Case: Bharat S. Shah &amp; Others Vs. Rajkumar Jugalkishore Sarad

this Court under section 19 from such an order although the proceeding has remained pending in the High Court.22. In our view, that was in the context that an appeal from an order imitating the contempt proceedings in a given case can be entertained, particularly those where the order decides some disputes raised before the Court by the contemnor asking it to drop the proceedings on one ground or the other. But in the case of Purshotam Dass Goel vs. Justice B. S. Dhillon (supra), the Supreme Court has in terms accepted the preliminary objection raised on behalf of the respondent i.e. the Learned Solicitor General that no appeal lies to this Court under section 19 of the Act from an order issuing notice as nothing yet has been decided by the High Court. The Supreme Court has expressed that it would appear from a plain reading of the section that an appeal shall lie to this Court as a matter of right from any order or decision of the Bench of the High Court if the order has been made in the exercise of its Jurisdiction to punish for contempt. No appeal can lie as a matter of right from any kind of order made by the High Court in the proceeding for contempt. The proceeding is initiated under section 17 by issuance of a notice. Thereafter, there may be many interlocutory orders passed in the said proceeding by the High Court. It could not be the intention of the legislature to provide for an appeal to this Court as a matter of right from each and every such order made by the High Court. The order or the decision must be such that it decides some bone of contention raised before the High Court affecting the right of the party aggrieved. Mere initiation of a proceeding for contempt by the issuance of a notice on the prima facie view that the case is a fit one, for drawing up the proceeding, does not decide any question. (emphasis supplied)23. In the present case, the learned single Judge while considering whether to initiate the proceedings for contempt has only expressed a prima facie view for justifying initiation of the proceedings without anything further and has not decided any issue against the alleged contemnor i.e. the appellant and therefore, there was no decision in the matter of the nature affecting the right of the party aggrieved.24. In the case of Midnapore Peoples Co-op. Bank Ltd. and others vs. Chunilal Nanda and others (supra), the Honourable Supreme Court had an occasion to exhaustively deal with the subject of maintainability of an appeal on the following issues(i) Where the High Court, in a contempt proceeding, renders a decision on the merits of a dispute between the parties, either by an interlocutory order or final judgment, whether it is appealable under section 19 of the Contempt of Courts Act, 1971 If not, what is the remedy of the person aggrieved(ii) Where such a decision on merits is rendered by an interlocutory order of a learned Single Judge, whether an intra-Court appeal is available under Clause 15 of the Letters Patent(iii) In a contempt proceeding initiated by a delinquent employee (against the enquiry officer as also the Chairman and Secretary in charge of the employer Bank), complaining of disobedience of an order directing completion of the enquiry in a time-bound schedule, whether the Court can direct (a) that the employer shall reinstate the employee forthwith; (b) that the employee shall not be prevented from discharging his duties in any manner; (c) that the employee shall be paid all arrears of salary; (d) that the enquiry officer shall cease to be the enquiry officer and the employer shall appoint a fresh enquiry officer; and (e) that the suspension shall be deemed to have been revoked25. The Court has also taken into consideration the decision of the Court in the case of Purshotam Dass Goel vs. Justice B. S. Dhillon (supra) and after taking into consideration various decisions in regard to the appeal against order in contempt proceedings, in reply to the first issue has summarized thusI) An appeal under section 19 is maintainable only against an order or decision of the High Court passed in exercise of its jurisdiction to punish for contempt, that is, an order imposing punishment for contempt.II) Neither an order declining to initiate proceedings for contempt, nor an order initiating proceedings for contempt nor an order dropping the proceedings for contempt nor an order acquitting or exonerating the contemnor, is appealable under section 19 of the CC Act. In special circumstances, they may be open to challenge under Article 136 of the Constitution.III) In a proceeding for contempt, the High Court can decide whether any contempt of Court has been committed, and if so, what should be the punishment and matters incidental thereto. In such a proceeding, it is not appropriate to adjudicate or decide any issue relating to the merits of the dispute between the parties.IV) Any direction issued or decision made by the High Court on the merits of a dispute between the parties, will not be in the exercise of "Jurisdiction to punish contempt" and, therefore, not appealable under section 19 of the CC Act. The only exception is where such direction or decision is incidental to or inextricably connected with the order punishing for contempt, in which event the appeal under section 19 of the Act, can also encompass the incidental or inextricably connected directions.V) If the High Court, for whatsoever reason, decides an issue or makes any direction, relating to the merits of the dispute between the parties, in a contempt proceedings, the aggrieved person is not without remedy. Such an order is open to challenge in an intraCourt appeal (if the order was of a learned Single Judge and there is a provision for an intra Court appeal), or by seeking special leave to appeal under Article 136 of the Constitution of India (in other cases).

