Judgment:
(Arising Out of SLP (C) NO. 15224 OF 2006)
Dr. AR. Lakshmanan, J.
- Leave granted.
The above appeal was
filed by All Bengal Licensees
Association, Kolkata against 1) Raghabendra Singh,
Principal Secretary, Excise Department, Govt. of West
Bengal 2) Tallen Kumar, Excise Commissioner, Excise
Department, 3) Manoj Kumar Panth, District Magistrate
and Collector, 24-Parganas 4) Parvez Siddique, Addl.
District Magistrate, 24-Parganas as contesting
respondents and 5) Pradyut Kumar Saha, General
Secretary of All Bengal Excise Licensees Association,
Kolkata as proforma respondent.
The above appeal is directed against the final
judgment and order dated 29.08.2006 of the Calcutta
High Court passed in CC No. 62 of 2005 arising out of
Writ Petition No. 2248 of 2004 whereby a learned Single
Judge of the said High Court has dismissed the
application for contempt filed by the appellant herein.
According to the appellant, the contesting respondents
have deliberately and willfully violated and were in utter
disregard of the solemn order dated 04.01.2005,
19.01.2005 and 20.01.2005 passed by Hon'ble Mr.
Justice Pranab Kumar Chattopadhyay in Writ Petition
No. 2248 of 2004 filed by All Bengal Excise Licensees
Assn. & Anr. Vs. State of West Bengal & Ors.
The background facts are as under:
By an order dated 04.01.2005, a learned Single
Judge passed an interim order to the effect that the
respondent-authorities will be at liberty to process the
applications in respect of grant of licenses for excise
shops but no final selection in respect of such shops
shall be made without obtaining specific leave of the
Court. The High Court made it clear that the
respondent-authorities will not hold any lottery for the
purpose of final selection of the excise shops in question
without obtaining further orders from the High Court.
The said order dated 04.01.2005 was passed after
hearing and in the presence of the learned advocate for
the respondents.
The said interim order dated 04.01.2005 was
extended by the order dated 19.01.2005 until further
orders by the High Court.
Thereafter, on 28.01.2005 a learned Single Judge
gave direction for filing the affidavit and the said interim
order was further extended until further orders and the
said interim order is still continuing.
The said orders dated 04.01.2005, 19.01.2005 and
20.01.2005 were communicated by the appellant's
advocate's letter dated 15.03.2005 enclosing therewith
the Xerox copies of the signed copies of the said dictated
order. In spite of full knowledge about the said order
each of the respondents, in deliberate and wilful
disregard of the orders, caused an advertisement to be
published in the newspapers for holding lottery for final
selection of excise shops to be held on 20.03.2005,
21.03.2005 and 22.03.2005.
Pursuant to the said advertisement, a lottery has
been held on 20.03.2005 for the purpose of final selection
of the excise shops. It was submitted by the appellants
that from the act and conduct of the respondents, it is evident that
each of them have no regard for the orders dated 04.01.2005, 19.01.2005 and 20.01.2005 passed by
this Court and are deliberately violating the said orders
passed by the High Court and are thus guilty of contempt
of Court. With these allegations, the appellants filed CC
No. 62 of 2005 in the High Court.
The appellant is an Association of Excise Licensees
including the country spirit shop owners. Challenging
the policy decisions for issuance of thousands of excise
licenses for opening of new foreign liquor off shop and
country spirit shops in the State of West Bengal in
violation of the provisions of the Bengal Excise Act, 1909
and the rules framed thereunder, the appellant, amongst
others, moved a writ petition being No. 1982 of 2004 in
the High Court upon notice to the respondents. A copy of
the writ petition was also filed and marked as annexures
in this civil appeal. The High Court (Hon'ble Mr. Justice
Pinaki Chander Ghosh), after hearing the advocates for
the parties on 24.11.2004 passed an order, inter alia as
follows:
" that the respondent authorities will process the
matter but will not finalise and issue the licence
without the leave of the court.
The matter will appear on 9th December, 2004.
Thereafter, the above-mentioned matter appeared in
the list on 09.12.2004 before the very same Judge. The
learned Judge, after hearing the advocates for the
parties, gave a direction to file affidavit and the matter
was directed to appear 4 weeks after vacation and also
further directed that the interim order already passed in
the matter will continue.
Although there was no direction for making any
further advertisement by the respondent-authorities
inviting any application for obtaining excise licenses for
the new excise shops proposed to be give on or about
20.12.2004, some of the members of the appellant came
to know that an advertisement was published on
30.11.2004 in the Bengali Daily newspaper Janashakti
by the Excise Department, Government of West Bengal,
whereby applications had been invited for giving new
licenses for excise including country spirit shops within
the Districts of Coochbehar, Jalpaiguri, North 24
Parganas and Hooghly. The members also came to know
that the Excise Authorities have issued a memo No. 23-5(XX)/2003-04 3268 (21E) dated 07.12.2004 and rest to
the District Magistrates and Collectors that there has
been a proposal for granting supplementary country
spirit license to the existing tari shop owners.
The appellants made
representations before the Excise
Authorities and contended that since the matter is sub-judice, the respondent authorities cannot publish the
said advertisement on 30.11.2005 and cannot issue the
said memo. However, the Excise Authorities have further
decided to hold lottery on 05.01.2005 for allotment of
excise shops including the country spirit and foreign
liquor shops. Immediately after coming to know about
the above-mentioned fact, the North 24 Parganas Excise
Licenses Assn. have moved a writ petition on 30.12.2004
before the vacation Judge of the High Court. In the said
writ petition, the appellant No.1 herein was made a party
respondent. The vacation Judge did not pass any interim
order on the said writ petition against the said order
dated 30.12.2004. The North 24 Parganas Excise
Licencees Assn. preferred an appeal on 30.12.2004 and
the Division Bench of the High Court passed an interim
order on 30.12.2004 to the effect that the processing in
respect of grant of issuance of country spirit license will
continue but finalization and selection will not be made
till 3 weeks after the vacation. However, they made it
clear that finalisation include holding of lottery.
The said
order was restricted to only in the case of District North
24 Parganas. It was submitted that the subject-matter of
writ petition No. 2248 of 2004 is that during the
pendency of earlier writ petition, the respondent-authorities cannot issue any advertisement for inviting
applications for obtaining new excise license including
the country spirit shops and foreign liquor shops and
cannot hold any lottery and further they cannot give the
effect to the proposal for giving supplementary excise
licensees to the tari shops. It was submitted that in
order to frustrate the order dated 24.11.2004, the
respondent authorities have made an advertisement
dated 30.11.2004 and thereby invited applications from
intending candidates from obtaining new licenses in
respect of 4 Districts and further making attempt to hold
lottery in respect of applications already received. In
spite of repeated requests, the respondents have pre-determined to hold the lottery on 05.01.2005 which
amounts to finalization of the applications for granting of
licenses and they are also trying to issue supplementary
licenses to the existing shop owners.
