IN THE HIGH COURT OF DELHI AT NEW DELHI
CIVIL ORIGINAL JURISDICTION
CONTEMPT CASE NO. OF 2023
IN
COMPANY APPLICATION NO. 1004 OF 2014
IN THE MATTER OF
P.D. Gupta & Company …Petitioner
Versus
IDBI …Respondent/ Alleged Contemnor
INDEX
[Link]. PARTICULARS PAGE NO.
1. Urgent Application 1
2. Notice of Motion 2
3. Memo of Parties 3
4. CONTEMPT PETITION UNDER ARTICLE 215
OF THE CONSTITUTION OF INDIA READ WITH
SECTION 11 & 12 OF THE CONTEMPT OF
COURTS ACT, 1971 FOR NON-COMPLIANCE
4-17
OF THE ORDER DATED 21.07.2023 PASSED
BY THIS HON’BLE COURT IN CO. APPL.
1004/2014 WITH SUPPORTING AFFIDAVIT.
5. ANNEXURE P-1
A Copy of Order dated 21.07.2023 passed in CO. 18-19
APPL. No. 1004/2014 of 2014 by this Hon’ble
Court.
6. ANNEXURE P-2
A Copy of letter dated 20.09.2005 20
7. ANNEXURE P-3
Details of Bank Drafts along with the copies of 21-22
drafts amounting total of Rs. 1 crore
8. ANNEXURE P-4
A copy of the order dated 03/04/2013 passed by 23
this Hon’ble Court in Company Application No.
2430 of 2011
9. ANNEXURE P-5
24-28
10. ANNEXURE P-6
29
11. ANNEXURE P-7
A 30-31
12. Vakalatnama 32
13. PROOF OF SERVICE 33
THROUGH
Place: New Delhi
Filed On: .10.2023
(VIVEK GUPTA)
Advocates for the Petitioner
21-B, Ajanta Apartment,
Patparganj, New Delhi – 110092
[Link].9871065420
vivekmzn@[Link]
IN THE HIGH COURT OF DELHI AT NEW DELHI
CIVIL ORIGINAL JURISDICTION
CONTEMPT CASE NO. OF 2023
IN
COMPANY APPLICATION NO. 1004 OF 2014
IN THE MATTER OF
P.D. Gupta & Company …Petitioner
Versus
IDBI …Respondent/ Alleged Contemnor
URGENCY APPLICATION
To
The Registrar
High Court of Delhi,
New Delhi – 110 001
Kindly treat the accompanying contempt petition as an urgent one in
accordance with the High Court rules and orders.
The ground of urgency are:- Initiate contempt proceedings against the
respondents has been prayed for.
THROUGH
Place: New Delhi
Filed On: .10.2023
(VIVEK GUPTA)
Advocates for the Petitioner
21-B, Ajanta Apartment,
Patparganj, New Delhi – 110092
[Link].9871065420
vivekmzn@[Link]
IN THE HIGH COURT OF DELHI AT NEW DELHI
CIVIL ORIGINAL JURISDICTION
CONTEMPT CASE NO. OF 2023
IN
COMPANY APPLICATION NO. 1004 OF 2014
IN THE MATTER OF
P.D. Gupta & Company …Petitioner
Versus
IDBI …Respondent/ Alleged Contemnor
NOTICE OF MOTION
TAKE NOTICE that the present Company Application will be listed before the
Hon’ble Court on this , 2023 or at the time as found convenient to the Hon’ble
Court.
THROUGH
Place: New Delhi
Filed On: .10.2023
(VIVEK GUPTA)
Advocates for the Petitioner
21-B, Ajanta Apartment,
Patparganj, New Delhi – 110092
[Link].9871065420
vivekmzn@[Link]
IN THE HIGH COURT OF DELHI AT NEW DELHI
CIVIL ORIGINAL JURISDICTION
CONTEMPT CASE NO. OF 2023
IN
COMPANY APPLICATION NO. 1004 OF 2014
IN THE MATTER OF
P.D. Gupta & Company …Petitioner
Versus
IDBI …Respondent/ Alleged Contemnor
MEMO OF PARTIES
P.D. Gupta & Company
Through its Proprietor,
Mr. P.D. Gupta,
Office at: 16/1434,
Indra Nagar, Lucknow, U.P.
