Mr. Tenny Jose & Ors. vs State Bank Of India

These are three Contempt Appeals, being Contempt Appeal (AT)(CH)((Ins) No.283/2024, Contempt Appeal No. (AT)(CH)(Ins) 282/2024 and Contempt Appeal No. (AT)(CH)(Ins) 284/2024.

As a matter of fact, the alleged Contemnor that is, the Appellant herein puts a challenge to the Impugned Order of 26^th June 2024, as it was rendered in Contempt Petition, which stood initiated before the Learned Adjudicating Authority, under Section 425 of the Companies Act, to be read with Section 12/14 of the Contempt of Courts Act, alleging thereof non-compliance of the Order dated 25^th January 2023. The Learned Adjudicating Authority after apparently finding that, the allegation pertaining to the non-compliance of the Judgment of 25^th January 2023 is being made out, had passed the following order:

In fact, under Rule 15 of the Contempt of Courts Rules, the Contempt Proceedings are to be held as per Chapter XXI of the Code of Criminal Procedure, being the summary proceedings. The Learned Counsel for the Appellant expresses an apprehension that, under Clause I of Para 10 as extracted above. Since the Adjudicating Authority has used the word ‘allowed’ it amounts to allowing of the Contempt Petition, which will automatically then amount to the passing of an order of punishment.

This may not be the correct interpretation which has been given by the Learned Counsel for the Appellant, because the use of word ‘allowed’ under the first clause of Para 10, has to be harmoniously construed to be understood, with sub para 2 of para 10, as the first clause, is interdependent upon the second clause of para 10.

The word ‘allowed’ used herein should not be and will not be also construed and understood as to amount to passing of an order of punishment. It only infers that, the Adjudicating Authority has expressed a prima-facie opinion that, the ingredients of Section 12/14 of the Contempt of Courts Act, has been made out and for the purposes of which, the charges have been framed whereby under Clause 2, on which the Appellants has been called upon to file a reply to the charge and it is only upon submission of the charge, and upon consideration of reply of the Charge, the Learned Adjudicating Authority, is yet to take a call of passing an order under Section 425 of the Companies Act to be read with Section 12/14 of the Contempt of Courts Act, imposing a punishment, if legally required.

At this stage, the Impugned Order which is put to challenge by the Appellant is not an order of punishment, which could attract the provisions contained under Section 19 (the Appellate Provisions under the Contempt of Courts Act) because no punishment has been proposed as such nor the same has been imposed as of now. On a simpliciter reading of the Impugned Order, the Appellant has been only called to reply to the charge which has been framed, and it is obvious that only after submission of the reply, to the charge all arguments as extended by the Learned Counsel for the Appellant, with regards to the order of issuance of notice on the charge being in violation to the provisions contained under Section 425 of the Companies Act, action may be taken under the Contempt Proceedings, being in violation of the principle of natural justice would be an aspect which is yet open to be argued by the Appellant while filing the Reply on the charge and if, any such ground is taken by the Appellant, before the Learned Adjudicating Authority, it goes without saying that, the Learned Adjudicating Authority, will have to deal with it, in accordance with law, prior to arriving at a conclusion as to whether at all any deliberate and intentional contempt is made out or not against the appellant.

It goes without saying that to bring an opposite party or the contemnor within the ambit of provisions of Contempt of Courts Act, there has had to be a prima facie satisfaction, to be recorded with regards to an intentional and deliberate contempt, prior to passing any orders of punishment as contemplated under the Act and these would be the elements which would be considered by the Learned Adjudicating Authority, while the Appellant submits the reply in compliance of sub clause 2 of para 10 of the Impugned Order dated 26.06.2024.

Subject to the above, the ‘Contempt Appeal’ would stand disposed of.