Court's decision (1 = petition accepted / positive for appellant, 0 = rejected / negative): 0

Reasoning from the judgment:
0[ds]We do not think it necessary to reproduce the terms and conditions recorded in the consent terms but needless to state that there are undertakings given to the Court by the parties which have been accepted by the learned Judge of the Small Causes while disposing of the suit between the parties.In the case at hand, the question relates to abiding by the undertaking given to the Court as recorded in the Consent Terms may be that the undertakings were given on happening of certain contingencies that is the issue which will be examined by the learned Judge while dealing with the petition onthe Supreme Court, the issue contended on behalf of the appellants was that in the circumstances, there was no basis for the contempt application and that the High Court ought not to have issued rule in the matter at all and that is how the Supreme Court came to the conclusion that under the coercion of contempt proceeding, the appellants cannot be directed to pay the compensation amount which they are disputing by asserting that the claimants were not the owners of the property in question and that decree was obtained by suppressing material facts and by fraud and if at all the High Court did not grant any stay to the compensation awarded by the trial Court they could have recovered the same by executing the award and, therefore, in such a situation there was no wilful disobedience of the order and the initiation of contempt proceedings was wholly unjustified.In our view, that was in the context that an appeal from an order imitating the contempt proceedings in a given case can be entertained, particularly those where the order decides some disputes raised before the Court by the contemnor asking it to drop the proceedings on one ground or the other. But in the case of Purshotam Dass Goel vs. Justice B. S. Dhillon (supra), the Supreme Court has in terms accepted the preliminary objection raised on behalf of the respondent i.e. the Learned Solicitor General that no appeal lies to this Court under section 19 of the Act from an order issuing notice as nothing yet has been decided by the High Court. The Supreme Court has expressed that it would appear from a plain reading of the section that an appeal shall lie to this Court as a matter of right from any order or decision of the Bench of the High Court if the order has been made in the exercise of its Jurisdiction to punish for contempt. No appeal can lie as a matter of right from any kind of order made by the High Court in the proceeding for contempt. The proceeding is initiated under section 17 by issuance of a notice. Thereafter, there may be many interlocutory orders passed in the said proceeding by the High Court. It could not be the intention of the legislature to provide for an appeal to this Court as a matter of right from each and every such order made by the High Court. The order or the decision must be such that it decides some bone of contention raised before the High Court affecting the right of the party aggrieved. Mere initiation of a proceeding for contempt by the issuance of a notice on the prima facie view that the case is a fit one, for drawing up the proceeding, does not decide any question. (emphasisIn the present case, the learned single Judge while considering whether to initiate the proceedings for contempt has only expressed a prima facie view for justifying initiation of the proceedings without anything further and has not decided any issue against the alleged contemnor i.e. the appellant and therefore, there was no decision in the matter of the nature affecting the right of the party aggrieved.The Court has also taken into consideration the decision of the Court in the case of Purshotam Dass Goel vs. Justice B. S. Dhillon (supra) and after taking into consideration various decisions in regard to the appeal against order in contempt proceedings, in reply to the first issue has summarized thusI) An appeal under section 19 is maintainable only against an order or decision of the High Court passed in exercise of its jurisdiction to punish for contempt, that is, an order imposing punishment for contempt.II) Neither an order declining to initiate proceedings for contempt, nor an order initiating proceedings for contempt nor an order dropping the proceedings for contempt nor an order acquitting or exonerating the contemnor, is appealable under section 19 of the CC Act. In special circumstances, they may be open to challenge under Article 136 of the Constitution.III) In a proceeding for contempt, the High Court can decide whether any contempt of Court has been committed, and if so, what should be the punishment and matters incidental thereto. In such a proceeding, it is not appropriate to adjudicate or decide any issue relating to the merits of the dispute between the parties.IV) Any direction issued or decision made by the High Court on the merits of a dispute between the parties, will not be in the exercise of "Jurisdiction to punish contempt" and, therefore, not appealable under section 19 of the CC Act. The only exception is where such direction or decision is incidental to or inextricably connected with the order punishing for contempt, in which event the appeal under section 19 of the Act, can also encompass the incidental or inextricably connected directions.V) If the High Court, for whatsoever reason, decides an issue or makes any direction, relating to the merits of the dispute between the parties, in a contempt proceedings, the aggrieved person is not without remedy. Such an order is open to challenge in an intraCourt appeal (if the order was of a learned Single Judge and there is a provision for an intra Court appeal), or by seeking special leave to appeal under Article 136 of the Constitution of India (in other cases).