Supreme Court Dismisses Contempt Petition for Alleged Wilful Disobedience of Order to Vacate Premises — Failure to File Undertaking and Pay Dues Not Contempt as Substantive Compliance Achieved.

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Case Note & Summary

The contempt petition was filed by Hukum Chand Deswal (petitioner) against Satish Raj Deswal (respondent) alleging wilful disobedience of the Supreme Court's order dated 22.2.2019. The background involves a suit for possession and recovery of rent filed by the petitioner in the Delhi High Court, which was disposed of based on a settlement dated 28.5.2015. The respondent agreed to vacate the suit property by 31.12.2017 and pay rent. Subsequently, the respondent sought extension of time, and the High Court on 12.7.2018 recorded a second agreement extending the vacating date to 30.11.2018. The respondent's applications for further extension were rejected by the High Court and the Division Bench. The respondent then approached the Supreme Court, which on 22.2.2019 dismissed the special leave petitions but granted four weeks' time to vacate, subject to payment of outstanding dues and filing an undertaking within two weeks. The respondent vacated the premises on 22.3.2019 but did not file an undertaking or pay the alleged outstanding dues of Rs.1,32,48,794. The petitioner also claimed that the respondent caused damage to the property. The Court examined whether these acts constituted contempt. It held that the respondent complied with the substantive direction to vacate within time. The failure to file an undertaking, while a technical breach, did not amount to wilful disobedience as the main purpose of the order was achieved. Regarding outstanding dues, the Court noted a bona fide dispute over the amount, as the respondent claimed the petitioner had violated the trademark agreement, and the order did not specify the exact sum. As for damage to property, the settlement permitted removal of structures, and the petitioner did not provide concrete evidence of deliberate damage. The Court emphasized that contempt requires proof of deliberate or contumacious disobedience with mens rea, which was lacking. The respondent tendered an unconditional apology. Consequently, the contempt petition was dismissed, and the rule was discharged.

Headnote

A) Contempt of Court - Wilful Disobedience - Supreme Court Order - The petitioner alleged that the respondent failed to file an undertaking, pay outstanding dues, and caused damage to the suit premises in violation of the Court's order dated 22.2.2019. The Court held that the respondent vacated the premises within the stipulated time and the petitioner failed to establish deliberate or contumacious disobedience. The contempt petition was dismissed. (Paras 1-20)

B) Contempt of Court - Undertaking - Requirement - The Court's order required the respondent to file an undertaking within two weeks. The respondent did not file an undertaking but vacated the premises within the extended time. The Court held that the failure to file an undertaking, without more, does not constitute contempt as the substantive direction to vacate was complied with. (Paras 12-20)

C) Contempt of Court - Outstanding Dues - Payment - The petitioner claimed Rs.1,32,48,794 as outstanding dues. The respondent disputed the amount and alleged that the petitioner had violated the settlement by continuing to use the trademark. The Court held that the dispute over dues is a civil matter and not contempt, as the order did not specify the exact amount payable. (Paras 12-20)

D) Contempt of Court - Damage to Property - Allegation - The petitioner alleged that the respondent caused damage to the suit property while vacating. The Court noted that the respondent was permitted to remove civil structures and fixtures under the settlement, and the petitioner failed to provide specific evidence of damage beyond normal wear and tear. Held that such allegations require proof of deliberate damage, which was lacking. (Paras 12-20)

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Issue of Consideration

Whether the respondent committed wilful disobedience of the Supreme Court's order dated 22.2.2019 by failing to file an undertaking, pay outstanding dues, and causing damage to the suit premises while vacating.

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Final Decision

The Supreme Court dismissed the contempt petition, holding that the respondent did not commit wilful disobedience. The respondent vacated the premises within the stipulated time. The failure to file an undertaking was a technical breach but not contempt as the substantive direction was complied with. The dispute over outstanding dues was a civil matter, and the allegation of damage was not substantiated. The rule was discharged.

Law Points

  • Contempt of Court
  • Wilful Disobedience
  • Undertaking
  • Outstanding Dues
  • Damage to Property
  • Burden of Proof
  • Mens Rea
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Case Details

2020 LawText (SC) (5) 13

Contempt Petition (Civil) No. 591/2019 in Special Leave Petition (Civil) No. 5350/2019

2020-05-06

A.M. Khanwilkar

Hukum Chand Deswal

Satish Raj Deswal

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Nature of Litigation

Contempt petition alleging wilful disobedience of Supreme Court order dated 22.2.2019.

Remedy Sought

Petitioner sought action against respondent for contempt of court for failing to file undertaking, pay outstanding dues, and causing damage to property.

Filing Reason

Respondent allegedly violated the Supreme Court's order by not filing an undertaking, not paying outstanding dues, and damaging the suit premises while vacating.

Previous Decisions

The Supreme Court on 22.2.2019 dismissed the respondent's special leave petitions but granted four weeks' time to vacate subject to payment of outstanding dues and filing an undertaking within two weeks.

Issues

Whether the respondent committed wilful disobedience of the Supreme Court's order by failing to file an undertaking. Whether the respondent committed wilful disobedience by failing to pay outstanding dues. Whether the respondent committed wilful disobedience by causing damage to the suit property while vacating.

Submissions/Arguments

Petitioner argued that respondent failed to file undertaking, pay outstanding dues of Rs.1,32,48,794, and caused damage to property, constituting wilful disobedience. Respondent contended that no amount was outstanding as petitioner violated trademark agreement, and damage was not deliberate; respondent vacated within time and tendered unconditional apology.

Ratio Decidendi

For an act to constitute contempt of court, there must be wilful and deliberate disobedience of the court's order with mens rea. Mere failure to comply with a procedural direction (like filing an undertaking) does not amount to contempt if the substantive direction is complied with. Disputes over monetary dues and allegations of damage require proof of deliberate violation and are not automatically contempt.

Judgment Excerpts

The gravamen of the grievance of the petitioner/original plaintiff is that the respondent failed to file undertaking, as also, to pay the outstanding dues before vacating the suit premises and further, caused damage to the property before handing over possession thereof to the petitioner on 22.3.2019. It is not in dispute that the respondent vacated the suit premises before the date prescribed in the order of this Court, dated 22.2.2019. The respondent besides tendering unconditional apology has offered explanation pointing out that he was not in arrears and no amount was outstanding or payable to the petitioner who had continued to infringe the trademark 'SPLASH' belonging to the respondent.

Procedural History

The petitioner filed CS(OS) No. 2041/2013 in Delhi High Court for possession and recovery of rent. The suit was disposed of on 30.6.2015 based on a settlement. The respondent filed contempt case and applications for extension of time, which were rejected by the High Court and Division Bench. The respondent then filed special leave petitions in the Supreme Court, which were dismissed on 22.2.2019 with directions to vacate within four weeks, pay outstanding dues, and file an undertaking. The respondent vacated on 22.3.2019. The petitioner filed the present contempt petition on 22.3.2019.

Acts & Sections

  • Constitution of India: Article 129
  • Contempt of Courts Act, 1971: Sections 12, 14
  • Rules to Regulate Proceedings for Contempt of the Supreme Court, 1975: Rule 3
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Supreme Court Supreme Court Dismisses Contempt Petition for Alleged Wilful Disobedience of Order to Vacate Premises — Failure to File Undertaking and Pay Dues Not Contempt as Substantive Compliance Achieved.
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