TMI Blog1995 (2) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... g ₹ 9.82 crores. As per the conditions of the auction, Skipper deposited 25% of the bid amount. The said bid was confirmed by the DDA on 14.10.1980. Skipper was called upon to make the balance of payment of 75% of the bid amount within 90 days as per the conditions of the auction. 2. The Government of India issued directions to the DDA to accept the request of Skipper and to grant an indulgence to it and directed the DDA to reschedule the recovery of 75% of the bid amount with interest from the Skipper. Consequent to this, DDA called upon the Skipper to enter into fresh agreement, licence agreement and furnish bank guarantees in compliance with the directions of the Central Government. 3. On 11.8.1987, Skipper entered into a licence agreement, paid 50% of the original bid and secured payment of the balance 50% of the bid and B interest at the rate of 18% per annum thereon by submitting bank guarantee for ₹ 9.28 crores, in terms of which a sum of approximately 1.944 crores was required to be paid as each installment. A total of 5 installments was payable every six months, the first being due on 15.9.1987 and the last on or about 15.9.1989. 4. Against the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruct. The Court extended the time by one month on 16.4.1990, affording liberty to the DDA to encash the bank guarantee. The bank guarantee could not be encashed because it was conditional. By then the entire monies had fallen due. Those amounts had not been paid. The DDA filed SLP (C) Nos. 6338-6339 of 1990 against the interim order dated 19.3.1990 and 16.4.1990 passed by the High Court of Delhi. By an order dated 3.5.1990 this Court stayed further construction and made it conditional upon payment of ₹ 1.944 crores. 10. Suit No. 1875 of 1990 was filed by the Skipper for a direction that the DDA ought not to insist upon payment by cash or draft and ought to be directed to encash bank guarantee. The learned Vacation Judge issued orders directing the DDA to invoke the bank guarantee. However, the suit was ultimately dismissed. 11. On 21.12.1990, a Division Bench of the Delhi High Court dismissed CWP No. 2371 of 1989 directing Skipper to pay the DDA by cash or demand draft a sum of ₹ 8,12,68,789 within 30 days; to stop construction till payment is made; and in the event of non-payment by the Skipper DDA would be entitled to enter upon the property and forfeit the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e principal amount and interest payable by Skipper; (iii) for a declaration that the present calculations are wrong; (iv) for a declaration that re-entry/re-possession and determination of the rights of Skipper are bad in law and non-est; (v) for a declaration that all dues have been paid by skipper to the DDA; and (vi) a declaration that clause 15 of the Licence Agreement dated 11.8.1987 is non-est and bad in law. 18. On service of notice, DDA filed application, LA. No. 8500 of 1993 in Suit No. 770 of 1993, for rejection of the plaint as all the issues raised by Skipper were res judicata and even otherwise the plaint was barred by law. The said application is pending disposal. 19. On 8.11.93, DDA issued notices for auction of the said property. The 2nd respondent sought to implead itself in the suit and on 1.12.1993 filed an application for stay of auction which was opposed by the DDA. 20. On 9.12.1993, a learned Single Judge of the Delhi High Court allowed the auction to proceed with and restrained the DDA from accepting or confirming the bid at the auction scheduled for 10.12.1993. Aggrieved by this Order DDA filed SLP (C) No. 21000 of 1993 against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter amicably. The F deponent instructed the counsel to make averment that the company is ready and willing to make the payment. The counsel has categorically stated in the application that the company is ready and willing to pay the amount to DDA as demanded by them in installments. 24. The company also wrote a letter dated 10th July, 1993 to all its valued customers apprising them about the dispute with DDA. In the letter also the company made it amply clear that the matter can be resolved amicably and for that purpose funds are required. It was requested that the valued customers shall make the payment of amounts due against them. The bank draft/cash order be sent to the company in the name of DDA. The company wanted to hand over the drafts to DDA. 25. On this explanation, it is urged that there is no intentional or deliberate flouting of the order dated 29,1.1991 passed by this Court. 