Case Note & Summary
The plaintiff, Feroze Homi Duggan, filed a suit against Benzer Interiors Pvt. Ltd. and others seeking possession of suit premises and recovery of royalty. The court had appointed a Receiver and passed an order on 2nd April 1997 in appeal, by which the defendants agreed to pay royalty at Rs.3 lakhs per month to the Receiver and to execute an agency agreement. The defendant no.10, as director of defendant no.1, gave an undertaking to pay the remaining royalty of Rs.58 lakhs by 20th May 1997. The defendants persistently failed to comply with these orders and the undertaking. The plaintiff took out a Notice of Motion seeking to strike off the defence of defendant nos.1 to 5 and 10 and for their detention in civil prison for wilful disobedience. The court found that the defendants had committed persistent breaches of the court orders and the undertaking. The court held that such conduct justified striking out the defence and ordered the detention of defendant nos.1 and 10 in civil prison for a period of three months. The motion was allowed in terms of prayer clauses (a) and (b).
Headnote
A) Civil Procedure - Striking out defence - Persistent breach of court orders - Order VIII Rule 10 CPC - The court may strike out defence if a party fails to comply with orders regarding payment of royalty or other interim directions - Held that persistent and wilful disobedience of court orders and breach of undertaking justifies striking out defence and detention in civil prison (Paras 2-4). B) Contempt of Court - Breach of undertaking - Civil contempt - Order XXXIX Rule 2A CPC - Wilful disobedience of an order of injunction or breach of an undertaking given to the court amounts to civil contempt - Held that the defendant no.10, as director, gave an undertaking to pay royalty and failed to comply, warranting detention (Paras 2-4).
Issue of Consideration
Whether the defence of the defendants should be struck off and the defendants be detained in civil prison for persistent breach of court orders and undertaking.
Final Decision
Notice of Motion allowed. Defence of defendant nos.1 to 5 and 10 struck off. Defendant nos.1 and 10 ordered to be detained in civil prison for a period of three months.
Law Points
- Striking out defence for non-compliance with court orders
- Civil contempt for breach of undertaking
- Order for detention in civil prison for wilful disobedience
