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2021 (2) TMI 892

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..... te R 1 to 3 Shri Zibi Jose, PCS for R4,R8 to R11. No appearance for other respondents ORDER The applicant/ 2nd petitioner in TCP/34/KOB/2019- C. K. Sibi filed this Contempt Petition under Section 425 of the Companies Act,2013 against M/s. Vijaya Hospitality and Resorts Limited and 12 others to initiate Contempt Proceedings against the Respondents herein and to punish them for violation of the interim orders dated 27.09.2019 and 31.12.2019 passed by this Tribunal. 2. The applicant herein, is one of the promoter shareholders of the 1st and 2nd Respondent Companies. He was a founder Director in both the Companies. The applicant along with nine others filed TCP. 34/KOB/2019 alleging oppression and mismanagement in the 1st and 2nd Respondent .....

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..... as Director of the 1st and 2nd Respondent Companies, and vide order dated 31.12.2019, this Tribunal passed the following order: "(i) The respondent companies to reinstate Shri C.K.Sibi, the applicant herein, as Director of the 1st and 2nd respondent companies forthwith, until further orders (ii) The Respondent companies are directed to take necessary steps including filing of DIN with ROC in consonance with this order immediately; ...." 7. Pursuant to the above order, the applicant herein was reinstated as Director of the 2nd Respondent Company, however no steps have been taken to reinstate the applicant as Director in the 1st Respondent Company. However, during argument in this matter, the learned counsel for the applicant submitted th .....

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..... r:- "2. Definitions In this Act, unless the context otherwise requires XXXXX (b) "civil contempt" means willful disobedience to any judgment, decree, direction, order, writ or other process of a court or willful breach of an undertaking given to a court;" 11. In the case of Niaz Mohammad & Ors. vs. State of Haryana and Others, (1994) 6 SCC 332, the Hon'ble Apex Court held that while the contemnors had not obeyed the judgment and released the salary, but this disobedience was not wilful so as to amount to a civil contempt and the Court drew a distinction between a Court executing an order and punishing for contempt. The relevant portion of the said judgment is as under: "The Civil Court while executing a decree against the judg .....

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..... c intent to fail to do something the law requires to be done, that is to say, with bad purpose either to disobey or to disregard the law. It signifies a deliberate action done with evil intent or with a bad motive or purpose. Therefore, in order to constitute contempt, the order of the court must be of such a nature which is capable of execution by the person charged in normal circumstances. It should not require any extraordinary effort nor should be dependent, either wholly or in part, upon any act or omission of a third party for its compliance. This has to be judged having regard to the facts and circumstances of each case. ..." 14. Traversing through the judgments referred to above, what emerges is that in order to hold a person guil .....

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