On 04.01.2005, the Court passed the following
order:-
"Let this matter be listed before the regular bench one
week after the Christmas vacation.
In the meantime, let there be an interim order only to
the effect that the respondent authorities herein will be
at liberty to process the applications in respect of
grant of licence for excise shops but no final selection
in respect of such shops shall be made without
obtaining specific leave of this court.
I also make it clear that the respondent authorities will
also not hold any lottery for the purpose of final
selection of the aforesaid excise shops in question
without obtaining further orders from this court.
All parties are to act on a Xerox signed copy of this
dictated order on the usual undertaking."
Again, the interim order was directed to continue
until further orders on 28.01.2005. As already stated,
the counsel for the appellant communicated the said
orders and served upon the respondents the Xerox copies
of the signed copies of the order dated 04.01.2005,
19.01.2005 and 20.01.2005. Although the said interim
order dated 04.01.2005 which has been extended from
time to time and is still continuing the respondents in
utter disregard caused publication of the advertisement
of the newspapers for holding lottery for the purpose of
final selection of excise shops in question. It is also
pertinent to mention here that both the Division Bench of
the High Court order dated 15.03.2005 in APOT No.
770/2004 vacated the interim order passed in the appeal
preferred by the North 24 Parganas Excise Licensees
Assn. but the interim order passed in the writ petition
being No. 2248 of 2004 is relating to any proposed new
excise licenses through out the State of West Bengal is
still continuing. However, in pursuance to the
advertisement, the respondent authorities on 20th March
held lottery for final selection of the aforesaid excise
shops and shall hold further lottery on 22nd and 23rd
March, 2005. It was, therefore, submitted that each of
the respondents deliberately and willfully and in utter
disregard to the orders dated 04.01.2005 held lottery for
final selection of excise shops. It is further submitted
that the respondents are guilty of deliberate and willful
violation of the 3 orders passed by this Court and
committed contumacious act and in spite of full
knowledge about the orders. It was further submitted
that the respondents have scant respect for the orders
passed on all the 3 days in January, 2005 and are
deliberately ignoring the said orders and are thus guilty
of contempt of court. According to the appellant, by the
above-mentioned act and conduct of the
contemnors/respondents the majesty and dignity of the
High Court have been lowered down and, therefore, the
respondents should be suitably dealt with and punished.
It was also further submitted that having regard to the
facts and circumstances of the case, the respondents
should be restrained from holding any further lottery
and/or from giving any effect and/or further effect of the
lottery already held and/or from taking any further steps
for issuance of any excise license to any person so that
the majesty and dignity of the High Court is not lowered
down. In the circumstances, they requested the High
Court to issue rule nisi calling upon the respondents and
each of them to show cause as to why the respondents
and each of them should not be committed to prison or
otherwise be suitably dealt with and/or punished for
deliberate and willful violation and utter disregard of the
solemn orders dated 04/19 and 20.01.2005 passed in
writ petition No. 2248 of 2004.
In the contempt petition, rule was issued on
23.03.2005. The respondents filed an application
praying for discharge of the rule issued in the contempt
proceedings on 02.05.2005 North 24 Parganas Excise
Licensees Assn. filed SLP (C) No. 10820 of 2005 against
the order dated 15.03.2005 passed by the Division Bench
of the High Court. The State of West Bengal filed an
application for vacating the interim order dated
04.01.2005 passed in writ petition No. 2248 of 2004. On
26.07.2005, a learned Single Judge allowed the
application and vacated the interim order but, however,
directed the Government that they would be free to take
steps in issuing license in terms of the policy but it will
be mentioned in the license that it is subject to the result
of the writ petition and further directed that all steps
taken for issuing excise license would abide by the result
of the writ petition.
Being aggrieved by the order of the learned Single
Judge dated 26.07.2005, the appellant preferred an
appeal being APOT No. 494 of 2005 on 10.08.2005. A
Division Bench of the High Court dismissed the said
appeal and confirmed the order of the single judge dated
26.07.2005. The Appellant's Assn. preferred SLP No.
17371 of 2005 against the said judgment. This Court on
29.08.2005 issued notice with an interim direction to the
effect that no license be issued in terms of the circular
dated 20.01.2004 and the matter was directed to be
listed along with SLP No. 10820 of 2005. Both the SLPs
were dismissed by this Court on 07.11.2005.
In the contempt application filed by the appellants,
the learned Advocate General appearing for the
contemnors submitted that there is a violation of the
order passed earlier on 04.01.2005 but the said violation
is not willful as the contemnor wrongly understood the
implications of the orders passed by the High Court on
04.01.2005 and extended subsequently on 19th and 20th
January, 2005 and also by the Division Bench on
15.03.2005, 18.03.2005 in two other different
proceedings. It was further submitted that in order to
hold a person guilty of contempt of court two things have
to be proved. Firstly, disobedience of the order passed by
the court and secondly such disobedience must be
willful. The Advocate-General submitted that in the
instant case there is no willful violation and, therefore,
the contempt application should be dismissed. Some
rulings were relied on by the learned Advocate General in
support of his aforesaid contention.
A learned Single Judge of the High Court was of the
opinion that the contemnors did not understand the
implications and consequences of a prohibitory order
passed in an independent proceedings and by sheer mis-conception thought that there is no bar to issue excise
license in view of the orders dated 15.03.2005 and
18.05.2005 and that failure to understand the implications and/or
consequences of the order passed by
the High Court cannot be construed as an act of
contempt.
In the light of the decisions cited, the High Court
examined whether the alleged contemnors have
committed any contempt of the High Court. While
examining so, the High Court has observed as follows:-"Undisputedly this Bench on 4th January, 2005 passed
an interim order restraining the alleged contemnors
from holding any lottery for the purpose of final
selection of the excise shops in question without
obtaining further order from this court but the alleged
contemnors published an advertisement in the daily
newspaper for holding lottery for the purpose of final
selection of excise shops in question. Therefore, there
is no doubt that the alleged contemnors have
disobeyed the specific direction passed earlier by this
Bench.
The Division Bench of this Hon'ble court in two
different proceedings passed two separate orders on 15th March, 2005 and
18th March, 2005 respectively
whereby and whereunder the alleged contemnors
herein were permitted to grant excise licenses. The
alleged contemnors herein reasonably understood that
the orders passed by the Division Bench will have
overriding effect on the order passed by the learned
Single Judge of this Hon'ble court and thus committed
mistake by not realising the implication of the order
passed by this Bench which remained operative at the
relevant time.
If there is any doubt regarding interpretation and/or
understanding of the orders passed by the courts of
law, the alleged contemnors are entitled to have the
benefit or advantage of such a doubt, as the act of
contempt must be established beyond all reasonable
doubt.
