NDLI: Ashish Seth Vs. Sumit Mittal and Others

Ashish Seth Vs. Sumit Mittal and Others

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Ashish Seth Vs. Sumit Mittal and Others

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Ashish Seth Vs. Sumit Mittal and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Contempt of Court
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case Type	Contempt Petition
Court	Supreme Court of India
Disposal Nature	Directions Issued
Headnote	Contempt of Court – Dispute between two groups of a JointVenture (JV) Company – Seth Group and Mittal Group – The JVCompany had acquired some land and also availed licenses withan intent to develop the land – Subsequently, both the Groups agreedto divide the development in the land and thereupon the developmentrights in the land were sold – Dispute arose between them in respectof payment of liabilities out of the JV Company which gave rise tovarious litigations – Matter was referred to arbitration –Memorandum of Settlement (MoS) dated 04.05.2015 was executedbetween the Groups whereunder both the groups were to fulfill thereciprocal obligations – Writ Petition was disposed of in terms ofthe MoS – In the contempt petitions filed by Seth Group, thegrievance was that Mittal Group failed to comply with the obligationsunder the MoS and the non-compliance was wilful and intentional– On 24.04.2020, this Court held that the Mittal Group deliberatelyand willfully did not fulfill their obligations under the MoS and assuch they rendered themselves liable for action under the Contemptof Courts Act – However, two months’ time was given to them tofulfill their part of obligations under the MoS – Despite the abovespecific directions, licenses were not renewed by the Mittal Groupand because of non-renewal of the licenses, the balance amount ofEDC liability was not paid by the Seth Group and even the MittalGroup also did not pay their liability towards EDC of the said licenses– Hence IAs filed by both the Groups – Held: Considering the earlierorder dated 24.04.2020, it is not disputed that the Mittal Groupwas to renew licenses and for which application was to be submittedby them – The three licenses were with respect to the entire 48.03acres of the land, out of which the development rights of only 14.80acres were given to Seth Group – Even bifurcation of licenses waswith respect to 14.80 acres in favour of Seth Group and theremaining 33.23 acres in favour of the Mittal Group and others –Conjoint reading of relevant clauses of MOS showed that the liabilityof the Seth Group towards the license renewal fees is with respectof the lands falling to the share of Seth Group i.e. 14.80 acres andadditionally, the Seth Group is also required to pay half of theliability of others towards license renewal fees and the Mittal Groupis liable to pay balance license renewal fees – Thus, both the Groupsare directed to pay their respective license renewal fees liabilitywithin two weeks – As regards the liability towards EDC, bothGroups desired to avail the benefit of One Time Settlement Scheme,“Samadhan Se Vikas” – In view of that, both the Groups are requiredto submit mutual consent opting for the benefit of OTS scheme –Thus, in continuation of earlier order dated 24.04.2020, directionspassed in respect of renewal of license and payment of amounttowards EDC liability under the new OTS scheme – Matter to belisted after three months for reporting compliance.
Judge	Hon'ble Mr. Justice Mukeshkumar Rasikbhai Shah
Neutral Citation	2020 INSC 585
Petitioner	Ashish Seth
Respondent	Sumit Mittal And Others
SCR	[2020] 11 S.C.R. 525
Judgement Date	2020-10-09
Case Number	34

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