ALORA TRADING COMPANY LIMITED Vs. SANJAY GHAI

JUDGEMENT

(1.) . By virtue of the present petition under the Contempt of Courts Act, this Court is called upon to exercise its jurisdiction under Section 2(b) of the Contempt of Courts Act against the contemner/respondent for willful disobedience of the orders of the Court dated 10/02/2000 and 15/02/2000 in Suit No.2528/98.

(2.) . A short background of the facts giving rise to the present petition is that the petitioner and the respondent/contemner had entered into a compromise and on the joint application moved under Order 23 Rule 3 CPC, compromise was recorded in the suit and vide orders dated 15/02/2000 suit was decreed in terms thereof. As per the terms of the compromise, respondent had agreed to pay a sum of Rs.36,30,200.00 by way of cheques in thirty three equal monthly instalments of Rs. 1,10,000.00 each. This amount was payable w.e.f. 10/03/2000. The first two cheques of Rs. 1,10,000.00 each, when presented to the bank, were dishonoured on 11/04/2000 on the ground of insufficiency of funds. The respondent/ contemner after entering into compromise and having made a statement before the Court to abide by the terms thereof, failed to comply with the consent decree passed by the Court. The petitioner instead of taking out Execution, filed the present contempt petition. In order to initiate the contempt proceedings, prima facie case for contempt has to be made out. Though the respondent had appeared in these proceedings through counsel, but no show causa notice for contempt was issued against him.

(3.) . Contempt is alleged to have been committed by the respondent for non-compliance of the orders dated 10th February, 2000 and 15/02/2000 passed in the Suit. The parties moved a joint application under Order 23 Rule 3 CPC which came up for hearing on 10/02/2000. The statement of the respondent, recorded on the said application, is reproduced as under :