In the aforesaid circumstances, it cannot be said that
the alleged contemnors herein willfully and
deliberately violated the solemn order passed by this
Bench on 4th January, 2005. Mere disobedience of an
order is not sufficient to hold any one guilty under the
Contempt of Courts Act unless such obedience is
deliberate and willful."
The High Court also observed as under:"Although the alleged contemnors in their respective
affidavits have tendered unqualified apology after
categorically stating therein that they had no intention
to willfully or deliberately violate the order passed
earlier by this Bench but in view of the observations
made hereinbefore, I am not inclined to go into the
question of apology."
For the aforementioned reasons, the contempt
petition was dismissed by the High Court. Aggrieved by
the dismissal of the contempt petition, the appellant
preferred the above appeal arising out of SLP No. 15224
of 2006. This Court on 18.09.2006 issued notice and in
the meanwhile directed that no license shall be granted
on the basis of the lottery and pursuant to the circular
dated 20.01.2004.
We heard Mr. K.K.Venugopal, Mr. L.N. Rao, Mr.
Pradip Ghosh, Mr. Joydip Gupta, learned senior counsel
for the appellant and Mr. Gopal Subramanium, learned
Addl. Solicitor General and Mr. Bhaskar P. Gupta,
learned senior counsel for R1-R4 and Mr. Aman Vachher
for R5 and Mr. P.N. Misra and Mr. M.N. Krishnamani,
learned senior counsel in I.A. 3 and I.A.4.
We dismissed all applications for
impleadments/intervention on 21.02.2007 and heard the
arguments of the appellants on merits. Elaborate and
lengthy submissions were made by the respective parties
with reference to the entire pleadings and various orders
passed by the High Court and of this Court and also
other annexures and case laws. Learned senior counsel
appeared for the appellant submitted that in view of the
finding of the learned Judge "that there is no doubt that
alleged contemnor have disobeyed the specific direction
passed earlier by this Bench", the learned Judge of the
High Court was not justified in holding that the alleged
contemnor committed mistake by not realising the
implication of the order passed by the High Court which
remain operative at the relevant time and on that basis
dismissing the application for contempt without making
any order for restoration of the status quo ante to undo
the mischief caused by such violation of the interim
order. According to the learned senior counsel for the
appellant, the impugned order is not sustainable in law
and should not be allowed to operate as a precedent and
the wrong perpetrated by the respondent/contemnors in
contumacious disregard of the orders of the High Court
should not be permitted to hold. Likewise, the High
Court also committed a grievous error of law in holding
that the alleged contemnors did not understand the
implication and consequences of a prohibitory order
passed in an independent proceedings and by sheer mis-conception thought that there is no bar to issue excise
licenses in view of the order dated 15.03.2005 and
18.03.2005 by two different Division Benches of the High
Court. In support of their contention, they cited the
following rulings:
1. Kapildeo Prasad Sah and Ors. Vs. State of
Bihar & Ors., (1999) 7 SCC 569
2) Tayabbhai M. Bagasarwalla and Anr. Vs. Hind
Rubber Industries Pvt. Ltd. & Ors., (1997) 3 SCC
443
3) Eastern Trust Company vs. MaKenzie Mann &
Co., Ltd., AIR 1915 Privy Council 106
4) Anil Ratan Sarkar and Ors. Vs. Hirak Ghosh &
Ors., (2002) 4 SCC 21
5) All India Regional Rural Bank Officers
Federation & Ors. Vs. Govt. of India and Ors.
(2002) 3 SCC 554
6) Ravi S. Naik vs. Union of India & Ors. 1994
Supp (2) SCC 641
7) Surjit Singh and Ors. Vs. Harbans Singh and
Ors. (1995) 6 SCC 50
8) T.M.A. Pai Foundation and Ors. Vs. State of
Karnataka & Ors. (1995) 4 SCC 1
9) Vidya Charan Shukla vs. Tamil Nadu Olympic
Assn. & Anr. AIR 1991 Madras 323
10) Century Flour Mills Ltd. vs. S. Suppiah and
Ors. AIR 1975 Madras 270
Mr. Gopal Subramanium and Mr. Bhaskar P. Gupta
appearing for the contesting respondent Nos. 1-4
reiterated the same contentions which have been urged
before the High Court and since the learned single Judge
clearly found that there was no willful and deliberate
violation of the order of the learned Single Judge
pursuing the same in the further appeal does not arise
and inasmuch as it was held that there was no deliberate
and willful violation as such, this Court may not issue
direction of setting aside the lottery already held. It was
also denied that lottery was held in breach of the interim
orders passed as alleged or at all. On the contrary, the
learned single Judge held that there was no willful and
deliberate violation of the order. It was further submitted
that the entire judgment of the single Judge is required
to be read and not in bits and pieces and that it would
appear from the judgment that the single Judge has
unequivocally held that there was no deliberate and
willful violation of the order and thus has rightly
dismissed the contempt application.
We have carefully considered the rival submissions
made by learned senior counsel appearing for the
respective parties. It is not in dispute that an injunction
order was passed on 04.01.2005 and on subsequent
extension is still subsisting. Respondent Nos.1-4
admittedly are highly qualified and highly placed
government officials. Admittedly, by advocate's letter
dated 15.03.2005, it was pointed out to them that the
injunction order dated 04.01.2005 and its subsequent
extensions are still subsisting. They have also
acknowledged the receipt of the communication dated
15.03.2005. Under such circumstances, the High Court is not justified in
holding that the highly qualified and
well placed government officials did not understand the
implication and/or consequence of prohibitory order in
an independent proceedings and by sheer mis-conception
though that there is no bar to issue excise licenses as
was held by the learned Judge in the impugned order.
This Court can only say it is rather unfortunate that
such officers who are not capable of or not able to
understand the implication of the prohibitory orders
passed by the High Court should be allowed to hold such
high offices. During the course of the hearing of the
contempt application, the matter was adjourned by the
High Court to enable the respondent to consider whether
the contemnors was prepared to cancel the lottery held
on 20, 21 and 22.03.2005 in violation of the Court's
orders and on such adjourned date, the contemnors did
not agree to cancel the lottery. Under such
circumstances, the plea of mistake of understanding the
order cannot at all be accepted. Likewise, the High Court
also was not justified in not directing the contemnors to
cancel the lottery held on 20, 21 and 22.03.2005 in
violation of the solemn orders passed by the very same
Judge and in view of the clear finding of the Court that
they had acted in clear violation of the said interim order
made by the High Court.
Even assuming that there was any scope for bona
fide misunderstanding on the part of the respondents,
once it was found that the respondent had disobeyed the
specific order passed earlier by the Court, the High Court
should have directed the contemnors to undo the wrong
committed by them which was done in clear breach of the
order of the Court by restoring the status quo ante by
canceling the lottery wrongfully held by them.
