PALLAV SHETH Vs. CUSTODIAN

JUDGEMENT

(1.) These appeals by special leave are against the judgment of the Special Court constituted under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter referred to as "the Special Court Act") whereby the appellant has been held to have committed civil contempt as defined under Sec. 2(b) of the Contempt of Courts Act, 1971 and sentenced to undergo simple imprisonment for a period of one month and a fine of Rs. 2000.

(2.) M/s. Fairgrowth Financial Services Limited was notified on 2-7-1992 under the provisions of the Special Court Act. As a result thereof, all properties belonging to the said notified party stood automatically attached.

(3.) The Custodian appointed under the Special Court Act filed Miscellaneous Application No. 193 of 1993 and sought a decree for Rs. 50 Crores on behalf of the notified party against Pallav Sheth, the appellant herein. On 24-2-1994 the appellant submitted to a consent decree for a sum of Rs. 51.49 crores which was to be paid in instalments. Rs 2.00 crores were paid, but thereafter, the appellant defaulted in the payment of further instalments.