TaxTMI 
TaxTMI 
2026 (7) TMI 102
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....h Ms. Udita Singh, Ms. Soumya Sai Kumar, Ms. Diksha Gupta, Advocates for R-1 Mr. Harshit Khare, Mr. Prafful Saini, Mr. Ayuj Agarwal, Advocates for SBI JUDGEMENT Per Justice N. Seshasayee, Member (Judicial) 1. The facts, and the quintessential aspects of the arguments on either side have been captured by us in our order dated 20.04.2026, and to avoid duplication of our efforts, the said order is reproduced below: "This contempt application is taken out to initiate an action for contempt against Liquidator for breach of an order of this Tribunal, dated 11.03.2026. A short background of this petition may be provided: (a) The Corporate debtor was drawn into liquidation and the appellant herein was the Successful Re....
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....ccording to the liquidator, on 16.02.2026 he had received the money which he made over to State Bank of India on 17.02.2026 after adjusting the liquidation costs and fees and other related cost. In this backdrop, on 11.03.2026 when the matter came before a coordinate bench of this Tribunal both sides had agreed that this matter was taken-up by the Bench at about 01:30 p.m., shortly before the court rose for lunch and the Tribunal had passed following order on 11.03.2026 : "11.03.2026" List this appeal on 01.04.2026. It is submitted by the appellant that Liquidator has sold one of the asset. The amount received shall be kept in the interest bearing account. According to Ld. Counsel for the Contemnor/ the Liquidator, the amo....
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.... and 17.02.2026. The same shows that the liquidator has transferred amounts from the CD's account even on 17.02.2026. When the factum of disbursement of the amount on 17.02.2026 is shown to be indisputable, it is evident that when on 11.03.2026, this Tribunal passed the aforesaid Order, the said fact of disbursement of the amount by the liquidator has not been brought before it. Here it should also be underscored that this Order of 11.03.2026 was passed at the stroke of lunch break, and not after any elaborate arguments on either side. It is hence I.A. No. 2328 of 2026 which the liquidator filed has become relevant for deciding this contempt petition. 3. The short issue is, whether the liquidator has wilfully disobeyed the Order of t....
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....execution proceeding, and the role of the petitioner initiating an action for contempt of court stops with bringing to the notice of the Court about the perceived violation of any judicial Order passed by it. Once so informed, it will be an issue between the court and the alleged contemnor, where the court will assume the role of the prosecutor, a role which the Court assumes not by virtue of any arrogance of its authority but by its sense of duty to preserve its own dignity, since any act of contempt erodes the public confidence in judicial institutions. In that sense, a proceeding for contempt is not an adversarial proceeding in character. It is for the Court and up to the Court to decide what constitutes contempt and how to deal with it.....