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Non compliance of the directions shall warrant contempt of court: SC



Ashish Seth v. Sumith Mittal and Ors., Contempt Petition (C) No. 34/2016 in Writ Petition (Criminal) No.5/2015., October 09, 2020.

The Hon’ble Supreme Court comprising of Justice Ashok Bhushan and Justice M.R.Shah while hearing a contempt petition issued a set of directions to be followed by the parties and held that non compliance of the same shall warrant contempt of court.

The dispute is between the two groups – Seth Group and Mittal Group. Both, the Seth Group and Mittal Group entered into a Memorandum of Settlement (MOS) dated 4.5.2015, which ultimately was made a part of the Supreme Court’s order dated 5.5.2015, disposing of Writ Petition (Criminal) No. 5 of 2015 and Writ Petition (Criminal) No. 11/2015. Noncompliance of the order passed by the Supreme Court in the aforesaid writ petitions is the subject matter of the present contempt petition No. 34/2016 initiated by the Seth Group. The Supreme Court in the earlier detailed order dated 24.4.2020 specifically held that the Mittal Group have deliberately and wilfully not fulfilled their obligations which are required to be fulfilled under MOS dated 4.5.2015.

Seth Group has filed Interlocutory Application No. 78952 of 2020, praying to direct that in the event the Mittal Group still fails to comply with its obligations under the MOS dated 04.05.2015the bifurcation and renewal of license Nos. 34, 35 and 36 of 2007 be granted in favour of the Seth Group. Mittal Group has also filed Interlocutory Application No. 96206 of 2020 and have prayed to direct Seth Group to comply clause 1.2 (to the extent of providing Bank Guarantee) and clauses 1.3 and 1.4 and all other formalities as contained “para17” of the order dated 05.05.2015 and to furnish the requisite documents to the Maximal Infrastructure Pvt. Ltd. as entailed in the CheckList formulated by DTCP for renewal of license, in a time bound manner.

Counsel for the petitioners, among other things, submitted that (i) the Mittal Group is not paying their liability towards the EDC, though specifically directed by this Court in its order dated 24.04.2020. (ii) The Mittal Group is required to pay the entire renewal license fee charges and because of nonpayment of the renewal license fee charges and non submission of the relevant documents and/or asking the documents from the Seth Group, though not required, licensees are not being renewed.

Counsel for the respondents submitted that (i) the Seth Group is not furnishing the requisite documents and therefore there is a delay in getting the aforesaid licensees renewed. (ii) the Mittal Group is ready and willing to avail the new One Time Settlement Scheme – “Samadhan Se Vikas”. It is submitted that the amount due and payable under the new scheme has been computed by the DTCP in the last communication dated 17.09.2020.

After hearing the arguments of the parties in length, and after seeing through the documents on record, the Supreme Court gave directions to both the parties on their conduct upon their agreement to avail the benefit of the onetime settlement scheme “Samadhan Se Vikas”. The Court directed the parties to pay their share of the renewal fee within a period of two weeks from the date of the order. They also directed the Seth Group to provide documents with respect to the lands held by them. In this regard the court held the following among one of the directions:

11. (vii) that the appropriate authority, i.e., DTCP, Haryana, shall communicate the Seth Group as well as the Mittal Group to provide/furnish the documents/undertakings with respect to the lands falling to their respective shares. However, it is clarified that the liability of the Seth Group to provide documents/undertakings with respect to the lands falling to their share only and the liability to furnish/provide the remaining documents/undertaking with respect to the remaining lands shall be of Mittal Group. The appropriate authority shall call for the required documents/undertakings, within a period of two weeks from today, so that further process for renewal of license numbers 34, 35 and 36 of 2007 may take place immediately and Seth Group and Mittal Group to furnish such documents/undertakings, within a period of two weeks from such demand, i.e., within four weeks from today;
(viii) that the entire exercise of renewal of license numbers 34, 35 and 36 of 2007 shall be completed within a period of eight weeks from today without fail. The Mittal Group is hereby specifically warned not to create any further hindrances in getting license numbers 34, 35 and 36 of 2007 renewed;
(ix) the Seth Group and Mittal Group shall file specific undertaking within a period of two weeks from today, agreeing to pay the amount towards EDC liability under the new one time settlement scheme – “Samadhan Se Vikas” as computed by the District Town Planner (HQ), Directorate of Town and Country Planning, Haryana in its communication dated 17.09.2020 (as mentioned hereinabove) , and neither the Seth Group nor the Mittal Group shall dispute the said computation and they shall file specific undertaking that they shall make the payment towards their EDC liability within the time specified in the one time settlement scheme – “Samadhan Se Vikas”.

Further, The Court specifically observed that any noncompliance of the directions as well as the directions in the earlier order dated 24.04.2020 shall be viewed very seriously, warranting action under the Contempt of Courts Act.


Kalidharun K M.

View/ Download the Judgment: Ashish Seth v. Sumith Mittal and Ors.

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