2025 (1) TMI 929 - HC - Indian Laws

Appeal under Section 19 dismissed as order granting release of deposited amount with interest lacks punitive nature

Delhi HC dismissed appeal under Section 19 of Contempt of Courts Act, 1971. Court held that appeals under Section 19 are maintainable only against orders ... Maintainability of appeal filed under Section 19 of the Contempt of Courts Act, 1971 - appellant submitted that the impugned order has been passed by the learned Single Judge without taking into consideration the entirety of the matter - violation of principles of natural justice - HELD THAT:- In order to understand the settled position of law regarding the appeals against the orders in contempt proceedings, it is pertinent for this Court to understand the interpretation of Section 19 of the Act. Therefore, it is apposite to mention the case of MIDNAPORE PEOPLES' CO-OP. BANK LTD. & ORS. VERSUS CHUNILAL NANDA & ORS. [2006 (5) TMI 537 - SUPREME COURT] wherein the Hon’ble Supreme Court has categorically observed that the appeal under Section 19 of the Act is maintainable only against an order in which punishment has been awarded to the contemnor. In view of the above case, the position of law pertaining to Section 19 of the Act is that the appeal against the orders passed in the contempt proceedings cannot be maintainable if such an order is devoid of any punishment or guilt imposed upon the contemnor. Therefore, in the instant case, the instant appeal under the said provision is maintainable before this Court only if the impugned order awarded punishment or held the appellant guilty of the contempt proceedings. Taking into consideration the contents of Section 19 of the Act as well as the case-laws mentioned hereinabove, this Court is of the considered view that an appeal under Section 19 of the Act, challenging the order passed in the contempt proceedings, is maintainable only when such an order records or imposes any punishment or guilt of the contemnor. However, upon perusal of the impugned order, it is clear that the learned Single Judge has merely directed the appellant to release the amount already deposited along with the interest accrued thereupon @ 6% p.a. till date while making concession towards the statutorily prescribed grace period of 120 days in favour of the respondent and therefore, the same cannot be construed to be punitive in nature. Conclusion - An appeal under Section 19 is maintainable only against an order or decision of the High Court passed in exercise of its jurisdiction to punish for contempt, that is, an order imposing punishment for contempt. Appeal dismissed. 1. ISSUES PRESENTED and CONSIDEREDThe judgment primarily revolves around the following legal issues:Whether the appeal filed under Section 19 of the Contempt of Courts Act, 1971, is maintainable when the impugned order does not impose any punishment or hold the appellant guilty of contempt.Whether the learned Single Judge erred in directing the release of the deposited amount along with interest without a formal application by the respondent.Whether the learned Single Judge's order directing the appellant to deposit the interest amount and release the principal amount is punitive in nature.2. ISSUE-WISE DETAILED ANALYSISIssue 1: Maintainability of the Appeal under Section 19 of the Contempt of Courts Act, 1971Relevant legal framework and precedents: Section 19 of the Contempt of Courts Act, 1971, provides for an appeal as of right from any order or decision of the High Court in the exercise of its jurisdiction to punish for contempt. The Supreme Court in Midnapore Peoples' Coop. Bank Ltd. v. Chunilal Nanda clarified that an appeal under Section 19 is maintainable only against an order imposing punishment for contempt.Court's interpretation and reasoning: The court interpreted that an appeal under Section 19 is maintainable only if the order in question records punishment or guilt of the contemnor. The court emphasized that the impugned order did not hold the appellant guilty nor did it impose any punishment.Application of law to facts: The court found that the learned Single Judge's order merely directed the release of the deposited amount with interest and did not record any finding of guilt or punishment, thus making the appeal non-maintainable under Section 19.Conclusions: The court concluded that the appeal was not maintainable as the impugned order was not punitive in nature.Issue 2: Direction to Release Deposited Amount Without Formal ApplicationRelevant legal framework and precedents: The court considered whether procedural requirements, such as filing a formal application, were necessary for the release of the deposited amount.Court's interpretation and reasoning: The court noted that the learned Single Judge had directed the release of the amount based on the circumstances and facts presented, without requiring a formal application.Key evidence and findings: The court observed that the learned Single Judge's order was based on the non-compliance with the previous order dated 7th December, 2017, which directed the release of the seized amount.Conclusions: The court did not find any procedural irregularity in the learned Single Judge's order to release the deposited amount.Issue 3: Nature of the Order Directing Deposit and Release of AmountRelevant legal framework and precedents: The court examined whether the order directing the deposit of interest and release of the principal amount was punitive.Court's interpretation and reasoning: The court determined that the order was not punitive as it did not impose any punishment or hold the appellant guilty of contempt. It was a direction to comply with the previous order.Conclusions: The court concluded that the order was not punitive and thus not appealable under Section 19.3. SIGNIFICANT HOLDINGSCore principles established: The appeal under Section 19 of the Contempt of Courts Act is maintainable only when the order imposes punishment or holds the contemnor guilty. Orders that are merely directive or procedural without punitive elements are not appealable under this section.Final determinations on each issue: The court dismissed the appeal, affirming that the impugned order was not punitive and thus not subject to appeal under Section 19.Verbatim quotes of crucial legal reasoning: 'An appeal under Section 19 is maintainable only against an order or decision of the High Court passed in exercise of its jurisdiction to punish for contempt, that is, an order imposing punishment for contempt.'The judgment concludes by dismissing the appeal, emphasizing the non-punitive nature of the impugned order and the lack of maintainability under Section 19 of the Contempt of Courts Act, 1971.