Apex Court Issues Contempt Notice Against NCDRC Members For Defying Court's Order

The Bench of Justice Hima Kohli and Justice Ahsanuddin Amanullah, while refusing to take any lenient approach, observed, “Only after seeing your proper response, at this moment we are issuing a show cause notice to you as to why contempt of court proceedings should not be initiated for wilful defiance of the direction of the Court…we have perused the latest affidavit filed by the Presiding Member and the Member of the NCDRC, New Delhi and are of the view that the explanation offered is not satisfactory… we have interacted with the members and not satisfied with the explanation.”

Senior Advocate Ranjit Kumar appeared for the Appellant whereas Attorney General R Venkataramani appeared for the Respondents.

AGI Venkataramani, said, “I sincerely and unconditionally apologise. Please do not comprehend anything as being deliberate. Maybe I failed to convey…I did not find anything deliberate in this matter.”

The Bench also said that the Members had already taken judicial notice of the order passed by this Court, therefore, that cannot be washed away by the explanation submitted by them.

Justice Amanullah said, “Emphasis is on explanation, rather than apology…what to sign you have to be really very very careful.”

Justice Kohli said, “The order’s ramifications were serious. In a case where we have stayed proceedings in an execution, non-bailable warrants are issued against them…non-compliance of our order means they could have been behind the bars.”

AGI said, “That is certainly very wrong, nobody can say that the orders passed were right.”

Justice Amanullah remarked, “Mockery of this court.”

Justice Kohli further sternly remarked that the Members flouted the order and thereafter there was another date before them, so why they did not withdraw the order? She said, “So they had ample time to withdraw the order, but they decided to stick by it and adjourned matter sine die…and then they express contrition”

Justice Amanullah said, “They should have recalled the order immediately. Don't be hyper-technical…They should have withdrawn without discussing the next dates…They acted defiantly.”

Both the members were present in the Court, addressed the Court and accepted their mistake and apologised. The Court, however, refused to accept the unsatisfactory explanation given by them.

The Bench, on the request, gave the members an opportunity to file another explanation. The Bench directed that the officers must remain present on the next date of hearing as well. 

Previously the Court had shown its reservations in accepting the apology filed by Presiding Member Subhash Chandra and Member Dr. Sadhna Shanker of the NCDRC.

The Supreme Court previously had issued notice to the Presiding Member and the Member of the NCDRC. In pursuance of this, they both filed a joint affidavit dated April 20, 2024, stating that the error was inadvertent and unintended.

The Supreme Court gave relief to the Appellant-Company and directed that no coercive steps should be taken against them in the Execution Application pending before NCDRC, New Delhi.

The Court had directed the Members to file a reply to the show cause notice within one week of the date of the order and the Counsel for the Appellant was directed to bring the order to the notice of the members of the NCDRC.

In the present case, execution proceedings were initiated against the Company, which is a project developer of the project “The Corridors” located at Golf Course Extension Road, Sector-67-A, Tehsil & District Gurgaon, Haryana. The Respondent is one of the apartment buyers and complainant in the pending proceedings before NCDRC. It was the case of the Respondent that the Company Ireo Grace had failed to complete the project and hand over the possession to the Complainant despite making all payments.

Cause Title: M/s Ireo Grace Realtech Pvt. Ltd. v. Sanjay Gopinath (Civil Appeal Nos. 2764-2771/2022)