Madras High Court
Mr. G.Rathinavelu vs R.Giridharan on 8 July, 2025
Cont.P.No.1260 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 08.07.2025
CORAM :
THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE SUNDER MOHAN
Cont.P.No.1260 of 2022
1. Mr. G.Rathinavelu
Son of V.Guruswamy, No. 24,
Cenotaph I Street, Teynampet,
Chennai-600 018. and another
2. Mr. G.Sundaravadivelu
Son of V.Guruswamy, No.39,
Sundareswaran kovil Street,
Mylapore, Chennai-600 004.
Petitioner(s)
Vs
1. R.Giridharan
General Manager, Indian Overseas
Bank, Cathedral Branch, No.762,
Anna Salai, Chennai-600 002.
2. L. Prabhakar
Assistant General Manager
Indian Overseas Bank,
Cathedral Branch
No.762, Anna Salai
Chennai-600 002.
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Cont.P.No.1260 of 2022
3.Ashok Choudhary
Assistant General Manager
Indian Overseas Bank
Cathedral Branch
No. 762, Anna Salai
Chennai-600 002.
4.Indian Overseas Bank
Rep by its Assistant General
Manager, Cathedral Branch, No.762,
Anna Salai, Chennai 600 002.
5.Mr. Ajay Kumar Srivatsava,
Managing Director and Chief
Executive Officer
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
6.Mr. T. Dhanaraj,
Executive Director
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
7.Mr. Srinivasan Sridhar,
Non-Executive Chairman
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
8.Mr. Joydeep Dutta Roy,
Executive Director
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
9.Ms. Neelam Agarwal,
Govt. Nominee Director
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
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Cont.P.No.1260 of 2022
10.Ms. Sonali Sen Gupta,
RBI Nominee Director
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
11.Mr. Suresh Kumar Rungta,
Govt. Nominee Director
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
12.Mr. B. Chandra Reddy,
Govt. Nominee Director
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
13.Mr. Deepak Sharma,
Govt. Nominee Director
Indian Overseas Bank
763, Anna Salai, Chennai 600 002.
14.M. Sanjaya Rastogi,
Shareholder Director
Indian Overseas Bank,
763, Anna Salai, Chennai 600 002.
[Impleaded as 4th to 14th
Respondents vide order dated
03.12.2024]
[Respondent Nos.7 & 9 to 14 are not
parties vide order dated 21.01.2025
in Sub.A.No.1354/24]
Respondent(s)
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Cont.P.No.1260 of 2022
Prayer : Petition filed under Sections 11 of the Contempt of Court Act, 1971
to punish the respondents for wilful disobedience and violation of the order
dated 04.12.2019 in W.M.P.No.33866 of 2019 in W.P.No.33396 of 2019.
For Petitioners : Ms.Tushitha B
For M/s. Ramya Subramaniam
For Respondents : Mr.Vijay Narayan
Senior Counsel
For Mr.S.Sathiyanarayanan
ORDER
(Order of the Court was made
by the Hon'ble Chief Justice)
Petition was admitted on 03.12.2024. The contempt alleged is of an
order dated 04.12.2019 passed by this Court. By the said order, this Court
was pleased to grant ad-interim injunction as prayed for till 21.01.2020,
which date was extended from time to time. The ad-interim prayer granted
reads as under:
“Grant an order of interim injunction restraining the
respondent from taking any coercive steps against the
petitioners or their properties pending disposal of the writ
petition and pass such further or other orders and thus render
justice.”
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2. It is petitioners' case that by filing short notes on facts dated
01.03.2022 before National Company Law Tribunal, Chennai, respondents
had committed contempt because pursuant to that application, orders have
been passed by National Company Law Tribunal. It is petitioners' case that
by submitting in the short notes that “in the instant case, the default is
established. Therefore, the financial creditor is entitled to trigger the
Corporate Insolvency Resolution Process (CIRP) by getting admission of
the application bearing No.CP(IBA)/49/2019 and it is prayed
accordingly”, respondents had taken coercive steps against petitioners and
therefore, there is contempt. It is submitted in the petition that despite
recording in the short notes that the Court has granted an order of ad-
interim injunction restraining the financial creditor from taking any
coercive steps against the properties, respondents have sought to trigger
the CIRP.
3. Notice was issued and reply has been filed. Respondent No.7 has
filed reply and others have adopted the affidavit-in-reply filed by
respondent No.7.
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4. An order has been passed by National Company Law Tribunal on
09.12.2021, by which, parties were directed to file written submissions in
respect of the interim order passed by this Court. Pursuant to that
direction, submissions were filed, in which, the statements, as recorded
above, allegedly in contempt, have been made.
5. The fact is, thus, written submissions were filed in response to the
order passed by the National Company Law Tribunal. In the written
submissions, respondents have brought to the notice that there is an order
dated 04.12.2019 (which is alleged to have been breached contemptuously)
in force. Respondents' interpretation of the order was that the High Court
had not stayed the proceedings before the National Company Law Tribunal.
It was respondents' interpretation also that the default having been
established, financial creditor is entitled to trigger the CIRP by getting
admission of the application. In our view, it cannot be stated to be wilful
disobedience of the order passed by this Court.
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6. We should also note that this submission of respondents has been
accepted by National Company Law Tribunal which triggered the CIRP
process and appeal against that by petitioners was dismissed by National
Company Law Appellate Tribunal. Petitioners carried the matter forward to
the Apex Court which also dismissed the Special Leave Petition.
7. Shri. Vijay Narayan submits that this point that an injunction was
granted by this Court was not canvassed before the Apex Court. In our
view, we do not have to go that far since an interpretation of an order, as
understood by a party, cannot be stated to be wilful disobedience of the
order.
8. It will be useful if we refer to a judgment of a Division Bench of
Bombay High Court in Principal Commissioner of Income Tax v.
ICICI Bank Ltd1, where, the Court, while considering Section 271(1)(c) of
the Income Tax Act, 1961, which prescribes penalty for concealment, held
that a mere making of the claim, which is not sustainable in law itself, will
12024 (161) taxmann.com 454 (Bom.)
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not amount to furnishing the inaccurate particulars regarding the income
of the assessee and such claim made in the returns cannot amount to be
furnishing inaccurate particulars. Therefore, the mere taking of a stand
based on their understanding of an order passed cannot be stated to be
wilful disobedience of the order of the Court.
9. Moreover, we must observe that the petition in which the interim
order was passed itself came to be dismissed by an order dated 03.04.2025
passed by this Court. In fact, the petition was dismissed with cost of
Rs.2,50,000/- imposed on each of petitioners, which, we are informed is
yet to be paid. The cost was to be paid within four weeks of 03.04.2025,
which got over on 01.05.2025.
10. Shri. Vijay Narayan submitted that in fact it is petitioners who are
in contempt now.
11. Ms.Tushitha submitted that Special Leave Petition has been
preferred against the order of this Court dated 03.04.2025 and was candid
to submit that there is no stay.
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12. Petition is dismissed.
(K.R.SHRIRAM, CJ) (SUNDER MOHAN,J.)
08.07.2025
Index : Yes/No
Neutral Citation : Yes/No
kpl
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THE HON'BLE CHIEF JUSTICE
AND
SUNDER MOHAN,J.
(kpl)
08.07.2025
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