The
learned Judge found that the respondent-contemnors
had held the lottery in violation of the Court's order and
the results of the said lottery should not be permitted to
take effect and should be treated as unlawful and invalid
for the purpose of grant of license. The learned Single
Judge for the purpose of upholding the majesty of law
and the sanctity of the solemn order of the court of law
which cannot be violated by the executive authority
either deliberately or unwittingly should have set aside
the lottery held and should not have allowed the
respondents to gain a wrongful advantage thereby.
In our opinion, a party to the litigation cannot be
allowed to take an unfair advantage by committing
breach of an interim order and escape the consequences
thereof. By pleading misunderstanding and thereafter
retaining the said advantage gained in breach of the
order of the Court and the wrong perpetrated by the
respondent-contemnors in contumacious disregard of the
order of the High Court should not be permitted to hold
good. In our opinion, the impugned order passed by the
High court is not sustainable in law and should not be
allowed to operate as a precedent and the wrong
perpetrated by the respondent-contemnors in utter
disregard of the order of the High Court should not be
permitted to hold good.
The High Court has committed a
grievous error of law in holding that failure to understand
the implication and consequences of the order passed by
the High Court by highly placed government officers
cannot be construed as an act of contempt. The High
Court has failed to understand that the highly educated
and highly placed government officials have competent
legal advisors and it was not open to them to allege and
contend that the respondent-contemnors did not
understand the implication of the order dated
04.01.2005. In our opinion, such officers are required to
be dealt with effectively to uphold the dignity of the High
Court and the efficiency of the system itself. The High
Court committed a grave error of law by not taking into
consideration the most important fact that in the course
of the hearing of the contempt application the matter was
adjourned in order to enable the contemnor to consider
whether they were prepared to cancel the lottery held on
20, 21 and 22.03.2005 and on the adjourned date, the
respondents did not agree to cancel the lottery. In such
view of the matter, the significant stand being the plea of
mistake of understanding cannot, in our opinion, prevail.
The High Court in that view of the matter committed a
grave mis-carriage of justice by not taking into
consideration another most important fact that if actually
the lottery was held by mistake or by misunderstanding
of the orders, then the respondent would have
immediately rectified it and would have cancelled the
lottery but in the instant case, instead of canceling the
lottery, the respondents have justified their conduct from
which the determined declination of obeying the order is
clearly proved. In other words, if there was a doubt
about the implication of the order of the Court, the
respondents should have approached the Court and
should have clarified their alleged confusion. But in the
instant case, the respondents have not only violated the
order but when the contempt application was moved and
opportunity was given by the Court to cancel the lottery
they refused to cancel the said lottery from which it is
proved that they deliberately held the lottery in clear
violation of the order dated 04.01.2005 having regard to
the admissions made on behalf of the contemnors that
there is violation of the order dated 04.01.2005 and also
having regard to the learned Single Judge's own finding
that "there is no doubt that the alleged contemnor
disobeyed the specific directions passed earlier by this
Bench". The High Court should have directed the
contemnor to cancel the lottery held on these 3 dates.
The High Court also failed to consider the effect of the
appellant's learned advocate's letter dated 15.03.2005
whereby it was clearly pointed out about the subsistence
of the order dated 04.01.2005 and its subsequent
extension. By the said letter, the appellant's advocate
categorically pointed out further that in spite of the above
if the lottery is held or further action is taken for issue of
excise license, the appellant shall be compelled to take
legal action.
In our opinion, the judgment and order passed by
the High court are bad in law and is liable to be set aside.
LAW ON THE SUBJECT:
1. Kapildeo Prasad Sah and Ors. Vs. State of Bihar &
Ors., (1999) 7 SCC 569
"For holding the respondents to have committed
contempt, civil contempt at that, it has to be shown
that there has been willful disobedience of the
judgment or order of the court. Power to punish for
contempt is to be resorted to when there is clear
violation of the court's order. Since notice of contempt
and punishment for contempt is of far-reaching
consequence, these powers should be invoked only
when a clear case of willful disobedience of the court's
order has been made out. Whether disobedience is
willful in a particular case depends on the facts and
circumstances of that case. Judicial orders are to be
properly understood and complied with. Even
negligence and carelessness can amount to
disobedience particularly when the attention of the
person is drawn to the court's orders and its
implications. Disobedience of the court's order strikes
at the very root of the rule of law on which Indian
system of governance is based. Power to punish for
contempt is for the maintenance of effective legal
system. It is exercised to prevent perversion of the
course of justice. Jurisdiction to punish for contempt
exists to provide ultimate sanction against the person
who refuses to comply with court's order or disregards
the order continuously. No person can defy court's
order. Wilful would exclude casual, accidental, bona
fide or unintentional acts or genuine inability to
comply with the terms of the order. A petitioner who
complains breach of the court's order must allege
deliberate or contumacious disobedience of the court's
order."
2) Tayabbhai M. Bagasarwalla and Anr. Vs. Hind
Rubber Industries Pvt. Ltd. & Ors., (1997) 3 SCC 443"16. According to this section, if an objection is raised
to the jurisdiction of the court at the hearing of an
application for grant of, or for vacating, interim relief,
the court should determine that issue in the first
instance as a preliminary issue before granting or
setting aside the relief already granted. An application
raising objection to the jurisdiction to the court is
directed to be heard with all expedition. Sub-rule (2),
however, says that the command in Sub-rule (1) does
not preclude the court from granting such interim relief as it may
consider necessary pending the
decision on the question of jurisdiction. In our opinion,
the provision merely states the obvious. It makes
explicit what is implicit in law. Just because an
objection to the jurisdiction is raised, the court does
not become helpless forthwith - nor does it become
incompetent to grant the interim relief. It can. At the
same time, it should also decide the objection to
jurisdiction at the earlier possible moment. This is the
general principle and this is what Section 9-A
reiterates. Take this very case. The plaintiff asked for
temporary injunction. An ad-interim injunction was
granted. Then the defendant came forward objecting to
the grant of injunction and also raising an objection to
the jurisdiction of the court. The court over-ruled the
objection as to jurisdiction and made the interim
injunction absolute. The defendants filed an appeal
against the decision on the question of jurisdiction.
While that appeal was pending, several other interim
order were passed both by the Civil Court as well as by
the High Court. Ultimately, no doubt, High Court has
found that the Civil Court had no jurisdiction to
entertain the suit but all this took about six years.
Can it be said that orders passed by the Civil Court
and the High Court during this period of six years were
all non-est and that it is open to the defendants to
flout them merrily, without fear of any consequence.
