M/S Kiran Electricals vs. Aijaz Ahmed Dar And Ors. (Power Development Corporation)

Held

The Court held that the order passed in the writ petition stands complied with in its letter and spirit. The reasoning was based on the compliance report filed by the respondents and the submission made by the learned counsel for the respondents at the Bar. The report indicated that an amount of Rs. 8,72,000/- was released, and subsequently, Rs. 8,37,120/- was disbursed to the petitioner after deducting GST. The Court found no fruitful purpose in keeping the contempt petition pending as the order was deemed to have been complied with. The ratio decidendi is that once the respondents demonstrate through a compliance report and submissions that the court's direction has been substantially fulfilled, even with deductions like GST, the contempt proceedings can be closed. The operative direction was to close the proceedings in the contempt petition and discharge the rule, if any.

Facts

The petitioner, M/s Kiran Electricals, filed a contempt petition (CCP(S) 209/2021) against the respondents for non-compliance with an order dated 02.02.2021 passed in WP(C) No. 44/2021. The original writ petition directed respondent No. 2 to clear the admitted liability towards the petitioner expeditiously, preferably within two months. As the order was not complied with, the contempt petition was filed. The respondents filed a compliance report on 02.09.2025, stating that an amount of Rs. 8,72,000/- was released by the Managing Director, Kashmir Power Distribution Corporation Ltd., to the Executive Engineer, Electric Division-Anantnag, for disbursement to the petitioner. Subsequently, Rs. 8,37,120/- was released to the petitioner after deducting GST.

Key Issues

1. Whether the respondents have complied with the order dated 02.02.2021 passed in WP(C) No. 44/2021, directing the clearance of admitted liability to the petitioner, in letter and spirit, as required by the court's direction. The petitioner argued that the respondents failed to comply with the court's order within the stipulated period, necessitating the filing of the contempt petition. The respondents, through their counsel, contended that the order has been complied with. They submitted a compliance report indicating the release of funds, with a deduction for GST, and stated that the payment made to the petitioner fulfills the court's directive. The respondents relied on their compliance report and the statement made by their counsel at the Bar to demonstrate adherence to the court's order.