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        Insolvency and Bankruptcy

        2020 (12) TMI 704 - Tri - Insolvency and Bankruptcy

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        Contempt application dismissed for lack of filing status report, parties to continue monthly filings. The contempt application was dismissed as the respondents were found not liable for contempt due to the original order lacking mention of filing the ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Contempt application dismissed for lack of filing status report, parties to continue monthly filings.

                            The contempt application was dismissed as the respondents were found not liable for contempt due to the original order lacking mention of filing the required status with the tribunal. The tribunal clarified the order and directed the parties to continue filing monthly status of the company's affairs until partition proceedings. No costs were imposed, and the registry was instructed to send copies of the order to all parties and counsel via email.




                            Issues:
                            Contempt proceeding for disobedience of tribunal's order.

                            Analysis:
                            The unnumbered application was filed to initiate contempt proceedings against the alleged contemnor for willfully disobeying the tribunal's order dated February 11, 2020, directing disclosure of company's accounts. The main company petition challenged acts of oppression and mismanagement by respondent nos. 2 to 9. Despite reminders, respondents failed to comply with the order, showing disregard for tribunal's directions. The tribunal had directed preparation of monthly status of company's affairs till partition proceedings, maintaining status quo of shareholdings and fixed assets. Parties were to complete pleadings within 3 weeks each.

                            The tribunal noted that the respondents claimed compliance with the order and argued against contempt. Respondents maintained that they were preparing the required status regularly, and there was no direction to file it with the tribunal. They argued that the application was not maintainable and cited relevant judgments. Petitioner's counsel argued that the cited judgments were not applicable as no civil suit was pending, and any party could file a partition suit.

                            After hearing both parties, the tribunal left it to the parties to decide who would file the suit for partition. It directed respondents to continue filing monthly status of company's affairs till partition proceedings. Since the original order lacked mention of filing with the tribunal, respondents were not liable for contempt. The tribunal clarified the order and directed filing of reply affidavit within two weeks by respondents and rejoinder by the petitioner. As there was no violation of tribunal's orders, the contempt application was dismissed with no costs imposed. The registry was directed to send copies of the order to all parties and counsel via email.
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                            ActsIncome Tax
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