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Issues: Whether the respondents were guilty of criminal contempt for repeatedly initiating proceedings to restrain the petitioner's suits by suppressing material facts and litigating the same question again, and whether preventive injunctive relief against further such proceedings could be granted.
Analysis: The proceedings taken by the respondents were examined in the light of the settled meaning of criminal contempt under the Contempt of Courts Act, 1971, namely, conduct that interferes with the due course of judicial proceedings or the administration of justice. The repeated applications were founded on substantially the same grounds that had already been rejected by the Delhi High Court and by this Court in earlier proceedings. The respondents suppressed those adverse orders when moving fresh applications and thereby misled the Court into issuing rules and interim orders. Such successive litigation on the same grounds, coupled with concealment of material facts, was treated as abuse of the Court's process and as conduct lacking bona fides. The Court also held that it had inherent power, preserved by section 22 of the Act, to prevent repetition of such abuse by restraining further proceedings of the same nature without leave.
Conclusion: The respondents, other than the three ladies who were given the benefit of doubt, were held guilty of criminal contempt; respondents 1 to 4 were convicted and fined, and an injunction was granted restraining the respondents from initiating further similar proceedings without prior leave of the Court.