Contempt appeal lies only from a punishment order; dismissal of a contempt petition is not independently appealable.

An appeal against dismissal of a contempt application was held not maintainable because Section 19 of the Contempt of Courts Act, 1971 permits an appeal only from an order made in the exercise of jurisdiction to punish for contempt. Dismissal of the contempt petition as infructuous was not an order of punishment, so the party who had brought the alleged non-compliance to notice had no appealable grievance. The Tribunal's decision on whether to entertain or reject contempt remained within its exclusive domain, and no right of appeal arose under Section 61 of the Insolvency and Bankruptcy Code, 2016 in the absence of a punitive contempt order.

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Issues: Whether an appeal lay under Section 61 of the Insolvency and Bankruptcy Code, 2016 against dismissal of a contempt application, and whether Section 19 of the Contempt of Courts Act, 1971 permits an appeal at the instance of a party in whose favour the contempt petition was dismissed.

Analysis: The contempt proceedings were initiated under Section 425 of the Companies Act, 2013 read with the Contempt of Courts Act, 1971. Section 19 of the Contempt of Courts Act, 1971 confers an appeal only against an order or decision passed in the exercise of jurisdiction to punish for contempt. Dismissal of the contempt application as infructuous was not an order of punishment and, therefore, did not create an appealable grievance for the appellants. The power to entertain or reject contempt lies within the exclusive domain of the Tribunal, and the party who merely brought the alleged non-compliance to notice does not acquire a right of appeal unless punishment is imposed on the contemnor.

Conclusion: The appeal was not maintainable and was dismissed. The dismissal of the contempt application could not be challenged by the appellants under Section 19 of the Contempt of Courts Act, 1971 or Section 61 of the Insolvency and Bankruptcy Code, 2016.

Ratio Decidendi: A right of appeal in contempt matters arises only from a statutory order of punishment, and the complainant or informant cannot appeal against dismissal of the contempt petition in the absence of such punishment.

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