Home Case Index All Cases Companies Law Companies Law + AT Companies Law - 2019 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1304 - AT - Companies LawContempt petition - contempt of disobedience of this Appellate Tribunal’s order - wilful breach of the undertaking given by the Contemnors - Terms of Settlement - HELD THAT:- ‘Company Appeal (AT) No. 99 of 2018’ was not decided by this Appellate Tribunal on merit and was allowed to be withdrawn on 29th May, 2018 as the parties reached the ‘Terms of Settlement’. Subsequently on 29th June, 2019, though Interlocutory Application was not filed for any decision, the appeal having withdrawn, it was taken on record and the ‘Consent Terms’, which parties treated as final decree and in absence of any date shown therein, this Appellate Tribunal merely stated that “we treat it as an agreement reached between the parties on 15th June, 2018.” From bare perusal of the orders passed on 29th May, 2018 and 29th June, 2018, it is clear that no undertaking was given by any of the parties before this Appellate Tribunal. In fact the appeal was allowed to be withdrawn in view of the ‘Consent Terms’ reached between the parties. Similar issue fell for consideration before the Hon’ble Supreme Court in ‘Babu Ram Gupta vs. Sudhir Bhasin and another” [1979 (4) TMI 164 - SUPREME COURT], wherein the Hon’ble Supreme Court observed that in absence of a written undertaking given by the contemnor to the court or incorporation of the same by the court in its order, mere non-compliance of a consent order or compromise decree, would not amount to civil contempt. The consent terms agreed upon by the parties if not carried upon, can be a ground for execution of a compromise decree or the ‘Consent Terms’ but it cannot be a ground for initiation of a contempt proceeding. This Appellate Tribunal had not gone in to merit and allowed the appeal to be withdrawn on 29th May, 2018 in view of the’ consent terms’ reached between the parties. In the disposed of appeal, Interlocutory Application was filed to show that the parties have reached the final consent terms, but there was no undertaking given by any party before this Appellate Tribunal nor any direction was issued - Petitioners filed the Contempt Petitions for execution of their ‘consent terms’, which will be apparent from the fact that companies namely ‘Reliance Communications Infrastructure Limited’; ‘Reliance Infratel Limited’ and Reliance Communications Limited, have also been impleaded as contemnors, though it is not maintainable against the companies. No case is made out for initiation of contempt proceedings against any of the alleged ‘Contemnors’ – ‘Respondents’ - application dismissed.
|