Admittedly, this could not be done until the High
Court's decision on the question of jurisdiction. The
question is whether the said decision of the High Court
means that no person can be punished for flouting or
disobeying the interim/interlocutory orders while they
were in force, i.e., for violations and disobedience
committed prior to the decision of the High Court on
the question of jurisdiction Holding that by virtue of
the said decision of the High Court (on the question of
jurisdiction, no one can be punished thereafter for
disobedience or violation of the interim orders
committed prior to the said decision of the High Court,
would indeed be subversive of rule of law and would
seriously erode the dignity and the authority of the
courts. We must repeat that this is not even a case
where a suit was filed in wrong court knowingly or
only with a view to snatch an interim order. As pointed
out hereinabove, the suit was filed in the Civil Court
bonafide. We are of the opinion that in such a case the
defendants cannot escape the consequences of their
disobedience and violation of the interim injunction
committed by them prior to the High Court's decision
on the question of jurisdiction."
3) Eastern Trust Company vs. MaKenzie Mann & Co.,
Ltd., AIR 1915 Privy Council 106
"There is a well-established practice in England in
certain cases where no petition of right will lie, under
which the Crown can be sued by the Attorney -General,
and a declaratory order obtained, as has been recently
explained by the Court of Appeal in England in Dyson v.
Attorney-General, 1911 (1) KB 410 and in Burghes v.
Attorney-General 1912 (1) Ch. 173 . It is the duty of the
Crown and of every branch of the Executive to abide by
and obey the law. If there is any difficulty in
ascertaining it, the courts are open to the Crown to sue,
and it is the duty of the Executive in cases of doubt to
ascertain the law, in order to obey it, not to dis-regard
it. The proper course in the present case would have
been either to apply to the Court to determine the
question of construction of the contract, and to pay
accordingly, or to pay the whole amount over to the
Receiver and to obtain from the Court an order on the
Receiver to pay the sums properly payable for labour
and supplies, as to the construction of which their
Lordships agree with Supreme Court of Nova Scotia.
The duty of the Crown in such a case is well
stated by Lord Abhinger Chief Barren in Deare v.
Attorney General 1835 (1) y. & C.197. After pointing out
that the Crown always appears (in England) by the
Attorney- General in a Court of Justice-especially in a
Court of Equity- where the interest of the Crown is
concerned, even perhaps in a bill for discovery, he goes
on to say:
"It has been the practice, which I hope never will be
discontinued, for the officers of the Crown to throw no
difficulty in the way of any proceeding for the purpose of
bringing matters before a court of Justice where any
real point of difficulty that requires judicial decision has
occurred."
4) Anil Ratan Sarkar and Ors. Vs. Hirak Ghosh & Ors.,
(2002) 4 SCC 21
"20. Similar is the situation in the counter-affidavit filed
presently in this matter as well : Is this fair ? The
answer having regard to the factual backdrop cannot
but be in the negative. It is neither fair nor reasonable
on the part of a senior Civil Service Personnel to feign
ignorance or plead understanding when the direction of
this Court stands crystal clear in the judgment.
Government employees ought to be treated on a par
with another set of employees and this Court on an
earlier occasion lent concurrence to the view of the
learned Single Judge that the Circulars issued by the
State Government cannot but be ascribed to be
arbitrary : Government is not a machinery for
oppression and ours being a welfare State as a matter of
fact be opposed thereto. It is the people's welfare that
the State is primarily concerned with and avoidance of
compliance with a specific order of the Court cannot be
termed to be a proper working of a State body in terms
of the wishes and aspirations of the founding fathers of
our Constitution. Classless, non- discriminate and
egalitarian society are not meaningless jargons so that
they only remain as the basic factors of our socialistic
state on principles only and not to have any application
in the realities of every-day life : one section of the
employees would stand benefited but a similarly placed
employee would not be so favoured why this attitude ?
Obviously there is no answer. Surprisingly, this attitude
persists even after six rounds of litigation travelling from
Calcutta to Delhi more than once the answer as appears
in the counter-affidavit is an expression of sorrow by
reason of the understanding cannot be countenanced in
the facts presently under consideration. A plain reading
of the order negates the understanding of the
Respondent State and the conduct in no uncertain
terms can be ascribed to be the manifestation of an
intent to deprive one section of the employees being
equally circumstanced come what may and this state of
mind is clearly expressed in the counter-affidavit though
however in temperate language. The question of bona
fide understanding thus does not and cannot arise in
the facts presently. Is it a believable state of affairs that
the order of the learned Single Judge as early as the
first writ petition, has not been properly understood by
the senior most bureaucrat of the State Government :
the same misunderstanding continues in terms of the
appellate Court's order and the third in the line of order
is that of the apex Court. The understanding again
continues even after the second writ petition was filed
before the learned Single Judge in the High Court and
the similar understanding continues even after the so to
say clarificatory order by this Court, as appears from
the order dated 20th April, 2001. Even in the counter-affidavit, filed in Contempt Petition, the understanding
still continues we are at a loss as to what is this
understanding about : the defence of 'understanding'
undoubtedly is an ingenious effort to avoid the rigours
of an order of Court but cannot obliterate the action the
attempted avoidance through the introduction of the so-called concept of lack of understanding cannot,
however, be a permanent avoidance, though there may
be temporary and short-lived gains. The order of this
Court cannot possibly be interpreted as per the
understanding of the Respondents, but as appears from
the plain language used therein. Neither the order is
capable of two several interpretations nor there is any
ambiguity and the same does not require further clarity.
The order is categorical and clear in its context and
meaning. The Court's orders are to be observed in its
observance, rather than in its breach."
5) All India Regional Rural Bank Officers Federation &
Ors. Vs. Govt. of India and Ors. (2002) 3 SCC 554
"4. Mr. Mukul Rohtagi, the learned Additional Solicitor
General, however tried to impress upon us the
circumstances under which the notification had been
issued, the same being severe financial crisis and the
learned Additional Solicitor General further urged that
the monetary benefits of the employees of the banks will
have to be so modulated so that the banks should be
ultimately be closed down by merely paying the salary of
the employees. Even though the financial position of the
banks may not be disputed, but having regard to the
directions issued by this Court, while disposing of the
civil appeal and having regard to the circumstances
under which such directions had been given, it would be
difficult for us to sustain the plea of the union
Government that the Notification is in compliance with
the judgment and directions of this Court. The financial
capacity of the Government cannot be pleaded as a
ground for non-implementation of the directions of the
Court inasmuch as even in the matter of determination
of the pay-scale of the employees of the Regional Rural
Banks and maintenance of parity with their
counterparts, serving under the sponsorer commercial
banks, Justice Obul Reddi had not accepted the said
plea and that award reached its finality. Since the
financial capacity of the employer cannot be held to be a
germane consideration for determination of the wage
structure of the employees and the Parliament enacted
the Act for bringing into existence these regional rural
banks with the idea of helping the rural mass of the
country, the employees of such rural banks cannot
suffer on account of financial incapacity of the
employer. We have no hesitation in coming to the
conclusion that the issuance of notification dated
1.4.2001, by the Government of India cannot be held to
be in compliance with the judgment and directions of
this Court in S.M.G. Bank. But at the same time, we
are of the opinion that the appropriate authority need
not be punished under the provisions of the Contempt
of Courts Act, even if the notification is in direct
contravention of the judgment of this Court, as we do
not find a case of deliberate violation. While, therefore,
we do not propose to take any action against the alleged
contemnors, we direct that the employees of the
Regional Rural Banks should be paid their current
salaries on the basis of determination made under the
notification dated 11.4.2001, the new basic pay having
arrived at, as on 1.4.2000 forthwith Paragraph (i) of the
aforesaid notification dated 11.4.2001 should be
immediately implemented and the employees should be
paid accordingly. Paragraphs (ii) and (iii) of the
notification are quashed and the Central Government is
directed to issue a fresh notification for proper
implementation of the Judgment of this Court. We make
it clear that the period of moratorium with regard to the
payment of arrears, since is going to be over on
31.3.2002, the arrear salary accruing to the employees
be paid to them in three equal annual installments, the
first being on 30th of April, 2002, the second on 30th of
April, 2003 and the third on 30th April, 2004.
