Vaibhav Khandelwal, Liquidator Of Mohan Motor Dealers Private Limited vs Gayetri Singh & Ors.

O R D E R

“In view of the aforesaid facts and circumstances, it is most respectfully prayed that this Hon’ble Tribunal may be pleased to:

a)

An appropriate Order(s) holding the Respondents/Contemnors to be in contempt of the said Order dated 30.01.2024 passed by this Hon'ble Tribunal in I.A.(IB) No. 360/KB/2022 in C.P. (IB) NO. 1685/KB/2019 and/or initiating requisite contempt proceedings against the Respondents/Contemnors for their wilful and intentional disobedience of the said order dated 30.01.2024;

b)

An appropriate order(s) directing/compelling the Respondents/Contemnors herein to ensure compliance with the letter and spirit of the order/judgment dated 30.01.2024 passed by this Hon'ble Tribunal in I.A.(IB) No. 360/KB/2022 in C.P. (IB) NO. 1685/KB/2019;

c)

Rule nisi be issued calling upon all the Respondents/Contemnors, and each of them, to show cause as to why they should not be fined Rs. 2000/-(Rupees Two Thousand only) and/or be sentenced to imprisonment and/or detention in civil prison for having wilfully, deliberately, intentionally and contumaciously disobeyed and/or violated the said order/judgment dated 30.01.2024 passed by this Hon'ble Tribunal in IA (IB) No. 360/KB/2022 in C.P. (IB) NO. 1685/KB/2019;

d)

If the Respondents/Contemnors fail to show sufficient cause as prayed for in prayer/relief c) then the rule issued as per prayer (b) hereinabove be made absolute and fine be imposed on the respondents/contemnors, and each of them, of Rs. 2000/- (Rupees Two Thousand only) and/or they be sentenced to imprisonment for 6 (six) months and/or they be ordered to be held in detention in civil prison for 6 (six) months;

e)

An appropriate order(s) directing/compelling the Respondent Nos./Contemnor Nos. 1 and 2 herein to ensure, jointly and/or severally, compliance with the letter and spirit of the order/judgment dated 30.01.2024 passed by this Hon'ble Tribunal in I.A.(IB) No. 360/KB/2022 in C.P. (IB) NO. 1685/KB/2019 by requiring them to immediately cause/ensure requisite payment of Rs. 4,68,75,262/- (Rupees Four Crore Sixty Eight Lacs Seventy Five Thousand Two Hundred and Sixty Two only) to the liquidation estate of the Corporate Debtor, i.e. to the said bank account, in compliance with the directions of this Hon'ble Tribunal pronounced vide the said Order dated 30.01.2024;

f)

An appropriate order(s) directing/compelling the Respondent Nos./Contemnor Nos. 3 and 4 herein to ensure, jointly and/or severally, compliance with the letter and spirit of the order/judgment dated 30.01.2024 passed by this Hon'ble Tribunal in I.A. (IB) No. 360/KB/2022 in C.P. (IB) NO. 1685/KB/2019 by requiring them to immediately cause/ensure requisite payment of Rs. 2,56,81,497 (Rupees Two Crore Fifty Six Lacs Eighty One Thousand Four Hundred and Ninety Seven only) to the liquidation estate of the Corporate Debtor, i.e. to the said bank account, as per the directions of this Hon'ble Tribunal pronounced vide the said Order dated 30.01.2024;

g)

An appropriate order(s) directing/compelling the Respondent No./Contemnor No. 3 herein to ensure compliance with the letter and spirit of the order/judgment dated 30.01.2024 passed by this Hon'ble Tribunal in I.A.(IB) Νο. 360/KB/2022 in C.P. (IB) NO. 1685/KB/2019 by requiring him to immediately cause/ensure requisite, separate payment of Rs. 1,02,58,637/- (Rupees One Crore Two Lacs Fifty Eight Thousand Six Hundred and Thirty Seven only) to the liquidation estate of the Corporate Debtor, i.e. to the said bank account, as per the directions of this Hon'ble Tribunal pronounced vide the said Order dated 30.01.2024;

h)