26. The order by 29.1.1991 was passed after the counsel for Delhi Development Authority expressed an apprehension that the answering respondent would sell away or otherwise dispose of the plot to a third party and abscond. The answering respondent- deponent was personally pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. To preclude the answering respondent from in any manner giving away physical possession of either the plot or the proposed building (yet to come up) the order of 29.1,1991 was passed. It is most respectfully submitted that at no time during the proceedings, was any reference made or intended to prohibit or in any manner fetter the booking of space in the building or collecting money in respect thereof. The fact was that this was the common collective and collided understanding of all the parties including the Delhi Development Authority is evident from the fact that the bookings were done before January, 1991 and after January, 1991 to the knowledge of everyone without any objection, protest and demur. Indeed in the numerous court proceedings in different courts including the Hon'ble Supreme Court after 1991 not the slightest grievance was made and no contempt petition was ever moved by Delhi Development Authority (till the present last round of proceedings). Indeed, it is most respectfully submitted that had answering respondent known or remotely contemplated that even booking sought to be fettered, it would have either moved the Hon'ble Court for clarification or w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 29.1.1991; By entering into agreements contemners were not creating rights in favour of third parties. The speculative purchasers being fully aware of the legal proceedings yet chose to purchase the property which agreements, if ultimately, did not fructify into sale, they would be entitled to only refund. Before 29.1.1991 1,000 agreements were entered into and after 29.1.1991 1,750 agreements were entered into. Out of these 1,750 agreements, the agreements in respect of 835 cases were executed while in the case of remaining 915, the agreements have not been executed. This is the factual position. Since the DDA did not take out the contempt application, the contemners were lulled into the belief that what they were doing was right. Further, the exact scope of the order that the contemners should not even enter into contract was not understood by the contemners properly. Creation of right could only mean, in the context, an obligation to refund. 33. The notice for contempt has been issued practically after nearly three years, if such a notice had been issued by the High Court he could have pleaded limitation contained under Section 20 of the Contempt of Courts p Act, 1971, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gupta [1971]1SCR626 pointed out that it cannot be disputed that in a case of contempt of Supreme Court, the Court issued notice suo moto. 40. About the nature of power, this Court referring to the Privy Council ruling in Sukhdev Singh Sodhi v. The Chief Justice and Judges of the Pepsu High Court [1954]1SCR454 , held : Finally, in Parashuram Detaram v. Emperor the Privy Council said that this summary power of punishing for contempt.....is a power which a court must of necessity possess. 41. In this case, as the notice dated 29.11.1994 indicates, it consists of : (1) Civil Contempt and (2) Criminal Contempt. 42. Civil contempt is defined under Section 2(b) of the Act. Thus, any p wilful disobedience to the order of the court to do or abstain from doing any act is prima facie a civil contempt. Civil Contempt arises where the power of the Court is invoked and exercised to enforce obedience to orders of the Court. 43. On the contrary, criminal contempts are criminal in nature. It may Q include outrages on the Judges in open Court, defiant disobedience to the Judges in Court, libels on Judges or Courts or interfering with the courts of justice or any act wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 636. Thereafter, Suit No. 770 of 1993 was filed practically for the same relief which formed the subject-matter of the earlier writ petition, CWP No. 2371 of 1989. 49. After the dismissal of SLP (C) 186 of 1991, the DDA re-entered and took physical possession of the property on 10.2.1993, free from all encumbrances, forfeiting the monies paid by the contemners. Yet prayer No, 1 in the suit is for injunction restraining the DDA from interfering with title and possession. 50. Under the terms of the licence deed dated 11th August, 1987 entered into between (the licensor) and the contemners (licensee), it was clearly stipulated at paragraphs 1 and 2 as under : 1. That the licensee shall have licence to enter upon the plot described hereinabove for a period of two and half years from the date of execution of this licence only for purposes of starting construction of the building in accordance with the sanctioned building plans. 