This
payment has to be made as aforesaid without being any
way dependant upon any other considerations and there cannot be any
distinction between the regional rural
banks incurring loss and the regional rural banks,
making profit. Further, the question of anticipated cash
out-flow on account of increase in salary if exceeds 50%
of the operating profit, then the current payment would
be restricted only upto 50% is absolutely of no
relevance, which was indicated in the impugned
notification dated 11.4.2001. Having regard to the
financial condition of the Government as well as these
banks, the installment to be paid on 30.4.2002,
pursuant to this order of ours, the same may be
deposited in the employees' provident fund account. But
all other installments will have to be paid in cash."
6) Ravi S. Naik vs. Union of India & Ors. 1994 Supp
(2) SCC 641
"40. We will first examine whether Bandekar and
Chopdekar could be excluded from the group on the
basis of order dated December 13, 1990 holding that
they stood disqualified as members of the Goa
Legislative Assembly. The said two members had filed
Writ Petition No. 321 of 1990 in the Bombay High Court
wherein they challenged the validity of the said order of
disqualification and by order dated December 14, 1990
passed in the said writ petition the High Court had
stayed the operation of the said order of disqualification
dated December 13, 1990 passed by the Speaker. The
effect of the stay of the operation of the order of
disqualification dated December 13, 1990 was that with
effect from December 14, 1990 the Declaration that
Bandekar and Chopdekar were disqualified from being
members of Goa Legislative Assembly under order dated
December 13, 1991 was not operative and on December
24, 1990, the date of the alleged split, it could not be
said that they were not members of Goa Legislative
Assembly. One of the reasons given by the Speaker for
not giving effect to the stay order passed by the High
Court on December 14, 1990, was that the said order
came after the order of disqualification was issued by
him. We are unable to appreciate this reason. Since the
said order was passed in a writ petition challenging the
validity of the order dated December 13, 1990 passed by
the Speaker it, obviouly, had to come after the order of
disqualification was issued by the Speaker. The other
reason given by the Speaker was that Parliament had
held that the Speaker's order cannot be a subject-
matter of court proceedings and his decision is final as
far as Tenth Schedule of the Constitution is concerned.
The said reason is also unsustainable in law. As to
whether the order of the Speaker could be a subject
matter of court proceedings and whether his decision
was final were questions involving the interpretation of
the provisions contained in Tenth Schedule to the
Constitution. On the date of the passing of the stay
order dated December 14, 1990, the said questions were
pending consideration before this Court. In the absence
of an authoritative pronouncement by this Court the
stay order passed by the High Court could not be
ignored by the Speaker on the view that his order could
not be a subject-matter of court proceedings and his
decision was final. It is settled law that an order, even
though interim in nature, is binding till it is set aside by
a competent could and it cannot be ignored on the
ground that the Court which passed the order had no
jurisdiction to pass the same. Moreover the stay order
was passed by the High Court which is a Superior Court
of Record and "in the case of a superior Court of Record,
it is for the court to consider whether any matter falls
within its jurisdiction or not. Unlike a court of limited
jurisdiction, the superior Court is entitled to determine
for itself questions about its own jurisdiction." (See:
Special Reference No. 1 of 1964, [1965] 1 S.C.R. 413 at
p. 499).
42. In Mulraj v. Murti Raghonathji Maharaj, this Court
has dealt with effect of a stay order passed by a court
and has laid down:
In effect therefore a stay order is more or less in
the same position as an order of injunction with one
difference. An order of injunction is generally issued to a
party and it is forbidden from doing certain acts. It is
well settled that in such a case the party must have
knowledge of the injunction order before it could be
penalised for before disobeying it. Further it is equally
well-settled that the injunction order not being
addressed to the court, if the court proceeds in
contravention of the injunction order, the proceedings
are not a nullity. In the case of a stay order, as it is
addressed to the court and prohibits it from proceeding
further, as soon as the court has knowledge of the order
it is bound to obey it and if it does not, it acts illegally,
and all proceedings taken after the knowledge of the
order would be a nullity. That in our opinion is the only
difference between an order of injunction to a party and
an order of stay to a court.
This would mean that the Speaker was bound by
the stay order passed by the High Court on December
14, 1990 and any action taken by him in disregard of
the said stay order was a nullity. In the instant case the
Speaker, in passing the order dated February 15, 1991
relating to disqualification, treated Bandekar and
Chopdekar as disqualified members. This action of the
Speaker was in disregard of the stay order dated
December 14, 1990 passed by the Bombay High Court."
7) Surjit Singh and Ors. Vs. Harbans Singh and Ors.
(1995) 6 SCC 50
"4. As said before, the assignment is by means of a
registered deed. 'The assignment had taken place after
the passing of the preliminary decree in which Pritam
singh has been allotted 1/3rd share. His right to
property to that extent stood established. A decree
relating to immovable property worth more than
hundred rupees, if being assigned, was required to be
registered, that has instantly been done. It is per se
property, for it relates to the immovable property
involved in the suit. It clearly and squarely fell within
the ambit of the restraint order. In sum, it did not make
any appreciable-difference whether property per se had
been alienated or a decree pertaining to that property.
In defiance of the restraint order, the
alienation/assignment was made. If we were to let it go
as such, it would defeat the ends of justice and the
prelavent public policy, When the court intends a
particular state of affairs to exist while it is in seizin of a
lis, that state of affairs is not only required to be
maintained, but it is presumed to exist till the Court
orders otherwise. The Court, in these circumstances has
the duty, as also the right, to treat the
alienation/assignment as having not taken place at all
for its purposes. Once that is so, Pritam singh and his
assignees, respondents herein, cannot claim to be
impleaded as parties on the basis of assignment.