An appropriate order(s) directing/compelling the Respondent No./Contemnor No. 5 herein to ensure compliance with the letter and spirit of the order/judgment dated 30.01.2024 passed by this Hon'ble Tribunal in I.A.(IB) No. 360/KB/2022 in C.P. (IB) NO. 1685/KB/2019 by requiring him to immediately cause/ensure requisite payment of Rs. Rs. 13,22,427/-(Rupees Thirteen Lacs Twenty Two Thousand Four Hundred and Twenty Seven only) to the liquidation estate of the Corporate Debtor, i.e. to the said bank account, as per the directions of this Hon'ble Tribunal pronounced vide the said Order dated 30.01.2024;

i)

Ad-interim orders in terms of prayers/relief (a) to (h) above.

j)

Costs of and/or incidental to the present application, including advocates’ fees incurred by the Applicant/Liquidator, be borne by the respective Respondents/Contemnors;

k)

Such further order and/or orders be passed and/or direction and/or directions be given as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the present case and in the interest of justice;”

“6.21

In light of the aforementioned facts, findings and the case law cited above, we hereby allow the application and direct that:

i.

Respondent No. 1 will pay Rs. 1,44,00,000/- to the liquidation estate;

ii.

Respondent No. 2 will pay Rs. 1,64,94,271/- to the liquidation estate;

iii.

Respondent No. 3 will pay Rs. 1,17,24,262/- to the liquidation estate;

iv.

Respondent No. 4 will pay Rs. 2,56,81,497/- to the liquidation estate;

v.

Respondent No. 5 will pay Rs. 42,56,729/- to the liquidation estate.

vi.

Respondent No. 7 will pay Rs. 1,02,58,637/- to the liquidation estate;

vii.

Respondent No. 9 will pay Rs. 1322427/- to the liquidation estate; The aforementioned payments shall be completed within 15 days of the instant order.

6.22

The amount shall be deposited in the liquidation estate of the Corporate Debtor."

5. ADMITTED FACTS:

ANALYSIS AND FINDINGS

Companies Act, 2013

425.

Power to punish for contempt.— The Tribunal and the Appellate Tribunal shall have the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the Contempt of Courts Act, 1971(70 of 1971),which shall have the effect subject to modifications that

(a)

the reference therein to a High Court shall be construed as including a reference to the Tribunal and the Appellate Tribunal; and

(b)

the reference to Advocate-General in section 15 of the said Act shall be construed as a reference to such Law Officers as the Central Government may, specify in this behalf.

11. Power of High Court to try offences committed or

offenders found outside jurisdiction.—A High Court shall have jurisdiction to inquire into or try a contempt of itself or of any court subordinate to it, whether the contempt is alleged to have been committed within or outside the local limits of its jurisdiction, and whether the person alleged to be guilty of contempt is within or outside such limits.

12.

Punishment for contempt of court.—(1) Save as otherwise expressly provided in this Act or in any other law, a contempt of court may be punished with simple imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both: Provided that the accused may be discharged or the punishment awarded may be remitted on apology being made to the satisfaction of the Court.

Explanation.—An apology shall not be rejected merely on the ground that it is qualified or conditional if the accused makes it bona fide.

(2)

Notwithstanding anything contained in any law for the time being in force, no court shall impose a sentence in excess of that specified in sub-section (1) for any contempt either in respect of itself or of a court subordinate to it.

(3)

Notwithstanding anything contained in this section, where a person is found guilty of a civil contempt, the court, if it considers that a fine will not meet the ends of justice and that a sentence of imprisonment is necessary shall, instead of sentencing him to simple imprisonment, direct that he be detained in a civil prison for such period not exceeding six months as it may think fit.

(4)

Where the person found guilty of contempt of court in respect of any undertaking given to a court is a company, every person who, at the time the contempt was committed, was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the contempt and the punishment may be enforced, with the leave of the court, by the detention in civil prison of each such person: Provided that nothing contained in this sub-section shall render any such person liable to such punishment if he proves that the contempt was committed without his knowledge or that he exercised all due diligence to prevent its commission.

(5)

Notwithstanding anything contained in sub-section (4), where the contempt of court referred to therein has been committed by a company and it is proved that the contempt has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the contempt and the punishment may be enforced, with the leave of the court, by the detention in civil prison of such director, manager, secretary or other officer.

Explanation.—For the purpose of sub-sections (4) and (5),— (a) “company” means any body corporate and includes a firm or other association of individuals; and (b) “director”, in relation to a firm, means a partner in the firm.

Rule 11: Inherent Powers- Nothing in these rules shall be deemed to limit or otherwise affect the inherent powers of the Tribunal to make such orders as may be necessary for meeting the ends of justice or to prevent abuse of the process of the Tribunal.