…PETITIONER
Versus
Industrial Development Bank of India
(Operating Agency)
IDBI Tower, Cuffe Parade
Mumbai-400005
…RESPONDENT
THROUGH
Place: New Delhi
Filed On: .10.2023
(VIVEK GUPTA)
Advocates for the Petitioner
21-B, Ajanta Apartment,
Patparganj, New Delhi – 110092
[Link].9871065420
vivekmzn@[Link]
IN THE HIGH COURT OF DELHI AT NEW DELHI
CIVIL ORIGINAL JURISDICTION
CONTEMPT CASE NO. OF 2023
IN
COMPANY APPLICATION NO. 1004 OF 2014
IN THE MATTER OF
P.D. Gupta & Company …Petitioner
Versus
IDBI …Respondent/ Alleged Contemnor
MEMO OF PARTIES
P.D. Gupta & Company
Through its Proprietor,
Mr. P.D. Gupta,
Office at: 16/1434,
Indra Nagar, Lucknow, U.P.
…PETITIONER
Versus
Industrial Development Bank of India
(Operating Agency)
IDBI Tower, Cuffe Parade
Mumbai-400005
…RESPONDENT
CAUSE TITLE IN THE WRIT PETITION (C) NO.7095 OF 2020
P.D. Gupta & Company
Through its Proprietor,
Mr. P.D. Gupta,
Office at: 16/1434,
Indra Nagar, Lucknow, U.P.
…PETITIONER
Versus
Industrial Development Bank of India
(Operating Agency)
IDBI Tower, Cuffe Parade
Mumbai-400005
…RESPONDENT
CONTEMPT PETITION UNDER ARTICLE 215 OF THE
CONSTITUTION OF INDIA READ WITH SECTION 11 & 12 OF
THE CONTEMPT OF COURTS ACT, 1971 FOR NON-
COMPLIANCE OF THE ORDER DATED 21.07.2023 PASSED BY
THIS HON’BLE COURT IN CO. APPL. NO. 1004 OF 2014
TO,
THE HON’BLE CHIEF JUSTICE OF
THE DELHI HIGH COURT
AND OTHER COMPANION JUDGES
THE HUMBLE PETITION OF THE PETITIONER
ABOVENAMED
MOST RESPECTFULLY SHOWETH:
1. That the petitioner is constrained to file the present contempt petition
against the respondents/ alleged contemnors for wilfully, knowingly and
intentionally violating the order dated 21.07.2023 passed by this Hon’ble
Court in CO. APPL. No.1004 of 2014. The alleged contemnors failed to
refund Rs.1 crore along with simple interest @ 7%, from date of deposit
till date of payment, within two months as directed according to the order
dated 21.07.2023, thus the present contempt petition is being filed.
2. That the above said Company Application was filed by the petitioner inter
alia seeking the prayer for directing IDBI Bank to refund/ release Rs. 1
crore to the applicant along with interest @ 12% per annum from the date
of deposition. The said Company Application was allowed in favour of the
above said petitioner by this Hon’ble Court vide its order dated
21.07.2023 with the following directions to the alleged contemnors as
contained in the said order: -
“… 7. Under such circumstances, there appears to be no justifiable
reason for the IDBI to argue that the amount ought not to refunded.
Since the OTS has not gone through, the amount of the Applicant
which was deposited towards the finalisation of the OTS cannot be
appropriated in this manner by IDBI.
8. The same is accordingly directed to be refunded along with
simple interest @ 7% from date of deposit till date of payment. The
entire payment be made by IDBI within two months.….”
A Copy of Order dated 21.07.2023 passed in CO. APPL. No. 1004
of 2014 by this Hon’ble Court is enclosed herewith as ANNEXURE P-1.
