ORBIT ELECTRICALS PRIVATE LIMITED versus DEEPAK KISHAN CHHABRIA & ORS.
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[2023] 15 S.C.R. 1022 : 2023 INSC 967 1022 CASE DETAILS ORBIT ELECTRICALS PRIVATE LIMITED v. DEEPAK KISHAN CHHABRIA & ORS. (Contempt Petition (Civil) No 1195 of 2023) In (Civil Appeal No. 6108 of 2023) OCTOBER 30, 2023 [DR. DHANANJAYA Y CHANDRACHUD, CJI, J. B. PARDIWALA AND MANOJ MISRA, JJ.] HEADNOTES Issue for consideration: Order dtd.13.10.23 was passed by the Supreme Court directing NCLAT to pronounce judgment in the pending appeal only after the results of the Annual General Meeting of Finolex Cables Limited were declared. Despite the fact that NCLAT’s attention was drawn to the order of the Supreme Court, it went on to deliver the judgment ignoring the direction therein. Said order, if was in willful defi ance of the Supreme Court’s order. Contempt – Interim direction passed by the NCLAT at the stage of reserving orders, restoring the status quo ante as available prior to EOGM dtd.03.05.19 was vacated by Supreme Court – While vacating the order, it was noted that the Annual General Meeting (AGM) of Finolex Cables Limited was to take place on 29.09.23 and directed that any action taken on the appointment of the Executive Chairperson shall be subject to the outcome of the appeal pending before NCLAT – Proceedings mentioned in the Contempt Petition, apprising the Supreme Court that the declaration of the result of the AGM was deferred till the declaration of the judgment by NCLAT – Vide Order dtd.13.10.23, Scrutinizer was directed to declare the result of the AGM and NCLAT was directed to declare its judgment in the pending appeal after it was duly apprised of the fact that the result of the AGM was declared – Grievance of the Petitioners that the NCLAT was though apprised 1023 of the said order, it proceeded to deliver the judgment ignoring the direction therein– Chairperson of the NCLAT directed to verify the position and submit report– Report submitted – Affi davits fi led by the two members who constituted the Bench of the NCLAT and by the Scrutiniser: Held: From the CCTV footage as well as from the transcript, it is evident beyond doubt that though the NCLAT was duly apprised of the fact that this Court had in the morning session on 13.10.23 passed an order to the eff ect that the judgment shall be pronounced only after the results by the Scrutiniser were declared, the Bench of the NCLAT declined to pay heed to the order of this Court – The Bench of the NCLAT acted in willful defi ance of the order despite the fact that its attention was drawn to the order of this Court – Unconditional apology tendered by the Member (Technical) accepted – As regards the Member (Judicial), what was stated by him was contrary to the record – This was compounded by what had been stated in the affi davit fi led – The conduct of the Member (Judicial) is censured – Further, on facts, there is no doubt that the the Scrutiniser acted in concert with ‘DKC’, the then acting Chairman-cum-Managing Director to delay the declaration of the result of the AGM, in breach of the directions issued by this Court – ‘DKC’ to pay Rs.1 crore and the Scrutiniser to pay Rs.10 lakhs to the Prime Minister’s Relief Fund – Directions issued in the earlier order of this Court setting aside the judgment delivered by the Bench of the NCLAT on 13.10.23, reiterated – Contempt proceedings disposed of. [Paras 19, 21-24, 26, 28, 31 and 33] OTHER CASE DETAILS INCLUDING IMPUGNED ORDER AND APPEARANCES INHERENT JURISDICTION: Contempt Petition (Civil) No. 1195 of 2023 in Civil Appeal No. 6108 of 2023. From the Judgment and Order dated 21.09.2023 of the National Company Law Appellate Tribunal, Principal Bench at New Delhi in Company Appeal (AT) No.64 of 2020. Appearances: Mukul Rohatgi, Ranjeet Kumar, Neeraj Kishan Kaul, Sr. Advs., Kunal Mehta, Shikhil Suri, Abhinav Agrawal, Advs. for the Petitioner. ORBIT ELECTRICALS PRIVATE LIMITED v. DEEPAK KISHAN CHHABRIA & ORS. 1024 SUPREME COURT REPORTS [2023] 15 S.C.R. Tushar Mehta, SG, Shyam Divan, Maninder Singh, Darius Khambata, Dr. A.M. Singhvi, Krishnendu Dutta, P.S. Patwalia, Prashanto Sen, Sr. Advs., Amit Jajoo, Malak Manish Bhatt, Ms. Vatsala Pant, Mandeep Singh, Somasekhar Sundaresan, Ravi Gadagkar, Nitin Saluja, Saahil Mongia, Ms. Ishita Soni, Ms. Simran Khurana, Ms. Pranya Madan, Ankur Saigal, E.C. Agrawala, Shashwat Singh, Ms. Geetika Sharma, Amit Pawan, Suchit Singh Rawat, Ms. Shivangi, Anand Nandan, Aakarsh, Hassan Zubair Waris, Kanu Agrawal, Madhav Sinhal, B
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