NCLAT Rejects Contempt Plea citing Two-Year Delay, Liquidation Proceedings Remain Ongoing [Read Order]

In a recent ruling The National Company Law Appellate Tribunal (NCLAT), New Delhi, has dismissed a contempt plea citing the two-year gap since the alleged newspaper publications and noting that liquidation proceedings remain ongoing.

The appeal arises from the NCLTs order dated september 18,2025, which had dismissed contempt application. The appellant appointed as the liquidator in the insolvency proceedings of Aaj Ka Anand Papers Limited, filed Contempt Application under Section 425 of the Companies Act, 2013.

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The appellant, Jitender Kumar Jain, argued that his petition was not limited to civil contempt but also covered criminal contempt under the contempt of courts act, 1971.He sought maximum penalties under Section 235A of the Insolvency and Bankruptcy Code (IBC) and reimbursement of legal costs.

The appellants allegations centered on a series of newspaper articles published in August 2023 against him in his capacity as liquidator. For these publications, he has already instituted Civil Suit before the Delhi High Court, which remains pending.

The tribunal noted that although the adjudicating authority possessed full powers under Section 425 of the Companies Act, 2013 read with the Contempt of Courts Act, 1971, this was not a case warranting further contempt proceedings.

The tribunal said that :

“the present case, we are of the view that even though Adjudicating Authority could have exercised all powers vested under the Contempt of Courts Act, 1971 while exercising jurisdiction under Section 425 of the Companies Act, 2013 but present was not a case where any further proceedings were required with respect to publication made in the newspaper in August 2023.”

The bench, Justice Ashok Bhushan(chairperson), Barun Mitra(Technical member) noted that the publications in question were more than two years old, and the liquidation process is still ongoing and clarified that any observations made in the order shall have no effect on the pending proceeding initiated by the Appellant in the Delhi High Court.

Accordingly the appellate tribunal closed theproceedings.

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