3. BRIEF FACTS OF THE CASE:
A. That the Company Petition No. 72 of 1992 is pending before this Hon’ble
Court for the proceeding of winding up of the M/s Moradabad Syntex Ltd.
(MSL) Company pursuant to the opinion of BIFR under Section 20 of Sick
Industrial Companies (Special Provisions) dated 26.06.1996, whereby it
was recommended that the Moradabad Syntex Limited be wound up.
B. That the Consortium of Financial Institution which provided finance to the
company are IDBI, IFCI and ICICI beside ‘3’ banks namely Bank of
Baroda, Bareilly Corporation Bank Limited and Nainital Bank. Since IDBI
Limited provided the majority of the financing among financial institutions
and banks, it was appointed as the lead or operating agency before the
BIFR and was fully authorised to deal with the Company on behalf of
other financial institutions and banks.
C. That an OTS was agreed into by the secured creditors pursuant to the
MOU dated 30/03/2001 between M/s Chauhan & Co. (Prospective
Purchaser), MSL and IDBI (representing the secured creditors). As per
OTS value of assets of MSL shall be Rs. 6 crore, out of this amount Rs.
4.95 was to be distributed proportionally amongst Financial Institution as
their full and final settlement of all dues and remaining sum of Rs. 1.05
crore be made available to MSL for payment of statutory dues/ workmen
etc.
D. That M/s Chauhan & Co sold the assets of MSL and paid Rs. 2.5 crore to
MSL in January 2002. Out of this amount Rs. 2.10 crore was received by
the IDBI and it was proportionally distributed among the Financial
Institution and the banks in terms of their MOU dated 30/03/2001, further
the remaining amount of Rs. 40 Lakh was utilised for payment of workers.
E. That MSL filed CA No. 1309 of 2005 on 07.09.2005 to the effect that P.D.
Gupta applicant is willing to purchase company for Rs. 6 Crores and thus
his proposal maybe accepted in terms of the scheme sanctioned by this
Hon’ble Court on 02.11.2001. It is submitted that this C.A. was never
allowed and accordingly this Hon’ble Court disposed of this application as
not pressed.
F. That M/s Chauhan & Co. defaulted in paying the remaining amount under
the MOU and OTS got failed. Thereafter, the company MSL find out new
prospective purchase M/s P.D. Gupta and Co. (Applicant herein), who
agreed to pay total Rs. 6 crore over and above Rs. 2.5 crore paid by M/s
Chauhan and Co. The applicant paid Rs. 1 crore against the said
proposal subject to NOC of IDBI Bank and permission from this Hon’ble
Court within 15 days.
The applicant paid Rs. 1 crore to IDBI directly through 12 DD’s
with the aforesaid condition as non-lien amount. While depositing the
amount with IDBI, the applicant has specifically stated that this amount is
being paid against the offer made by him and in case IDBI or Delhi High
Court does not accept the offer, the amount paid by the applicant to be
returned back immediately by way of DD in favour of P.D. Gupta. Copies
of letter dated 20.09.2005 and details of Bank Drafts along with the
copies of drafts are enclosed herewith as ANNEXURE P-2 & P-3
respectively.
G. That in the meantime the company again negotiated another prospective
purchase M/s Ravi Crop Services Pvt. Ltd. who deposited Rs. 2.25 crore
with IDBI on 24.08.2006 against total fresh OTS amount of Rs. 6 crores.
The proposal of M/s Ravi Crop Services Ltd. was not
consented by all financial creditors thus this proposal also got failed and
the bank IDBI did not return his amount as well. Thus, he filed a CA No.
2430 of 2011 before this Hon’ble Court with prayer to return the amount
deposited with IDBI. This Hon’ble Court vide order dated 03.04.2013
directed IDBI to refund the said amount received on behalf of prospective
purchaser. A copy of the order dated 03/04/2013 passed by this Hon’ble
Court in Company Application No. 2430 of 2011 is enclosed herewith and
marked as ANNEXURE P-4.
