TaxTMI 
TaxTMI 
2026 (2) TMI 291
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....d against the Corporate Debtor on an application under Section 9 filed by Virendra Prakash Gupta proprietor of Virendra Textiles. The Corporate Debtor had obtained financial facilities from ICICI Bank for securing the facilities from ICICI Bank. Personal guarantor of the Corporate Debtor has given guarantee by mortgaging the assets. Appellant was one of the mortgagor of its immovable property to the ICICI Bank. ICICI Bank issued a notice under Section 13(2) of the SARFAESI Act to the Corporate Debtor, the borrower as well as guarantors including the Appellant. In pursuance of the notice under Section 13(2) dated 15.01.2025, possession notice under Section 13(4) dated 29.05.2025 was issued by the ICICI Bank and possession of mortgaged assets were taken. The Appellant, the Suspended Director of the Corporate Debtor filed Contempt Application (IB) No. 1/CB/2025 against the officials of the ICICI Bank which application came to be heard and dismissed in limine by order dated 18.08.2025. Appellant aggrieved by the said order has filed the Appeal. 3. Counsel for the Appellant challenging the order submits that the CIRP having commenced on 30.01.2025 against the Corporate Debtor taking ....
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.... a case where Special Appeal was filed against the order of Single Judge. In the above case, High Court has referred to the judgment of the Hon'ble Supreme Court in "Midnapore Peoples' Co- operative Bank Ltd. & Ors. vs. Chunilal Nanda & Ors.- (2006) 5 SCC 399". The Hon'ble Supreme Court in "Midnapore Peoples' Co-operative Bank Ltd. & Ors." (supra) had occasion to consider the maintainability of an Appeal under Section 19 of the Contempt of Courts Act against an order passed in Contempt of Courts Act. In paragraph 11 of the judgment after considering all cases have laid down following:- "11. The position emerging from these decisions, in regard to appeals against orders in contempt proceedings may be summarised thus: I. 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. II. Neither an order declining to initiate proceedings for contempt, nor an order initiating proceedings for contempt nor an order dropping the proceedings for contempt nor an order acquitting or exonerating the contemnor, is appealab....
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....s was not in consideration of the Hon'ble Supreme Court in "Midnapore Peoples' Co- operative Bank Ltd. & Ors." (supra). In paragraph 9 of the judgment, Allahabad High Court observed as follows:- "9. The question of maintainability of Special Appeal under Chapter VIII Rule 5 of the Allahabad High Court Rules was not in consideration of the Hon'ble Supreme Court in case of Midnapore Peoples' Coop. Bank Ltd. (supra). It is settled law that a precedent is to be applied in light of the law laid down in that case in view of the factual background and in view of the points involved in the case. Since Chapter VIII Rule 5 of the Allahabad High Court Rules was not in issue before the Hon'ble Supreme Court in the case of Midnapore Peoples' Coop. Bank Ltd. (Supra), this judgment is not relevant for deciding the maintainability of the present special appeal filed under Chapter VIII Rule 5 of the Allahabad High Court Rules against an order dismissing a contempt petition." 11. In the facts of that case, Allahabad High Court held that the order of Single Judge was not correct and Appeal was maintainable. The judgment relied by Counsel for the Appellant does not support ....
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....y such order made by the High Court. The order or the decision must be such that it decides some bone of contention raised before the High Court affecting the right of the party aggrieved. Mere initiation of a proceeding for contempt by the issuance of the notice on the prima facie view that the case is a fit one for drawing up the proceeding, does not decide any question. This Court, for the first time, cannot be asked in such an appeal to decide whether the person proceeded against has committed contempt of the High Court or not. The matter has to be decided either finally or, may be, even at an earlier stage an order is made, which does decide a contention raised by the alleged contemner asking the High Court to drop the proceeding. It is neither possible, nor advisable, to make an exhaustive list of the type of orders which may be appealable to this Court under Section 19. A final order, surely, will be appealable. Our attention was drawn by Mr Mohan Behari Lal, to Section 20 of the Act which provides : "No court shall initiate any proceedings for contempt, either on its own motion or otherwise, after the expiry of a period of one year from the date on which the contem....