Therefore, the assignees-respondents could not have
been impleaded by the trial court as parties to the suit,
in disobedience of its orders. The principles of lis
pendens are altogether on a different footing. We do not
propose to examine their involvement presently. All
what is emphasised is that the assignees in the present
facts and circumstances had no cause to be impleaded
as parties to the suit. On that basis, there was no cause
for going into the question of interpretation of
paragraphs 13 and 14 of the settlement deed. The path
treated by the courts below was, in our view, out of their
bounds. Unhesitatingly, we upset all the three orders of
the courts below and reject the application of the
assignees for impleadment under Order 22 Rule 10
C.P.C.}
8) Delhi Development Authority vs. Skipper
Construction Co. (P) Ltd. and Anr. (1996) 4 SCC 622
"17. The principle that a contemnor ought not to be
permitted to enjoy and/or keep the fruits of his
contempt is well-settled. In Mohd. Idris v. R.J. Babuji,
this Court held clearly that undergoing the punishment
for contempt does not mean that the Court is not
entitled to give appropriate directions for remedying and
rectifying the things done in violation of its Orders. The
petitioners therein had given an undertaking to the
Bombay High Court. They acted in breach of it. A
learned Single Judge held them guilty of contempt and
imposed a sentence of one month's imprisonment. In
addition thereto, the learned Single Judge made
appropriate directions to remedy the breach of
undertaking. It was contended before this Court that the
learned Judge was not justified in giving the aforesaid
directions in addition to punishing the petitioners for
contempt of court. The argument was rejected holding
that "the Single Judge was quite right in giving
appropriate directions to close the breach (of
undertaking)".
18. The above principle has been applied even in the
case of violation of orders of injunction issued by Civil
Courts. In Clarke v. Chadbum [1985] 1 All. E.R. 211, Sir
Robert Megarry V-C observed :
I need not cite authority for the proposition that it is of
high importance that orders of the court should be
obeyed. Willful disobedience to an order of the court is
punishable as a contempt of court, and I feel no doubt
that such disobedience may properly be described as
being illegal. If by such disobedience the persons
enjoined claim that they have validly effected some
charge in the rights and liabilities of others, 1 cannot
see why it should be said that although they are liable
to penalties for contempt of court for doing what they
did, nevertheless those acts were validly done. Of
course, if an act is done, it is not undone merely by
pointing out that it was done in breach in law. If a
meeting is held in breach of an injunction, it cannot be
said that the meeting has not been held. But the legal
consequences of what has been done in breach of the
law may plainly be very much affected by the illegality.
It seems to me on principle that those who defy a
prohibition ought not to be able to claim that the fruits
of their defiance are good, and not tainted by the
illegality that produced them."
9) Vidya Charan Shukla vs. Tamil Nadu Olympic
Assn. & Anr. AIR 1991 Madras 323 (FB)"56-57.
Adverting to the facts of this case, we knew that
the main relief in the suit to declare that the notice dated
26-5-1990 issued by the first and second defendants on
the basis of the requisition notices convening a Special
General Meeting of the Association on 15-6-1990 is
illegal, null and void cannot be said to have become
infructuous merely because the Court instead of granting
an injunction to hold the meeting on 15-6-1990, gave a
direction to consider an agenda of no-confidence against
the Executive Council and election of new President and
members of the Council in a particular manner. It can
still be found in the suit that the notice was illegal, null
and void and as a consequence, the Court may suitably
modulate the relief or permit the plaintiffs to amend the
relief. Besides this the trial Court will have jurisdiction to
consider the grant of a mandatory injunction even in a
suit which stood disposed of if its decree is found to have
been violated or frustrated. The trial Court being a Court
of Record will have special jurisdiction/inherent power to
pass such orders as are deemed necessary to meet the
ends of justice since this power is saved for it under
Sections 4 and 151 of the Code of Civil Procedure and
Articles 215 and 225 of the Constitution. The instant suit
which is still pending, shall give to the Court power to
consider the desirability to grant a mandatory injunction,
for the reason of its interim injunction having been
violated, to remove the violation and until the suit is
finally decided to preserve the property in dispute in
Status Quo."
10) Century Flour Mills Ltd. vs. S. Suppiah and
Ors. AIR 1975 Madras 270 (FB)
"9. In our opinion, the inherent powers of this court
under Section 151 C.P.C. are wide and are not subject
to any limitation. Where in violation of a stay order or
injunction against a party, something has been done in
disobedience, it will be the duty of the court as a policy
to set the wrong right and not allow the perpetuation of
the wrong doing. In our view, the inherent power will
not only be available in such a case, but it is bound to
be exercised in that manner in the interests of justice.
Even apart from Section 151, we should observe that as
a matter of judicial policy, the court should guard
against itself being stultified in circumstances like this
by holding that it is powerless to undo a wrong done in
disobedience of the court's orders. But in this case it is
not necessary to so to that extent as we hold that the
power is available under Section 151. C.P.C."
11) T.M.A. Pai Foundation and Ors. Vs. State of
Karnataka & Ors. (1995) 4 SCC 1
In this case, suo motu contempt proceedings was
initiated by the Court against Secretary, Deputy
Secretary and Under Secretary to Medical Education
Department and few other officers of the State.
Explanation was given by these officers admitting bona
fide error made in interpreting this Court's order. This
Court having regard to the sequence of events,
extraordinary speed in processing the representation of
the Association and conduct of the officers, held,
explanation not acceptable. Since the order of this Court
was explicit and clear but it was subverted on an ex facie
faulty and deliberately distorted interpretation at the
instance of the Association. Hence, this Court felt that to
accept their unconditional apology would be travesty of
justice and officers were thus held guilty of contempt of
Court and their conduct censured by the Court. This
Court also held that unconditional apology is not a
complete answer to violations and infractions of the
orders of this Court.
12) Satyabrata Biswas and Ors. Vs. Kalyan Kumar
Kisku and Ors. (1994) 2 SCC 266 This Court held thus:
4.From the above it is seen that in relation to the properties an
order of status quo as of today, that is, 15th September, 1988,
had been passed by the court. It is complained that there is a
violation of these three orders by the six respondents,
Satyabrata Biswas, Rev. Bilash Chandra Das, Salil Biswas,
Sushil Sharma, Rt. Rev. Dinesh Chandra Gorai and Rt. Rev.
John E. Ghosh. The contempt was for: (1) putting a padlock to
the main entrance of the premises on 3.7.1993; (2) disconnecting water
supply, (3) obstructing sewerage line; and
(4) preventing the appellants from getting the rooms repaired.10. Under these circumstances the present civil appeal by
special leave has come to be preferred. It is urged on behalf of
the appellants that in view of status quo order dated 15th
September, 1982 regarding the fixed property in possession of
the Durgapur Diocese no tenancy or sub-tenancy rights could
be created. It was also urged that the said Somani Builders
became sub-tenant under an agreement dated 10th May, 1993.
