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Court said that the conduct of the alleged contemnors was contumacious and attempted to lower the dignity of this court at several levels.
The Calcutta High Court recently criticised the National Credit Guarantee Trustee Company Ltd., which was established by the Union Finance Ministry, for its "contumacious conduct" in disregarding a court order requiring consideration of the petitioner, a food and lodging business, for the Emergency Credit Line Guarantee Scheme (ECLGS).
The single judge bench of Justice Moushumi Bhattacharya observed that the conduct was clear as the alleged contemnors sat by and waited for the time to pass so that the judgment and order became infructuous and the petitioners were deprived of its right even to contest the appeal on merits.
The petitioners had sought to benefit from ECGLS through their initial writ petition. The court by order dated March 30, 2023, dismissed the petition and further ordered the respondent company herein to consider granting the benefit under the scheme to the petitioners as per RBI guidelines and subject to its terms and conditions.
An appeal was later filed by the petitioners and a division bench had issued an interim injunction order, instructing the petitioners not to take any coercive action by the single bench order. In the meantime, the respondent filed a notice to the petitioner under the Security Interest (Enforcement) Rules. 2002 for a public sale of the petitioner's assets, which included their flats and office space.
The petitioners brought this to the attention of the Division Bench, which eventually annulled the respondent's interim protection and stated that the respondent "ought not to have proceeded in such a manner by taking advantage of an interim order."
Since the interim protection had been revoked, the petitioners filed the instant contempt petition alleging that the contemnors had violated the single bench ruling.
Counsel appearing for petitioners submitted that the alleged contemnors had used the fact of pendency of the appeal to frustrate the direction of this Court passed in the judgment and order under contempt.
Counsel representing the alleged contemnors stated that the court can always pass appropriate orders extending the timeframe for the eligibility of the Scheme together with the fact that the order is presently before the appellate Court.
High Court thus observed that the conduct of the alleged contemnors was contumacious and attempted to lower the dignity of the high Court at several levels.
“The alleged contemnors in the case had sought to emasculate the directions of this court by subtle and not-so-subtle defiance of the orders but willful and deliberate on all counts. Further, the court satisfied that appropriate orders may be passed on the alleged contemnors to uphold the dignity of this court,” the court added.
Justice Bhattacharya thus ordered, “The alleged contemnors will consider the eligibility of the petitioners about the ECLGS within 3 p.m. of June 28, 2023, and communicate the decision to the petitioners by 8 p.m. on that date.
Case: Guha Roy Food Joint and Hotel Private Limited & Anr. v. Richa Singh & Ors
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