Civil contempt requires wilful disobedience; a bona fide, reasoned stay decision on relevant materials will not attract punishment.

Civil contempt requires a prior order and its wilful, conscious and contumacious disobedience; a bona fide decision taken on relevant materials does not suffice. The Delhi High Court noted that the fresh consideration of the assessee's stay application relied on CBDT office memoranda, payment history, and the absence of proof of weak financial condition. Because the later order showed application of mind and was not a deliberate defiance of the earlier direction, no civil contempt was made out. The contempt proceedings were therefore dropped and no punitive action followed.

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Issues: Whether the respondent committed civil contempt by wilfully disobeying the order directing fresh consideration of the assessee's stay application.

Analysis: Civil contempt under Section 2(b) of the Contempt of Courts Act, 1971 requires a judgment, order or direction and its wilful disobedience. Wilful disobedience signifies a conscious, intentional and contumacious breach, and mere error of judgment, brief reasoning, or a bona fide decision taken on relevant materials does not suffice. The order dated 05.04.2019 was founded on the CBDT office memoranda governing stay of demand, the assessee's payment history, and the absence of material showing weak financial condition. The order therefore reflected application of mind and could not be treated as a deliberate defiance of the earlier direction.

Conclusion: No civil contempt was made out against the respondent.

Final Conclusion: The contempt proceedings were dropped, and no punitive action followed against the respondent.

Ratio Decidendi: A contempt finding for disobedience of a court order can be sustained only where the breach is wilful and contumacious; a reasoned decision taken bona fide on relevant considerations, even if imperfect or brief, does not amount to civil contempt.

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