M/S Classic Shristi J V (Joint Venture) (Lead Member Classis Coal Construction PVT) vs. The General Manager Central Coal Fields Limited

Facts

This contempt application was filed by M/s Classic Shristi J.V. against Mr. Chandra Bhushan Sahai, General Manager of Central Coalfields Limited (CCL), alleging wilful disobedience of a previous High Court order dated December 21, 2022, passed in W.P.(C) No. 5035/2022. CCL, through its counsel, stated in a show cause affidavit that the petitioner was entitled to Rs. 10,79,234.63 (without GST) after processing the final bill. However, payment was contingent upon the petitioner obtaining approval for revised estimates and final time extension by December 31, 2023, producing royalty clearance, and submitting a CA certificate. The petitioner claimed to have submitted all required documents, except royalty and other statutory clearances, which they agreed to submit within two weeks.

Held

The Court noted the statements made by both parties. The petitioner agreed to submit the required royalty clearance and other statutory documents within two weeks. The Court directed the petitioner to submit these documents within the stipulated timeframe. Upon submission, the competent authority of CCL was ordered to release the final bill amount of Rs. 10,79,234.63 (without GST) in favour of the petitioner within two weeks thereafter. The Court cautioned that if CCL failed to make the payment, the petitioner would be at liberty to file a fresh contempt application. The contempt proceedings against CCL were dropped, and the application was disposed of with these directions.

Key Issues

1. Whether the opposite party-CCL has wilfully disobeyed the order dated 21.12.2022 passed in W.P.(C) No. 5035/2022, thereby committing contempt of court? The petitioner argued that CCL had failed to comply with the previous court order directing payment. The opposite party-CCL, through its counsel, contended that while the final bill was processed and an amount determined, payment was conditional upon the petitioner fulfilling certain contractual obligations, specifically providing royalty clearance and other statutory documents, and obtaining approval for revised estimates and time extension. They submitted that the petitioner had not yet fully complied with these prerequisites.