Rupa and Co. Limited and Another v. Firhad Hakim and Others
Background
In 2011, a West Bengal state housing agency (HIDCO) agreed to convey a plot of land to the appellants on a freehold basis for about Rs. 4 crore, which the appellants paid in full. HIDCO later tried to convert the deal to a 99-year leasehold and then to charge a much higher "market rate," leading to prolonged litigation. The Calcutta High Court's Division Bench ruled in the appellants' favour in 2020 (upheld by the Supreme Court in 2021), but the State kept failing to comply, and when contempt proceedings dragged on, the High Court eventually referred the dispute to mediation over the appellants' objection.
Decision Breakdown
The Supreme Court held that once a High Court's writ of mandamus has been upheld and not interfered with by the Supreme Court, all authorities are bound to obey it in letter and spirit, and a court cannot force unwilling parties into mediation in the middle of contempt proceedings, since mediation requires mutual consent. The Court found the State's conduct - repeatedly delaying compliance and then demanding a hugely inflated market price after losing in court - amounted to aggravated contempt and an attempt to defeat the mandamus. It quashed the High Court's mediation order, declined to remand the matter (given 12 years of litigation), and directly directed the Chief Secretary of West Bengal to comply with the 2020 High Court order, warning that he must personally appear before the Court to show cause for contempt if compliance was not reported by the next hearing date.
Lesson Learnt
A government authority cannot indefinitely stall compliance with a final court order by manufacturing new conditions or pushing for mediation the other side never agreed to - courts can and will hold individual officials personally accountable to enforce the "majesty of law."