Supreme Court Sets Aside High Court Orders Determining Rights of Non-Party in Contempt Proceedings.


[ Court Doc ]   Civil Appeals >> Civil & Consumer Law   |   Custom Duty >> Tax Laws  

The Supreme Court of India in PIL India Private Limited Vs Vinod Kumar Jain & Ors., has allowed an appeal against orders passed by the Calcutta High Court in a contempt proceeding initiated by the first respondent against officers of the Customs Department. The apex court set aside portions of the High Court's orders dated February 17, 2022, and March 4, 2022, and the entirety of the order dated April 18, 2022.

The appellant, a shipping line, was aggrieved by observations and directions issued by the High Court in the contempt proceedings, despite not being a party to the original dispute between the first respondent and the Customs Department. The Supreme Court noted that the High Court, while considering the contempt petition against the Customs officers for non-compliance with an earlier order, had erroneously determined the rights of the appellant vis-a-vis the first respondent.


 

 

The appellant's counsel argued that adjudicating the rights between the appellant and the first respondent within the contempt jurisdiction, especially without impleading the appellant as a party in the original proceedings, was beyond the scope of contempt law.

The Supreme Court concurred, stating that the impleadment of the appellant in the contempt petition was not legally sound, and the determination of the appellant's rights against the first respondent in a contempt proceeding against Customs officers was unwarranted. Consequently, the court set aside the specific portions of the orders from February 17 and March 4, 2022, concerning detention certificates and potential actions against CFS/Shipping Lines, and the entire order dated April 18, 2022, which had adjudicated the rights between the appellant and the first respondent.

The Supreme Court clarified that its order does not prevent the appellant and the first respondent from pursuing their respective rights through appropriate legal avenues. The appeal was allowed, and the impugned High Court orders were set aside to the extent indicated.


  Contempt of Courts Act, 1971