In events affidavit and bond filed for retrieval of money from court’s registry non- complied, would make the appellants as well as their legal heirs accountable for “Criminal Contempt of Court”- Delhi HC
Title- Bigdot Advertising and Communications Pvt. Ltd v. Union of India
Decided on: 3rd of October, 2023
+ RFA(OS) 128/2013
Introduction
The present appeal is filed by the Directors of the Appellant Company for modification of the judgment given on 27th November 2012 in the suit CS(OS) No. 226/2000, to retrieve the amount lying with the registry of the court.
The Hon’ble High Court directed the Appellants to file for an Affidavit of Undertaking along with the Indemnity Bond, and highlighted that non-compliance with either Affidavit or Bond would make the directors and their legal heirs liable for civil and criminal actions, case any such situations arise and they would also be made liable for “Criminal Contempt of Court”.
Facts of the case
In 1992, Bigdot Advertising and Communications Pvt. Ltd was incorporated. At that time Mr. Satyapal Anand along with his two sons Rajeev and Vimal Anand were Directors of the company.
On 4th of December, 2018 Me. Satyapal Anand passed away, leaving his two sons Rajeev and Vimal as the current directors of the company.
After the father’s death, both the sons decided to no longer continue with the advertisement business.
Initially, a suit CS (OS) No. 226/2000 was filed by the Appellant/Plaintiff to recover the total sum of Rs 3,16,39,009/- along with the outstanding amount, accrued interest, and damages.
The court of single judge bench gave its judgment on 27th Nov 2012 and ordered defendant no. 2 to deposit a sum of Rs. 1,36,01,743,20/- along with other interests, in the court itself and said that the particular amount would only be released when the plaintiff clears their negotiated dues with other publications where they would have done advertisement.
Since both the parties wanted to close the business and that amount had been residing with the registry and they wanted to retrieve it the present appeal was filed.
Court Judgement and Analysis
In the initial hearings the counsel for the appellant submitted before the Hon’ble HC that the Respondent no. 2 as advised through the lower courts Judgement deposited the entire amount which had been lying in this court for so long, it’s been ten years since that decision and no agency have come with a dispute against the appellant to settle their claims as all the negotiated dues to all the publications including newspaper and magazines have already been settled by the Appellant.
Hence the counsel prayed for the release of that money from the court’s registry, he also submitted that in case the court agrees to release the demanded fund subject to the appellant filing an undertaking that in case any publication claim payment arises they would be liable to settle the claim from their own pockets, if the court does so then the Appellants are not interested in filing of RFA as it would only lengthen the process.
Parties then filed for both the documents and court by accepting the documents held that in case of any non-compliance with the documents the two of the directors would be held jointly, severally, and personally bound by the same and them along with their legal heirs in case of any dispute, would be subject to civil and criminal actions and also be made liable for Criminal Contempt of the Court.
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Written by- Aditi