STATE BANK OF INDIA Vs. SHRI AVTAR SINGH

JUDGEMENT

(1.) THE Respondent secured a loan of Rs. 9,25,000/ - from the Petitioner -bank against the security of his machinery and other raw materials. He removed the machinery by demolishing the boundary wall without the permission of the bank, sold it and misappropriated the sale consideration. Consequently, the bank got registered a criminal case against him on June 11, 1985, at Police Station, Sector 26, Chandigarh. The Respondent moved an application for anticipatory bail which was rejected by the Sessions Judge, Chandigarh. He then filed two petitions, Criminal Miscs. Nos. 3441 -M and 3980 of 1985, in this Court. He was allowed anticipatory bail by Surinder Singh, J. on his giving an undertaking on July 22, 1985 that after the passing of the order, he shall dispose of some property owned by him and clear the debt of the bank within six months. He having failed to honour his undertaking, the Petitioner -bank moved this petition for taking proceedings under Sections 11 and 12 of the Contempt of Courts Act, 1971.

(2.) ON notice having been issued, the Respondent contested the petition. He has denied that any undertaking, as alleged, was given by him. He has further pleaded that in the voluntary statement made by him, he only admitted his liability and offered to intimate the bank of any transfer of property made by him. The other facts noticed above, however, were admitted.

(3.) FROM a bare perusal of the above statement, it is apparent that the Respondent had given a clear undertaking that he would pay the amount due to the bank within six months. As it is not disputed that he has not made any payment to the bank, he has Failed to honour the undertaking and is, thus, held guilty or the contempt of this Court.