2. That the licencee shall not be deemed to have any right, title or interest in the said plot nor shall be have any right to grant such a right in favour of any persons. Legal possession and ownership of the said plot shall remain with the li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. In Advocate General, State of Bihar Madhya Pradesh Khair Industries MANU/SC/0504/1980 : 1980CriLJ684 , this Court observed : While we are conscious that every abuse of the process of court may not necessarily amount to contempt of court, abuse of the process of the court calculated to hamper the due course of a judicial proceeding or the orderly administration of justice, we must say, is a contempt of court. It may be that certain minor abuses of the process of the court may be suitably dealt with as between the parties, by striking out pleadings under the provisions A of Order 6, Rule 16 or in some other manner. But, on the other hand, it may be necessary to punish as a contempt, a course of conduct which abuses and makes a mockery of the judicial process and which thus extends its pernicious influence beyond the parties to the action and effects the interest of the public in the administration of justice. 54. Again as stated by Sir John Donaldson in Attorney General v. Newspaper Publishing Pic, C.J. Miller Contempt of Court 1989 Clarendon Press, Oxford : An action for contempt of court arose : where the conduct complained of is specifically intended to impede or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e statement in sub-paragraph (k) of the additional affidavit extracted above. A curious argument was put forth that by mere entering into agreement no interest is created in the immovable property. Of course, this stems from Section 54 of the Transfer of Property Act. But, does not the agreement holder have a right to get another document, namely, the sale deed? Equally, does he not have a right to enforce the agreement and seek specific performance thereof? It is preposterous to suggest that speculative purchasers came forward to purchase the property and their right is only to refund as per the terms of the agreement. For a moment, we are not on the nature of rights of the unintending purchasers. The question in whether the said clause (iv) of the order dated 29.1.91 has been flouted? This is not a case of a stray act but deliberate repetitive by making hard bargains by dubious methods. It is fallacious to contend that because of legal opinion the contemners thought of entering into such agreements, would not amount to inducting any person in the building or would not amount to creation of any right in favour of any third party. This is an intentional act to cheat the public with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contemners have tendered apology. This apology is coming forth after sensing that the adventures have turned out to be misadventures, realising that the contemners have ended up in a cul-de-sac.-An apology is not a weapon of defence forged to purge the guilt of the offences nor is it intended to operate as a universal panacea. It is intended to be evidence of real contriteness , the manly consciousness of a wrong done, of an injury inflicted, and the earnest desire to make such reparation as lies in the wrong-doer's power. We do not find the apology to be so in this case. The conduct of contemners is highly reprehensive. The question now is what sentence we should impose on the contemners. Here, it is necessary to bear in mind that the second respondent is the wife of the first respondent. She does not seem to have played any active role in all these transaction and events. As an Indian wife, dutiful and obedient, she seems to have only followed the dictates and desires of her husband. In the process she has done no more than lending her name both as a Director to the Skipper as well as to the various acts done by him in the name of the company. It will be unrealistic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ail to give the bank guarantee by 31st March, 1995 as aforesaid, the sentence of imprisonment will become enforceable at once. (4) No application for extension of time either to furnish the bank guarantee or to make the payment as aforesaid, will be entertained by this Court. (5) The contemners shall not leave the country without the express permission of this Court. (6) List of properties given by the contemners is taken on record. The contemners will also file a list of properties held by their sons and unmarried daughters within one week from today. (7) If and when any property that is attached under this Order is sought to be alienated or encumbered to raise money to pay the liability of ₹ 11 crores stated above, the contemners will be at liberty to approach the Court for permission to do so. (8) The attachment of the properties and the bank accounts shall stand raised on the contemners furnishing the bank guarantee as aforesaid. (9) The order with regard to the disbursal of the amount deposited will be passed after the amounts are deposited as aforesaid. 71. The Contempt petition is ordered in the above terms. - - TaxTMI - TMITax - Indian Laws ..... X X X X Extracts X X X X X X X X Extracts X X X X
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