Such a sub-tenancy cannot be valid in view of the status quo
order. It is somewhat strange that Somani Builders should
made an oral application before the learned Single Judge. On
the basis of the oral application, the order came to be passed
in favour of the Somani Builders directing the Special Officer to
remove the padlock. As to what was the nature of the prayer,
that too by a person who was not a party to any one of these
proceedings, is not known. Therefore, the removal of padlock
on its instance, as directed by the learned Single Judge, was
not warranted. As though to add insult to injury when the
appellant was complaining about this order, the Division
Bench goes one step further and directs possession be given to
Somani Builders. This direction would amount to putting a
premium on the illegality committed by the former alleged
tenant A.K. Ghosh.
23. Apart from the fact whether A.K. Ghosh had a legal
authority to sub-lease or not it was not open to him to grant a
sub-lease in violation of the order. It is no use contending as
Mr. Chidambaram, learned Counsel for the respondents does,
that there was a bar to such a sub-lease under the terms of the
status quo order. It has the effect of violating the preservation
of status of the property. This will all the more be so when this
is done without the leave of the court to disturb the state of
things as they then stood. It would amount to violation of the
order. The principle contained in the maxim: 'Actus Curiae
Neminem Gravabit' has no application at all to the facts of this
case when in violation of status quo order a sub-tenancy has
been created. Equally, the contention that even a trespasser
cannot be evicted without recourse to law is without merit,
because the state of affairs in relation to property as on
15.9.1988 is what the Court is concerned with. Such an order
cannot be circumvented by parties with impunity and expect
the court to confer its blessings. It does not matter that to the
contempt proceedings Somani Builders was not a party. It
cannot gain an advantage in derogation of the rights of the
parties, who were litigating originally. If the right of sub-tenancy is recognised, how is status quo as of 15.9.1988
maintained? Hence, the grant of sub-lease is contrary to the
order of status quo. Any act done in the teeth of the order of
status quo is clearly illegal. All actions including the grant of
sub-lease are clearly illegal.
In our opinion, the respondent Nos.1-4 had
deliberately and with mala fide motive have committed
contempt of the High Court in conducting the lottery
quite contrary to the order of injunction passed by the
High Court on 04.01.2005 and its subsequent
extensions. When the auction was held, the order passed
by the High Court remain operative at the relevant time.
The High Court has miserably failed in not issuing
direction to the contemnors to cancel the lottery held on
20, 21 and 22.03.2005 in violation of the solemn order
passed by the High Court. In view of the clear finding of
the Court that the respondent had acted in clear violation
of the order made by the High Court. It is settled law
that a party to the litigation cannot be allowed to take an
unfair advantage by committing breach of an interim
order and escape the consequences thereof by pleading
misunderstanding and thereafter retain the said
advantage gained in breach of the order of the Court.
Such violations should be put an end with an iron hand.
We are unable to accept the argument advanced by
learned Addl. Solicitor General that the respondents did
not understand the implication and consequences of a
prohibitory order passed by the High Court. We have
already explained their conduct and the refusal to cancel
the order when they were advised to do so by the High
Court during the pendency of the contempt proceedings.
The act of the respondent is not only willful but also
deliberate and contumacious. The High Court committed a grave error of law by not holding that if there was a
doubt about the implication of the order of the Court, the
alleged contemnors should have approached the Court
and have clarified their alleged confusion. Likewise, this
Court while ordering notice in the present appeal @ SLP
No. 15224 of 2006 have clearly directed on 18.09.2006
that no license shall be granted on the basis of the lottery
and pursuant to the circular dated 20.01.2004. Even
after the receipt of the order, the respondents have not
cancelled the license, but allowed them to continue the
business. The reason is obvious.
The respondents
though tendered unqualified apology before the High
Court, the High Court was not inclined to go into the
question of apology in view of the observations made by it
in the order impugned in this civil appeal. Even before
us no apology whatsoever was tendered by respondent
Nos.1-4. We, therefore, hold them guilty of willful and
deliberate act of contempt. As it is evident that
respondent Nos.1-4 have no regard for the orders passed
by this Court on 4, 19 and 20.01.2005 and have scant
respect for the Court's orders and have deliberately and
willfully and with utter disregard violated all the 3 orders
and are thus guilty of contempt of Court. However,
taking a lenient view and taking into consideration of the
future prospects of the officers, respondent Nos. 1-4 we
are not imposing any punishment for their willful
violation of the order of the High Court and accept the
unqualified apology filed before the High Court.
Respondent Nos. 1-4 are severely warned that they shall
not involve themselves or violate the order passed by any
Court of law and will not resort to the unacceptable plea
that the said highly placed and highly qualified
government officials did not understand the implication
and/or consequences of a prohibitory order passed by
the Courts of law. They shall not hereafter also take the
plea of inventing an innovative defence that they did not
realise the implications of the order passed by the High
Court which remained operative at the relevant time.
In the instant case, the respondents have conducted
the auction quite contrary to and in violation of an
injunction order passed by the High Court. Courts have
held in a catena of decisions that where in violation of a
restraint order or an injunction order against a party,
something has been done in disobedience, it will be the
duty of the Court as a policy to set the wrong right and
not allow the perpetuation of the wrong doing. In our
opinion, the inherent power will not only be available
under Section 151 CPC as available to us in such a case
but it is bound to be exercised in that manner in the
interest of justice and public interest. As rightly
observed by the Full Bench of the Madras High Court in
AIR 1975 Madras 270, that as a matter of judicial policy
the Court should guard against itself being stultified in
circumstances like this by holding that it is powerless to
undo a wrong done in disobedience of the Court's orders.
We, therefore, cancel all the auctions held on 20, 21 and
22.03.2005 and direct the respondent Nos.1-4 not to
allow the successful bidders to continue the business
and shall stop them forthwith and submit a report to this
Court of strict compliance. We make it clear that we are
not expressing any opinion on the merits of the claim
made by the appellant Association in the writ petition
filed by them before the High Court which is pending.
All
the respondent Nos.1-4 are senior and experienced
officers and must be presumed to know that under the
constitutional scheme of this country orders of the High
Court have to be obeyed implicitly and that orders of this
Court for that matter any Court should not be trifled
with. We have already found hereinabove that they have
acted deliberately to subvert the orders of the High Court
evidently. It is equally necessary to erase an impression
which appears to be gaining ground that the mantra of
unconditional apology is a complete answer to violations
and infractions of the orders of the High Court or of this
Court. We, therefore hold them guilty of contempt of
Court and do hereby censure their conduct.
Though a
copy of this order could be sent which shall form part of
the annual confidential record of service of each of the
said officers, we refrain from doing so by taking a lenient
view of the matter considering the future prospects of the
officers. As already stated, the officers shall not indulge
in any adventurous act and strictly obey the orders
passed by the Courts of law. The civil appeal stands
allowed. Though this is a fit case for awarding exemplary
costs, again taking a lenient view, we say no costs.
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