M/S Chithra Woods Manors Welfare Association v. Shaji Augustine
Background
The respondent had licensed a 96-unit studio apartment property in Munnar, Kerala from the petitioner association for 10 years at Rs. 12 lakh per month, but soon defaulted, leading to years of litigation across an arbitrator, the district court, and the Kerala High Court, eventually resulting in a 2017 court-recorded settlement reducing his dues. When execution proceedings for non-payment led to an order for him to hand over the property, he approached the Supreme Court, which as an interim measure directed him in November 2022 to pay Rs. 12 lakh per month going forward plus arrears in instalments: an order he never complied with despite continuing to occupy and profit from the property, prompting the association to file this contempt petition.
Decision Breakdown
The Supreme Court found that the respondent had never paid a single rupee towards the arrears despite having sought the Court's account details for the transfer, and despite representing at the time that the payment terms were workable. Rejecting his later plea of financial incapacity, noting he never approached the Court to modify or withdraw the order if he genuinely could not comply, and that he continued to profit from running a resort on the property throughout. The Court held this amounted to wilful and deliberate disobedience of its order, constituting civil contempt under Section 2(b) of the Contempt of Courts Act, 1971. The Court held the respondent guilty of contempt, sentencing him to three months' simple imprisonment plus a fine of Rs. 20,000 (with a further month's imprisonment in default), while giving him a final 30-day window to purge the contempt by complying with the original 2022 payment order.
Lesson Learnt
Ignoring a Supreme Court order, especially one you yourself asked the Court to pass in your favour, while continuing to enjoy its benefits is treated as a serious, punishable contempt of court; if compliance genuinely becomes impossible, the correct course is to go back to the court and seek modification, not simply not pay.