High Court of Karnataka Initiates Contempt Proceedings Against Accused for Wilful Disobedience of Arbitrator's Order Regarding Fees. Failure to Pay Arbitrator's Fees as Directed by Order Dated 02.04.2011 Amounts to Contempt of Court Under Article 215 of the Constitution of India and Sections 11 and 12 of the Contempt of Courts Act, 1971.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The High Court of Karnataka at Bangalore initiated suo motu contempt proceedings against Mr. Patrick Lawrence, proprietor of M/s. Lion Holding's, based on a letter dated 02.04.2011 from Justice B.S. Raikote, a former Judge of the High Court of Karnataka, who had been appointed as an arbitrator in C.M.P. No.41/2008. The background of the case is that the accused had filed C.M.P. No.41/2008 seeking appointment of an arbitrator under an agreement dated 12.04.2004. This Court, by order dated 01.12.2008, allowed the petition and appointed Justice B.S. Raikote as the arbitrator, directing that his fees be fixed by him and that the proceedings be concluded expeditiously. The arbitrator fixed his fees and passed an order on 02.04.2011 directing the accused to pay the outstanding fees. The accused failed to comply with this order, leading to the contempt proceedings. The legal issue before the Court was whether the accused's failure to pay the arbitrator's fees as directed constituted contempt of court. The Court considered the arguments that the arbitrator's order was a judicial order and its disobedience amounted to contempt. The Court found that the accused had wilfully disobeyed the order and was guilty of contempt. The Court sentenced the accused to simple imprisonment for one month and a fine of Rs. 2,000, with a default sentence of one month. The Court also directed that the accused be taken into custody to serve the sentence.

Headnote

A) Contempt of Court - Wilful Disobedience - Arbitrator's Fees - Article 215 of the Constitution of India r/w Sections 11 and 12 of the Contempt of Courts Act, 1971 - The accused failed to pay the arbitrator's fees as directed by the arbitrator's order dated 02.04.2011, which was part of the arbitral proceedings under the order of this Court dated 01.12.2008 appointing the arbitrator. The Court held that the arbitrator's order regarding fees is an order of the court and its wilful disobedience amounts to contempt. The accused was found guilty and sentenced to simple imprisonment for one month and a fine of Rs. 2,000, with default sentence of one month. (Paras 1-10)

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Issue of Consideration

Whether the accused is guilty of contempt of court for wilfully disobeying the order dated 02.04.2011 passed by the arbitrator directing payment of outstanding fees.

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Final Decision

The accused is found guilty of contempt of court and sentenced to simple imprisonment for one month and a fine of Rs. 2,000, in default of payment of fine, simple imprisonment for one month. The accused is directed to be taken into custody to serve the sentence.

Law Points

  • Contempt of Court
  • wilful disobedience of court order
  • arbitrator's fees
  • Article 215 of the Constitution of India
  • Sections 11 and 12 of the Contempt of Courts Act
  • 1971
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Case Details

2013 LawText (KAR) (06) 27

C.C.C. No. 418/2013 (Civil)

2013-06-13

N Kumar, V. Suri Appa Rao

Sri. V.S. Hegde, AGA for Accused

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Nature of Litigation

Suo motu contempt proceedings for alleged wilful disobedience of an arbitrator's order regarding payment of fees.

Remedy Sought

Initiation of contempt proceedings against the accused and punishment in accordance with law.

Filing Reason

Letter dated 02.04.2011 from Justice B.S. Raikote, former Judge of the High Court of Karnataka, requesting contempt proceedings against the accused for violating his order dated 02.04.2011 directing payment of outstanding fees.

Previous Decisions

Order dated 01.12.2008 in C.M.P. No.41/2008 appointing Justice B.S. Raikote as arbitrator and directing him to fix his fees and conclude proceedings expeditiously.

Issues

Whether the accused is guilty of contempt of court for wilfully disobeying the order dated 02.04.2011 passed by the arbitrator directing payment of outstanding fees.

Submissions/Arguments

The accused failed to pay the arbitrator's fees as directed, constituting wilful disobedience of a court order.

Ratio Decidendi

An arbitrator appointed by the court and whose fees are fixed by the court's order is a part of the judicial process; disobedience of the arbitrator's order regarding fees amounts to contempt of court under Article 215 of the Constitution of India and Sections 11 and 12 of the Contempt of Courts Act, 1971.

Judgment Excerpts

High Court Registry has registered this contempt petition on the basis of the letter dated 02.04.2011 written by Justice B.S. Raikote, Former Judge of the High Court of Karnataka requesting to initiate contempt proceedings against the accused herein. This Court by an order dated 1st December 2008 allowed the petition, appointed Justice Sri. B.S. Raikote, Former Judge of the High Court of Karnataka and Andhra Pradesh.

Procedural History

The High Court Registry registered a suo motu contempt petition based on a letter dated 02.04.2011 from Justice B.S. Raikote, the arbitrator appointed by this Court in C.M.P. No.41/2008, alleging that the accused had violated his order regarding payment of fees. The contempt case was heard and disposed of on 13.06.2013.

Acts & Sections

  • Constitution of India: Article 215
  • Contempt of Courts Act, 1971: 11, 12
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