ASHISH SETH versus SUMIT MITTAL AND OTHERS

ASHISH SETH versus SUMIT MITTAL AND OTHERS

The Court found on the material that the Seth Group had largely complied with the MoS except for the balance of its EDC payment (having paid Rs.9.40 crores and furnished guarantees) and that the Mittal Group/TFIPL had not fulfilled specific obligations (Clauses 1.2, 5.3 and 8) including depositing the balance EDC and completing formalities necessary for renewal and bifurcation of licenses. Consequently the Mittal Group/TFIPL rendered themselves liable under the Contempt of Courts Act; however the Court granted them two months (from lifting of local lockdown) to perform specified obligations (payment of EDC except Seth share, Seth to pay its Rs.25,27,92,000 with interest, renewal of...

Parties
Applicant/petitioner: Ashish Seth; Respondent/contemnor: Sumit Mittal; Respondent/contemnor: Madhur Mittal; Third Party/tfipl: Triveni Ferrous Infrastructure Private Limited; Applicant/group of Parties to Mo S: Seth Group; Respondent/group of Parties to Mo S: Mittal Group; Applicant in Contempt Petitions No.257/2016 & 889/2017: Maximal Infrastructure Private Limited
Jurisdiction
India
Judgment Date
10 April 2020
Procedural Posture
Contempt Petition in Writ Petition (criminal) No.5/2015 Under Article 32 / Judgment Disposing Contempt Petitions and Issuing Directions (order Dated 24.04.2020)
Outcome
Contempt Petition (C) No.34/2016: respondents (Sumit Mittal, Mathur/Madhur Mittal and TFIPL) held liable for non-fulfillment of MoS obligations and given two months to comply; Contempt Petition (C) No.257/2016 and Contempt Petition (C) No.889/2017 dismissed; matter (CP No.34/2016) to be listed after three months.
Legal Topics
Enforcement of Consent Settlement/memorandum of Settlement, EDC (external Development Charges) Liability and Payment, License Renewal and Bifurcation, Issuance of GPA, Board Resolution and NOC, Directors/board Resignations and Corporate Control
Contempt of Court Constitutional Law (article 32) Property/land Development Law Company Law Enforcement of Consent Settlement/memorandum of Settlement EDC (external Development Charges) Liability and Payment License Renewal and Bifurcation Issuance of Gpa, Board Resolution and NOC +1 more

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Parties

Ashish Seth

Applicant/petitioner

Sumit Mittal

Respondent/contemnor

Madhur Mittal

Respondent/contemnor

Triveni Ferrous Infrastructure Private Limited

Third Party/tfipl

Seth Group

Applicant/group of Parties to Mo S

Mittal Group

Respondent/group of Parties to Mo S

Maximal Infrastructure Private Limited

Applicant in Contempt Petitions No.257/2016 & 889/2017

Procedural Posture

Contempt Petition in Writ Petition (criminal) No.5/2015 Under Article 32 / Judgment Disposing Contempt Petitions and Issuing Directions (order Dated 24.04.2020)

Legal Issues

  1. 1 Whether the Mittal Group and TFIPL willfully disobeyed the Memorandum of Settlement dated 04.05.2015 and the consent order of this Court dated 05.05.2015
  2. 2 Whether the Seth Group had complied with its obligations under the MoS
  3. 3 Whether failure to perform obligations under the MoS warrants contempt proceedings under the Contempt of Courts Act

Ratio Decidendi

The Court found on the material that the Seth Group had largely complied with the MoS except for the balance of its EDC payment (having paid Rs.9.40 crores and furnished guarantees) and that the Mittal Group/TFIPL had not fulfilled specific obligations (Clauses 1.2, 5.3 and 8) including depositing the balance EDC and completing formalities necessary for renewal and bifurcation of licenses. Consequently the Mittal Group/TFIPL rendered themselves liable under the Contempt of Courts Act; however the Court granted them two months (from lifting of local lockdown) to perform specified obligations (payment of EDC except Seth share, Seth to pay its Rs.25,27,92,000 with interest, renewal of...

Court Disposition

Contempt Petition (C) No.34/2016: respondents (Sumit Mittal, Mathur/Madhur Mittal and TFIPL) held liable for non-fulfillment of MoS obligations and given two months to comply; Contempt Petition (C) No.257/2016 and Contempt Petition (C) No.889/2017 dismissed; matter (CP No.34/2016) to be listed after three months.

Orders

  • Dismiss Contempt Petition (C) No.257/2016 and Contempt Petition (C) No.889/2017
  • Grant the respondents (Shri Sumit Mittal, Shri Madhur/Mathur Mittal and TFIPL) two months from lifting of local lockdown to: (i) pay the entire EDC liability of TFIPL with interest in relation to license Nos.34,35 and 36 except the share of EDC liability undertaken by the Seth Group under Clause 1.2 of the MoS; (ii)...