'Wilful' Disobedience For Contempt Excludes Casual, Bona Fide Acts, Does Not Encompass Negligent Actions: Delhi High Court

The Delhi High Court has observed that “wilful” disobedience of a judicial order by a contemnor excludes casual, accidental, bona fide or unintentional acts or genuine inability.

“Wilful acts does not encompass involuntarily or negligent actions. The act has to be done with malice or without a justifiable excuse or stubbornly, obstinately or perversely. The deliberate conduct of a person means that he knows what he is doing and intends to do the same,” Justice Dharmesh Sharma said.

The court added that there has to be a calculated action with evil motive on the part of the contemnor.

It said that even if there is a disobedience of an order, the contemnor cannot be punished if such disobedience is the result of some compelling circumstances under which it was not possible for the contemnor to comply with the order.

“Committal or sequestration will not be ordered unless contempt involves a degree of default or misconduct,” the court said.

Justice Sharma made the observations while dismissing a plea moved by an entity, Kuehne+ Nagel Private Limited, seeking contempt action against a Managing Director of another company against whom a case was filed for winding up due to non-payment of dues.

The petitioner entity moved a contempt plea against the Managing Director of SVOGL Oil & Gas Energy Ltd for non-compliance of an order passed by the court in February 2014 and for failure to make complete payment of dues as was undertaken in the settlement arrived at between them.

Rejecting the plea, Justice Sharma found merit in the explanation offered by the Managing Director that he had all the bonafide intention to make payment as per the undertaking given by him on behalf of the company in liquidation but for subsequent proceedings before the NCLT.

“Suffice it to observe that it is not a case of intentional violation or wilful disobedience of the order passed by this Court to initiate contempt action against the respondent,” the court said.

The court said that it would be open to the parties to pursue their claims in the execution proceedings or any other proceedings, as may be permissible in law, in respect of the issues between them.

“In such proceedings, all aspects can be considered by the forum/court concerned on merits in accordance with law. In view of the foregoing discussion, the present Contempt Petition is dismissed,” the court said.

Title: M/S KUEHNE + NAGEL PVT. LTD. v. MR. PREM SINGHEE

Citation: 2023 LiveLaw (Del) 1306

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