UPFC, (1993) 2 SCC 279, regarding the sale of properties of defaulters by financial corporations, the respondents had not sold the petitioner's property consistent with those guidelines. The petitioner argued that this failure amounted to wilful disobedience of the law laid down by this Court, thereby rendering the respondents liable for conviction for contempt of court. The core legal issue before the Court was whether infraction of a law declared under Article 141 of the Constitution by a previous judgment of the Supreme Court could be the subject matter of contempt proceedings. The petitioner sought issuance of notice to the respondents and their conviction for contempt. The Court observed that the law laid down in Mahesh Chandra's case is the law under Article 141, which is binding on everyone. However, the Court held that if there is any infraction or violation of the law laid down by this Court, the appropriate remedy is to have it corrected through judicial review, not by way of contempt proceedings in this Court. The Court stated that it could not accede to the request to issue notice and convict the respondents for contempt. Accordingly, the contempt petition was dismissed, but the petitioner was left free to seek appropriate remedy according to law. The decision emphasizes that while Supreme Court judgments are binding, non-compliance with the guidelines laid down therein does not automatically constitute contempt of court. Instead, the aggrieved party must resort to judicial review or other legal remedies for correction of any infraction.

Headnote

A) Contempt of Court - Wilful Disobedience - Violation of law laid down by Supreme Court under Article 141 - Constitution of India, Article 141 - The petitioner alleged that respondents failed to follow guidelines in Mahesh Chandra v. UPFC, thereby committing wilful disobedience. The Court held that infraction of law declared under Article 141 must be corrected through judicial review, not contempt proceedings. Held that contempt petition dismissed; petitioner may seek appropriate remedy according to law (Para 1).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether violation of guidelines laid down by Supreme Court in Mahesh Chandra v. UPFC amounts to wilful disobedience and contempt of court.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The contempt petition was dismissed. The Court held that violation of law laid down under Article 141 should be corrected by judicial review, not contempt proceedings. The petitioner was left free to seek appropriate remedy according to law.

Law Points

  • Article 141 binding law
  • infraction of law to be corrected by judicial review
  • contempt not appropriate for violation of guidelines
Subscribe to unlock Law Points Subscribe Now

Case Details

1995 LawText (SC) (11) 120

1995-11-13

K. Ramaswamy, B.L. Hansaria

1996 SCC (1) 304, JT 1995 (8) 405, 1995 SCALE (6) 486

M/S. Packraft (India) Pvt. Ltd. through its Director V.S. Mann

U.P.F.C. through its M.D. R.M. Sethi & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Contempt petition filed against respondents for alleged violation of Supreme Court guidelines regarding sale of defaulter's property by financial corporation.

Remedy Sought

The petitioner sought issuance of notice to respondents and their conviction for contempt of court for wilful disobedience of law laid down in Mahesh Chandra v. UPFC.

Filing Reason

The petitioner alleged that the property was not sold consistent with guidelines laid down by Supreme Court in Mahesh Chandra v. UPFC, amounting to wilful disobedience.

Previous Decisions

The Supreme Court in Mahesh Chandra v. UPFC, (1993) 2 SCC 279 laid down guidelines for sale of properties of defaulters by financial corporations.

Issues

Whether violation of guidelines laid down by Supreme Court in Mahesh Chandra v. UPFC amounts to wilful disobedience and contempt of court.

Submissions/Arguments

Petitioner contended that respondents wilfully disobeyed Supreme Court guidelines in Mahesh Chandra v. UPFC by not selling property accordingly, thus liable for contempt.

Ratio Decidendi

Infraction of law laid down by Supreme Court under Article 141 of the Constitution must be corrected through judicial review, not through contempt proceedings. Contempt is not the appropriate remedy for violation of guidelines in a judgment.

Judgment Excerpts

The law laid down by this Court in Mahesh Chandra’s case (supra) is the law under Article 141. It is needless to say that everyone is bound by the law, But, if there is any infraction of the action in violation of the law laid down by this Court, appropriate remedy is to have it corrected by a judicial review but not by way of contempt proceedings in this Court. However, it would be open to the petitioner to seek appropriate remedy according to law. The contempt petition is accordingly dismissed.

Procedural History

The petitioner filed a contempt petition before the Supreme Court alleging wilful disobedience by respondents of guidelines in Mahesh Chandra v. UPFC. The Court considered the application and dismissed it, holding that violation of law under Article 141 must be corrected by judicial review.

Acts & Sections

  • Constitution of India: Article 141
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Upholds Respondent Collector of Stamps in Consumer Protection Act Dispute Over Registration of Will and Stamp Duty. Person Seeking Registration of Document Not a Consumer Under Section 2(1)(d) Because Registration and Stamp Duty Are Sta...
Related Judgement
High Court Bombay High Court Dismisses Writ Petition Challenging Transfer of Suit to Junior Division Court. Section 15 CPC Allows Suit to Be Tried by Lowest Competent Court Regardless of Previous Decree by Senior Division.