Supreme Court Dismisses Contempt Petition for Non-Compliance of Undertaking to Vacate Flats in Cooperative Society Dispute. Court Holds That Contemnors' Failure to Vacate Does Not Amount to Willful Disobedience Given Ongoing Proceedings and Status Quo Orders.

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Case Note & Summary

The Supreme Court dismissed contempt petitions filed by Sant Lal Gupta and others against Umesh Kumar Jain and others for alleged willful disobedience of the Court's order dated 31.03.2017. The background involves a long-standing dispute over membership and allotment of flats in Modern Cooperative Group Housing Society Limited, Delhi. In 1987, the society expelled 27 members, including the contempt petitioners. After litigation, this Court on 18.10.2010 directed the society to re-admit those 14 expelled members and adjust them against unallotted flats. Meanwhile, new members (the alleged contemnors) had been inducted and allotted flats in 2002 through an illegal draw. The Registrar Cooperative Societies set aside their membership and allotment, which was upheld by the High Court on 31.01.2017. The Supreme Court dismissed the special leave petitions against the High Court order on 31.03.2017, granting three months' time to vacate subject to filing undertakings. The alleged contemnors filed undertakings on 13.04.2017 but failed to vacate. The contempt petitioners sought enforcement. However, on 25.01.2018, the Court passed a status quo order, which prevented the contemnors from vacating. The Court held that contempt proceedings cannot be sustained when compliance is prevented by a court order. The Court also noted that the contemnors had been in occupation for many years and had made substantial payments. The contempt petitions were dismissed, and the status quo order was directed to continue until further orders.

Headnote

A) Contempt of Court - Willful Disobedience - Undertaking to Vacate - The alleged contemnors filed undertakings to vacate apartments within three months as per Supreme Court order dated 31.03.2017, but failed to do so. However, subsequent status quo orders were passed on 25.01.2018, which prevented compliance. Held that contempt proceedings cannot be sustained when compliance is prevented by court orders (Paras 1-4).

B) Cooperative Society - Membership and Allotment - Expulsion and Re-admission - The dispute involved expulsion of 27 members from Modern Cooperative Group Housing Society Limited, their re-admission by order dated 18.10.2010, and subsequent allotment of flats to new members. The Registrar Cooperative Societies set aside the allotment to new members as illegal. Held that the new members were inducted in violation of law and their allotment was invalid (Paras 2-3).

C) Civil Procedure - Status Quo Order - Effect on Compliance - The Court passed status quo order on 25.01.2018, which effectively stayed the earlier direction to vacate. Held that the contemnors cannot be punished for non-compliance when a status quo order prevents them from vacating (Para 4).

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Issue of Consideration

Whether the alleged contemnors committed willful disobedience of the Court's order dated 31.03.2017 by failing to vacate the apartments despite filing undertakings, and whether contempt proceedings are maintainable in light of subsequent status quo orders.

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Final Decision

The Supreme Court dismissed the contempt petitions, holding that the alleged contemnors cannot be punished for contempt as the status quo order dated 25.01.2018 prevented them from vacating. The Court directed that the status quo order shall continue until further orders.

Law Points

  • Contempt of Court
  • Willful Disobedience
  • Undertaking to Vacate
  • Cooperative Society
  • Status Quo Order
  • Possession
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Case Details

2019 LawText (SC) (5) 42

Contempt Petition (Civil) Nos.1505-1506/2017 in Special Leave Petition (Civil) Nos.10375-10376 of 2017

2019-05-08

Uday Umesh Lalit

Sant Lal Gupta & Ors.

Umesh Kumar Jain & Ors.

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Nature of Litigation

Contempt petition for alleged willful disobedience of Supreme Court order directing vacation of apartments.

Remedy Sought

Direction to put contempt petitioners in possession of 12 apartments and punish contemnors for contempt.

Filing Reason

Alleged contemnors failed to vacate apartments despite filing undertakings as per Court order dated 31.03.2017.

Previous Decisions

Supreme Court order dated 31.03.2017 dismissing SLP and granting three months to vacate; High Court order dated 31.01.2017 directing vacation; Registrar Cooperative Societies order dated 24.02.2012 setting aside allotment; Supreme Court order dated 18.10.2010 directing re-admission of expelled members.

Issues

Whether the alleged contemnors committed willful disobedience of the Court's order dated 31.03.2017 by failing to vacate the apartments despite filing undertakings. Whether contempt proceedings are maintainable in light of subsequent status quo orders passed by the Court.

Submissions/Arguments

Contempt petitioners argued that contemnors filed undertakings but failed to vacate, constituting willful disobedience. Contemnors argued that they were inducted as members, paid all dues, and had been in occupation for years; also, status quo order prevented them from vacating.

Ratio Decidendi

Contempt proceedings cannot be sustained when compliance with an undertaking is prevented by a subsequent court order, such as a status quo order. The alleged contemnors' failure to vacate was not willful disobedience but due to the court's own order.

Judgment Excerpts

We do not see any reason to interfere with the impugned order(s) of the High Court. The special leave petitions are dismissed. Alleging that despite such undertakings, the alleged contemnors had failed in vacating the apartments in question and in handing over possession, the present contempt petition was filed. It was submitted on behalf of the alleged contemnors that they had been inducted as new members, had paid all the instalments which the society had demanded, and had been in occupation of the apartments for last several years.

Procedural History

The dispute began with expulsion of 27 members in 1987. Supreme Court on 18.10.2010 directed re-admission of 14 expelled members. New members approached Registrar, who set aside their allotment on 24.02.2012. High Court on 31.01.2017 directed vacation. Supreme Court on 31.03.2017 dismissed SLP and granted three months to vacate. Contempt petition filed on 04.08.2017. Status quo order passed on 25.01.2018.

Acts & Sections

  • Contempt of Courts Act, 1971:
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