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Synopsis

The High Court of Jammu and Kashmir & Ladakh, has initiated contempt proceedings against the law firm Shardul Amarchand Mangaldas (SAM) for allegedly misrepresenting judicial findings in its February 2010 judgment concerning the Sawalkote Hydro-Electric Project (HEP).

The court, presided over by Justice Rahul Bharti, took suo motu cognizance of the issue after a legal notice was issued by SAM on behalf of its client, Sawalkote Prosjektutvikling AS (SPAS). The legal notice, issued on April 18, 2022, allegedly misrepresented the 2010 judgment. According to the court, the notice falsely suggested that the High Court had upheld the contractual relationship between the Sawalkote Consortium (comprising SPAS, Hindustan Construction Company, and Ozaltin Construction) and Jammu & Kashmir Power Development Corporation Limited (JKPDC). The 2010 judgment, however, solely examined the arbitrariness of a Government Order mandating competitive bidding and did not adjudicate the Consortium's contractual status.

The contempt proceedings arose from SPAS's petition challenging a Memorandum of Understanding (MoU) signed between Jammu & Kashmir Power Development Corporation (JKPDC) and the National Hydro Electric Project (NHPC) for the execution of four power projects, including the Sawalkote plant (1856 MW). SPAS claimed an existing agreement with JKPDC for the Sawalkote plant, which the High Court dismissed on the grounds of lack of locus standi.

The court observed: “Mr. Sverre Henning Fjeldstad and law firm-Sharadul Amarchand Mangaldass & Co. took the liberty of attributing and reading into the said judgment dated 01.02.2010 of the writ court self-serving claim as if the High Court of Jammu & Kashmir had proceeded on the premise that Sawalkote consortium comprising of the petitioner –SPAS, Hindustan Construction Company Ltd. and M/s Ozaltin Construction Trade & Industry Company (INC) was having a contract in its favour from the JKSPDC’s end and the so-called contract was upheld by the High Court as alive, thriving and binding.” In furtherance, it directed SAM's Delhi office to appear in person to explain its position regarding the legal notice.

The court further noted: “Para 18, 20, 23, 27, 28 & 32 of the legal notice dated 18.04.2022 issued by Sharadul Amarchand Mangaldass & Co. (a law firm) through its partner Ritu Bhalla carry and make a misconceived and perverted reference to the judgment dated 01.02.2010 of the High Court of Jammu & Kashmir and, therefore, the said misquoting of the judgment of the High Court of Jammu & Kashmir by none else than law firm is a serious matter to be taken with due seriousness as prima-facie amounting to a criminal contempt undermining the administration of justice and the authority by this Court and its judgment.”

The court clarified that though the judgment quashed the Government Order mandating competitive bidding for the Sawalkote project, citing arbitrariness and violations of natural justice. It did not touch upon the nature of any contractual relationship between the Sawalkote Consortium and the government entities.

“This Court cannot let escape a matter of serious concern on record of this writ petition in the context in which the judgment dated 01.02.2010 of this Court in writ petition OWP No. 854/2006 came to be misquoted, with impunity, out of context without any factual and legal basis for and on behalf of the petitioner so as to color said judgment dated 01.02.2010 of this Court to mean something which at no point of time it ever meant or suggested it to be so,” the court remarked.

Conclusively, the court directed the Registrar Judicial, Jammu, to issue notice to SAM.

 

Cause Title: M/S Sawalkote Prosjektutvikling (SPAS) v UT of Jammu & Kashmir [WP(C) No. 237/2024]

Appearance: Senior Advocate CM Koul and Advocates Arshad Hussain and AR Bhat represented the petitioners. Advocate General DC Raina and Additional Advocate General Ravinder Gupta appeared for the Union Territory of Jammu & Kashmir. Senior Advocate PN Raina and Advocates JA Hamal and AP Singh appeared on behalf of JKPDC and NHPC.