NCLT convicts Port Authority Officers for Contempt of Court on disobeying directions by Adjudicating Authority [Read Order]

The Hyderabad Bench of the National Company Law Tribunal ( NCLT ) convicted the Port Authority Officers for contempt of court on disobeying directions by the Adjudicating Authority.

Aggrieved with violation of the order, Mr.Sanjay Gupta, Liquidator for the M/s.Lanco Babandh Power Limited ( Petitioner ) filed the present Contempt Petition under Section 425 of the Companies Act, read with Sections 10 and 12 of the Contempt of Courts Act, and Rule 11 of the National Company Law Tribunal Rules, 2016 for holding the Respondents guilty for wilful and deliberate violation of the impugned order and further punishing them appropriately.

The counsel for the respondent submitted that the Respondent No.1 is empowered to issue/grant ‘Out of Charge’ ( OOC ) on the imported cargo/goods in cases where Bill of Entry has been filed by the importer and provisionally assessed by the Customs Officer. Subsequently, order of movement of such imported goods/items is to be issued by the custodian of the property i.e., Port Authority who is to issue gate pass for the transportation of the imported goods.

A Two-Member Bench comprising Sanjay Puri, Technical Member and Rajeev Bhardwaj, Judicial Member observed that “We think that the Respondent Nos. 2 and 3 have intended to undermine the administration of justice and their intentional acts cannot be disregarded. Administration of justice would be defeated if the order of any Authority is disregarded with impunity. There can be no laxity in such a situation because otherwise the orders of this Authority would become the subject of mockery.”

The Tribunal quoted the observations of the Supreme Court in Commissioner, Karnataka Housing Board versus C. Muddaiah that once a direction is issued by a competent Court, it has to be obeyed and implemented without any reservation. If an order passed by a Court of Law is not complied with or is ignored, there will be an end of Rule of Law. If a party against whom such order is made has grievance, the only remedy available to him is to challenge the order by taking appropriate proceedings known to law.

“It is unbecoming on the part of the Government Authority not to respond to the lawful directions issued by this Authority. They have neither complied with the directions of this Authority, nor preferred any appeal. They sat on the matter despite knowing fully well that lawful directions have been issued by the competent authority and on account of the gross disobedience of the Paradeep Port Authority, this matter is being” the Tribunal noted.

To Read the full text of the Order CLICK HERE

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