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Contempt of CourtSupreme Court of India

M/S Writers and Publisher Pvt Ltd v. A.K. Mishra, Official Liquidator

Contempt Petition (Civil) · 2018 INSC 532Decided 17 May 2018
Contempt Petition (Civil) Nos. 1665-1666 of 2017
Chief Justice Dipak Misra · Justice A.M. Khanwilkar · Dr. Justice D.Y. Chandrachud

Background

This contempt petition arose out of the decades-long Supreme Court-monitored revival of the cooperative retail chain "Super Bazar." After the Court had earlier approved a bid by M/s Writers and Publisher Pvt Ltd (WPL) to revive Super Bazar, the arrangement ultimately could not be implemented, and in 2016 the Court directed that WPL be refunded its entire investment with 6% interest, minus any profits earned, with the Comptroller and Auditor General (CAG) appointed to audit and verify the figures. WPL disputed aspects of the CAG's report (denial of interest on share capital, and adjustment for losses rather than only profits) and filed a contempt petition against the Official Liquidator alleging non-compliance with the Court's directions.

Decision Breakdown

The Supreme Court examined the CAG report and agreed with WPL on two points: that interest at 6% should apply to the entire investment including share capital, and that only profits (not losses) earned by WPL from running Super Bazar were to be deducted from its refund, since the 2016 order never contemplated deducting losses. However, on the contempt allegation itself, the Court accepted the Official Liquidator's explanation that the audit process was being carried out through the CAG-nominated auditor as directed, and therefore declined to hold the Official Liquidator in contempt. The Court directed all parties to act in accordance with this clarified interpretation of the 2016 order, and disposed of the contempt petitions.

Lesson Learnt

A contempt petition is meant to punish willful disobedience of a court's order, not to serve as a vehicle to re-litigate a genuine dispute over how an earlier order should be interpreted: here the Court clarified the ambiguity in its own prior directions but still declined to find the liquidator in contempt because he had followed the process the Court itself had set up.

M/S Writers and Publisher Pvt Ltd v. A.K. Mishra, Official Liquidator – Legal Case Shots | LegalAware