Unless a Court is satisfied beyond a reasonable doubt, the jurisdiction under the Contempt of Courts Act, 1971, ought not to be exercised – Mr. Rajan Chadha and Anr. Vs. Mr. Sanjay Arora and Anr. – Delhi High Court
Hon’ble Delhi High Court held that:
(i) To punish a contemnor, the disobedience should be willful. Element of willingness is an indispensable requirement to hold a party guilty of contempt. It has been held time and again that contempt jurisdiction is a powerful weapon in the hands of the Courts, and the said proceedings being quasi-criminal in nature, the standard of proof required in these proceedings, is beyond all reasonable doubt.
(ii) Since the company is undergoing CIRP, all the assets and management of the company are with the Resolution Professional. Further, the liability of loan installments, in the form of claim submitted by the South Indian Bank, is also with the Resolution Professional. Thus, the respondent no. 1 has no control over the assets, management and liabilities of the Company. Thus, it is manifest that the R1 has been unable to pay the EMIs to the bank due to his financial inability and constraints, due to circumstances, as brought forth before this Court.
