SC: Wilful Breach Of Undertaking Given To Court Is Contempt

Factual Background

• The case was of Suman Chadha V. Central Bank of India.
• The husband and wife were sentenced to simple imprisonment of 3 months with fine of Rs. 2000 on charges of contempt of court due to breach of undertaking for obtaining stay order.
• They contended that an undertaking on which conditional stay order was granted cannot be treated as disobedience to attract contempt proceedings.

Pleas of the Petitioner

• The failure to honour the undertaking would not amount to obstruction to justice.
• When the order indicates towards the consequences of failure of complying with the condition, invoking contempt proceedings would not be appropriate.
• If the party in default has an understanding that the order has consequences of failure in the order itself, then he cannot be held guilty.

Court’s Orders

• The action of wilfully breaching an undertaking submitted before the Court would amount to Contempt of Court under Section 2 (b) of the Contempt of Courts Act.
• It should be considered in the context of its making and the benefits given to the party and the injury that the other party suffered.
• The Court also expressed their doubts that there is no distinction between wilful violation of a consent decree’s terms and wilful violation of an adjudication decree’s provisions.
• The Court upheld the decision of the High Court of holding the petitioner guilty but reduced the imprisonment to imprisonment already undergone.

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