MUMBAI: In a rare verdict, the Bombay High Court convicted the managing director of a company for contempt of court and sentenced him to three months' simple imprisonment. Justice R D Dhanuka also fined him Rs 1 lakh after holding he had breached undertakings given in the court last year and in 2015 to pay Rs 3 crore to a claimant in a business dispute.
"The contemnor had given undertakings to this Court not once but thrice and deliberately failed to comply with the said undertakings, which were accepted by this Court. Since the contemnor has no respect and regard to the undertakings given to this Court, I am not inclined to grant stay of this order," said Justice Dhanuka, rejecting a plea to stay the sentence.
Justice Dhanuka after giving sufficient time and opportunity to pay M/s Alliance Logistics, convicted Surendra Parikh, managing director of M/s Surendra Engineering Corp, for flouting undertakings, under the Contempt of Courts Act. Significantly, Parikh who was present in court on January 18 when the order was passed, was immediately asked not to leave the court premises after the delivery of the judgement so that he could be transferred to a civil jail.
Omar Shaikh, counsel for Parikh, sought pardon and argued the breach was not deliberate. Parikh in an affidavit, tendered an unconditional apology. However, after hearing both parties, Justice Dhanuka stated "Even todayhe is unwilling to comply...his conduct...shows not only complete disregard of the authority of the court but also discloses casual approach...".
The case of Alliance Logistics was that Surendra Engineering had since 2010 owed it for its services and had flouted a settlement agreement for which it filed a winding up petition in 2015. In October 2015, Parikh, on behalf of Surendra Engineering, agreed to pay Rs 3 crore as part of the instalment. On not getting the money, Alliance filed for civil contempt for breach of orders. Parikh gave two more undertakings to pay Rs 1 crore, last in July 2016 . Last November he deposited a cheque for part amount. It was dishonoured said Rashmin Khandekar and Tushar Gujjar counsel for Alliance seeking action against him for "wilful contempt''.
source:-Timesofindia
"The contemnor had given undertakings to this Court not once but thrice and deliberately failed to comply with the said undertakings, which were accepted by this Court. Since the contemnor has no respect and regard to the undertakings given to this Court, I am not inclined to grant stay of this order," said Justice Dhanuka, rejecting a plea to stay the sentence.
Justice Dhanuka after giving sufficient time and opportunity to pay M/s Alliance Logistics, convicted Surendra Parikh, managing director of M/s Surendra Engineering Corp, for flouting undertakings, under the Contempt of Courts Act. Significantly, Parikh who was present in court on January 18 when the order was passed, was immediately asked not to leave the court premises after the delivery of the judgement so that he could be transferred to a civil jail.
Omar Shaikh, counsel for Parikh, sought pardon and argued the breach was not deliberate. Parikh in an affidavit, tendered an unconditional apology. However, after hearing both parties, Justice Dhanuka stated "Even todayhe is unwilling to comply...his conduct...shows not only complete disregard of the authority of the court but also discloses casual approach...".
The case of Alliance Logistics was that Surendra Engineering had since 2010 owed it for its services and had flouted a settlement agreement for which it filed a winding up petition in 2015. In October 2015, Parikh, on behalf of Surendra Engineering, agreed to pay Rs 3 crore as part of the instalment. On not getting the money, Alliance filed for civil contempt for breach of orders. Parikh gave two more undertakings to pay Rs 1 crore, last in July 2016 . Last November he deposited a cheque for part amount. It was dishonoured said Rashmin Khandekar and Tushar Gujjar counsel for Alliance seeking action against him for "wilful contempt''.
source:-Timesofindia
