NDLI: 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
Act(s) Referred	Contempt of Courts Act, 1971 (70 of 1971)
Case Type	Writ Petition
Court	Supreme Court of India
Disposal Nature	Directions Issued
Headnote	Contempt of Court – Dispute in the instant case was betweenthe two groups of a Joint Venture (JV) Company – Seth Group andMittal Group – The JV Company had acquired some land includingSector 89, Faridabad and also availed licences from competentauthorities with an intent to develop Sector 89 land – Subsequently,both the groups agreed that development in the said land be dividedand carried out separately and thereupon the development rightsin Sector 89 were sold – Dispute arose between both the groups inrespect of payment of liabilities out of the JV Company which gaverise to various litigations including Writ Petition 5/2015 and 11/2015 – Dispute was referred to arbitration – Memorandum ofSettlement (MoS) dated 04.05.2015 was executed between the SethGroup, Mittal Group and JV Company whereunder both the groupswere to fulfill the reciprocal obligations – Writ Petition 5/2015 wasdisposed of in terms of MoS dated 04.05.2015 – In the ContemptPetitions filed by Seth Group, the grievance of Seth Group was thatMittal Group failed to comply with the obligations under the MoSand the order passed by the Court and the non-compliance waswilful and intentional – Held: In view of the relevant clauses of theMoS and the obligations to be fulfilled by the respective parties tothe MoS, Seth Group fully complied with their obligations, exceptdeposit of the total amount of Rs.25.27 crores - payment to DTCPtowards initial liability of Rs.59.05 crores of JV Company – SethGroup already paid Rs.9.40 crores against the liability of Rs.25.27crores towards EDC liability against the total liability of Rs.59.05crores of JV Company as per Clause 1.2 – The balance amount wasnot deposited by the Seth Group as the Mittal Group had not fulfilledtheir obligations under the MoS – The material on record showedthat the Mittal Group did not fulfill their obligations as per Clause1.2, Clause 5.3 and Clause 8 – Neither the Mittal Group nor JVCompany deposit the balance amount to be paid towards EDCliability of Rs.59.05 crores (deducting Rs.25.27 crores to be paidby the Seth Group) – Mittal Group in Contempt Petition No. 34 of2016 deliberately and willfully did not fulfill their obligations underthe MoS dated 04.05.2015 and as such they rendered themselvesliable for action under the Contempt of Courts Act – However,further two months’ time is given to the respondents to fulfill theirpart of obligations under the MoS dated 04.05.2015 failing which,proceedings under the Contempt of Courts Act would be initiated.
Judge	Hon'ble Mr. Justice M.R. Shah
Neutral Citation	2020 INSC 361
Petitioner	Ashish Seth
Respondent	Sumit Mittal And Others
SCR	[2020] 9 S.C.R. 412
Judgement Date	2020-04-24
Case Number	5

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