Bombay High Court Dismisses Appeal Against Dismissal of Contempt Motion for Alleged Breach of Ad-Interim Order. Court Held That Respondent Had No Knowledge of the Ad-Interim Order and Therefore No Contempt Was Committed.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The appellant, Pushpanjali Tie Up Pvt. Ltd., filed an appeal against the order of the learned single Judge dismissing its notice of motion under Order 39 Rule 2-A of the Code of Civil Procedure, 1908 (CPC). The notice of motion alleged that respondent No.3, C.D. Equisearch Pvt. Ltd., had committed contempt by transferring or confiscating shares that were the subject matter of the suit, in breach of an ad-interim order dated 29.10.2013. The ad-interim order had been passed in an earlier notice of motion, Notice of Motion (Lodging) No.2150 of 2013, which was finally heard and dismissed by the learned single Judge on 05.02.2014. The appellant's appeal against that dismissal was also dismissed. The appellant contended that despite the dismissal of its notice of motion, it was entitled to reliefs because respondent No.3 had committed a breach of the ad-interim order. The court, however, found that there was no contempt by respondent No.3. The court upheld the impugned order dismissing the present notice of motion, primarily on the ground that respondent No.3 was, for all practical purposes, given no notice of the application for interim reliefs and, more importantly, had no knowledge of the ad-interim order. The court noted that the ad-interim order expressly required notice to be given, but it was not served on respondent No.3. Therefore, the transfer of shares by respondent No.3 could not be considered a contempt of court. The appeal was dismissed.

Headnote

A) Contempt of Court - Breach of Ad-Interim Order - Knowledge of Order - The appellant alleged that respondent No.3 committed contempt by transferring shares in breach of an ad-interim order dated 29.10.2013. The court held that respondent No.3 had no knowledge of the ad-interim order as it was not served with the application or the order. Therefore, no contempt was committed. (Paras 1-2)

B) Civil Procedure - Ad-Interim Order - Automatic Cessation - The ad-interim order dated 29.10.2013 was passed in a notice of motion that was subsequently dismissed on 05.02.2014. With the dismissal of the notice of motion, the ad-interim order automatically came to an end. The appellant's appeal against that dismissal was also dismissed. (Para 2(A))

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Issue of Consideration

Whether the transfer/confiscation of shares by respondent No.3 constituted contempt of court for breach of an ad-interim order dated 29.10.2013, when respondent No.3 had no knowledge of the said order.

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Final Decision

The appeal is dismissed. The impugned order of the learned single Judge dismissing the notice of motion is upheld.

Law Points

  • Contempt of court requires knowledge of the order
  • Breach of ad-interim order without knowledge is not contempt
  • Notice of motion for contempt must be served properly
  • Dismissal of main motion ends ad-interim order automatically
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Case Details

2014 LawText (BOM) (08) 48

Appeal (Lodging) No.302 of 2014 in Notice of Motion No.192 of 2014 in Suit No.131 of 2014

2014-08-07

S.J. Vazifdar, B.P. Colabawalla

Mr. Kevic Setalvad, Senior Counsel with Mr. Anoshak Daver and Mr. Sumit Patni i/b Mr. Ashok Dhanuka for the Appellant; Mr. Jayesh Gawde i/b Thakore Jariwala & Associates for Respondent Nos.1 and 2; Mr. Iqbal Chagla, Senior Counsel with Mr. Arif Bookwala, Senior Counsel, Mr. Mukesh Vashi, Senior Counsel, Mr. Ajay Khandhar and Mr. Jayant Gaikwad i/b Ajay Khandar & Co. for Respondent No.3.

Pushpanjali Tie Up Pvt. Ltd.

Mr. Renudevi Choudhary, Mrs. Ekta Choudhary, C.D. Equisearch Pvt. Ltd., Central Depositories Securities Ltd., National Securities Depositories Ltd.

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Nature of Litigation

Appeal against dismissal of notice of motion under Order 39 Rule 2-A CPC for alleged contempt of court by transferring shares in breach of an ad-interim order.

Remedy Sought

The appellant sought to challenge the transfer/confiscation of shares and to hold respondent No.3 in contempt for breach of the ad-interim order.

Filing Reason

The appellant alleged that respondent No.3 transferred shares in breach of an ad-interim order dated 29.10.2013.

Previous Decisions

The ad-interim order was passed in Notice of Motion (Lodging) No.2150 of 2013, which was dismissed on 05.02.2014. The appellant's appeal against that dismissal was also dismissed.

Issues

Whether respondent No.3 had knowledge of the ad-interim order dated 29.10.2013. Whether the transfer of shares by respondent No.3 constituted contempt of court.

Submissions/Arguments

Appellant argued that respondent No.3 committed breach of the ad-interim order and should be held in contempt. Respondent No.3 contended that it had no knowledge of the ad-interim order as it was not served with the application or the order.

Ratio Decidendi

For a party to be held in contempt for breach of an ad-interim order, it must have knowledge of the order. Since respondent No.3 had no notice of the application or the ad-interim order, no contempt was committed.

Judgment Excerpts

In our view there is no contempt by respondent No.3. respondent No.3 was, for all practical purposes, given no notice of the application for interim reliefs and, more important, had no knowledge of the ad-interim order.

Procedural History

The appellant filed Suit No.131 of 2014 and Notice of Motion No.192 of 2014 under Order 39 Rule 2-A CPC alleging contempt of an ad-interim order dated 29.10.2013 passed in an earlier notice of motion. The learned single Judge dismissed the notice of motion. The appellant appealed to the Division Bench.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 39 Rule 2-A
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High Court Bombay High Court Dismisses Appeal Against Dismissal of Contempt Motion for Alleged Breach of Ad-Interim Order. Court Held That Respondent Had No Knowledge of the Ad-Interim Order and Therefore No Contempt Was Committed.
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