Enforcement Of Litigant's Undertaking Continues Notwithstanding Disposal Of Matter Till Such Undertaking Is Discharged: Calcutta High Court

On 22.11.2024, a Division Bench of the High Court at Calcutta comprising of Justice Joymalya Bagchi and Justice Gaurang Kanth, while dismissing an appeal from a contempt petition filed against the partners of M/s Bengal Industrial Corporation by Rajasthan Fertilisers & Chemical Corporation Limited held “contempt proceeding has been instituted to enforce an undertaking given by the contemnors in GA/2/2022. Enforcement of an undertaking given by a litigant would continue notwithstanding disposal of a matter till the undertaking is discharged.”

The judgment emanates from a long and protracted eviction proceeding from a prime commercial location at the heart of Kolkata – R.N.Mukherjee Road for an office space of 2400 sq. ft. In view of the default in rent, an eviction notice under section 106 of the Transfer of Property Act, 1882 (as amended) was issued which led to the Suit for eviction and mesne profits.

In an interim application filed in the Suit, the contemnors had given their Undertaking to pay occupational charges from April 2020 till April 2022 in twelve equal monthly instalments, the first of which was to commence from May 2022, as recorded in Order of 06.05.2022.

In as much as the Contemnors failed to make the payment in lieu of their Undertaking, the contemnors took out an application for modification of the Order dated 06.05.2022 on grounds of financial crisis which was dismissed. Subsequently, a contempt proceeding was initiated by Rajasthan Fertilisers & Chemical Corporation Limited as the entire dues had not been paid resulting in willful and deliberate disobedience of the Order dated 06.05.2022.

Although the Contempt proceeding was filed in the year 2023, Warrants of Arrest were issued on 24.01.2024 against the contemnors, post which 2 out of the 3 partners/contemnors appeared before the Hon'ble Court. Due to the continued “evasive and dilatory tactics” of the contemnors, another warrant of arrest was issued by the Hon'ble Court on 12.08.2024 when both contemnors were arrested and produced before the Court and the direction to pay was passed.

Aggrieved by such payment direction, the instant Appeal was filed on the pivot that once the Decree has been passed, the interim order whose violation had given rise to the contempt proceeding, no longer survives.

The Court ascertained that even though the decree for eviction was passed, the suit was pending with regards to mesne profits, hence it was partly decreed and the interim order passed in GA/2/2022, therefore, survives. Even otherwise, a contempt proceeding was initiated to enforce the undertaking of the contemnors and the same would continue regardless of the disposal of the subject suit till the undertaking is discharged.

Advocate for Contemnors/Tenants: Mr. Arindam Chattopadhyay, Mr. Soumya Ray, Mr. Soumik Dey, Ms. Anwesha Saha, Mr. Pramit Panda, Advocates

Advocate for Respondent/Landlord: Ms. Urmila Chakraborty, Mr. Amit Meharia, Ms. Paramita Banerjee, Ms. Subika Paul and Mr. Tamoghna Chattopadhyay, Advocates (MCO Legals – Meharia & Company).