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Rajendrakumar Padmanabhan Kaimal vs Bank Of Baroda And Ors

National Company Law Appellate Tribunal18 September 2024Ashok Bhushan

Ratio decidendi

The rule this decision rests on

Contempt proceedings lie only for wilful disobedience of a direction contained in the court's order; where the order relied upon contains no direction capable of being disobeyed, a contempt application founded on it is without basis and must be rejected.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHIContempt Case (AT) No. 19 of 2024InComp. App. (AT) (Ins) No. 1035 of 2024IN THE MATTER OF:

Rajendrakumar Padmanabhan Kaimal ...Applicant

Versus

Bank of Baroda & Ors. ...Respondent(s)/Contemnor Present: For Appellant : Mr. KD. Sharma, Advocate For : Mr. Abhijeet Sinha, Sr. Advocate with Ms. Smriti Respondents Churiwal, Mr. Jaiveer Kant, Ms. Atika Chaturvedi, Advocates.

ORDER

(Hybrid Mode) 18.09.2024: Contempt Case (AT) No. 19 of 2024

This is application has been filed by the IRP praying for initiation of

contempt for non-compliance of the order dated 19.07.2024. Order dated

19.07.2024 of non-compliance of which is claimed is as follows:

"Learned counsel for the IRP seeks clarification of the interim order dated 28.05.2024. By order dated 28.05.2024, we passed following interim order:

"In the meantime, the impugned order dated 15.05.2024 shall remain stayed. As submitted by the appellant, appellant shall submit a better offer to the bank within two weeks which shall be considered in accordance with the policy of the Bank."

Learned counsel for the IRP submits that the impugned order having been stayed, the IRP cannot take any further steps in the CIRP, however, there are going concern payments with regard to the Corporate Debtor.

-2- We clarify that the IRP shall be entitled to run the Corporate Debtor as going concern and take all necessary steps for keeping the Corporate Debtor a going concern and make payments to continue the Corporate Debtor a going concern. Interim order dated 28.05.2024 is clarified as above".

2. The above order does contain any direction to either the appellant or

the Respondent of which non-compliance can be complained of. Contempt

proceedings can be initiated when there is a wilful disobedience of any

direction of the court. We fail to see any direction in the above order on basis

of which contempt can be filed.

3. Filing of contempt on behalf of the IRP is thus, without any basis.

4. Contempt application is rejected.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) sr/nn

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