4. That the Respondent have committed grave and flagrant Contempt of
Court squarely falling within the definition of Civil Contempt under Section
2(b) of the Contempt of Courts Act, 1971 by deliberately, willfully and
contumaciously disobeying the said order and that for such contempt
Respondents ought to be punished under Section 12 of the Contempt of
Court Act, 1971. The Respondents herein have scant respect towards
the majesty of justice as it is in wilful and continuous defiance of the order
dated 21.07.2023 passed by this Hon’ble Court.
5. That there has been wilful disobedience on the part of the respondent in
compliance with the impugned order; respondent is liable for contempt of
the court and contempt proceedings should be initiated against the
respondent.
6. That the Petitioner submits that there is no equally efficacious alternate
remedy available to him and therefore the present Contempt Case is
being filed.
7. That the Petitioner has not filed any Contempt Case against the alleged
Contemnors before this Hon'ble arising out of non-compliance of Order
dated 21.07.2023 passed by this Hon’ble Court in CO. APPL. No.1004 of
2014.
8. That the Petitioner submits that this Hon'ble Court by virtue of Section 11
of the Contempt of Courts Act, 1971 read with Article 215 of the
Constitution has the power to entertain Petitions for Contempt of the
Orders passed by this Hon’ble Court. This Hon'ble Court, therefore, has
the jurisdiction to entertain and try the present Petition for Contempt.
10. The instant Petition is within limitation.
In these circumstances it is respectfully prayed that a direction may be
given to the alleged contemnors to implement the order dated 21.07.2023 in its
true letter and spirit forthwith.
PRAYER
In the circumstances mentioned above, it is most respectfully prayed that
this Hon’ble Court may graciously be pleased to: -
a) Initiate contempt proceedings against the respondent-alleged contemnor
for disobeying the binding directions given by this Hon'ble Court vide
order dated 21.07.2023 passed in CO APPL No. 1004 of 2014;
b) A direction may be given to the alleged contemnors to implement the
order dated 21.07.2023 in its true letter and spirit forthwith and to refund
Rs. 1 crore along with simple interest @ 7% from date of deposit till date
of payment;
c) Pass such other appropriate order/s as this Hon’ble Court may deem fit
and proper in the interest of justice.
AND FOR THIS ACT OF KINDNESS THE PETITIONER AS IN DUTY BOUND
SHALL EVER PRAY.
THROUGH
Place: New Delhi
Filed On: .10.2023
(VIVEK GUPTA)
Advocates for the Petitioner
21-B, Ajanta Apartment,
Patparganj, New Delhi – 110092
[Link].9871065420
vivekmzn@[Link]
IN THE HIGH COURT OF DELHI AT NEW DELHI
CIVIL ORIGINAL JURISDICTION
CONTEMPT CASE NO. OF 2023
IN
COMPANY APPLICATION NO. 1004 OF 2014
IN THE MATTER OF
P.D. Gupta & Company …Petitioner
Versus
IDBI …Respondent/ Alleged Contemnor
AFFIDAVIT
I, P.D. Gupta, Proprietor of P.D. Gupta & Company 16/1434, Indra Nagar,
Lucknow, U.P. presently at New Delhi, do hereby solemnly affirm and state as
under:
1. That I being proprietor of the petitioner in the aforesaid Contempt Case and am
conversant with the facts and circumstances of the case and as such I am
competent to swear this affidavit.
2. That I have read the contents of the accompanying Contempt Case [paras 1 to
], [Pages to ], and after having understood the contents thereof,
and have been read over and explained to me in my vernacular I say that the
facts stated therein are true to my knowledge and belief.
3. That the annexures are true copies of their respective originals.
4. That the facts stated in the above affidavit are true to my knowledge and belief;
no part of the same is false and nothing material has been concealed
therefrom.
DEPONENT
VERIFICATION:
I, P.D. Gupta, the above named deponent, do hereby verify that the facts stated in
the above affidavit are true to my knowledge and belief, no part of it is false and
nothing material has been concealed therefrom.
th
Verified at New Delhi on this the day of October, 2023.
DEPONENT
