Decided on December 20,2007

Divine Entertainment Ltd Respondents


SHIV NARAYAN DHINGRA,J. - (1.) THIS contempt petition under section 12 of Contempt of Court Act has been made by the decree-holder (for short 'DH') against Judgment-debtor (for short 'JD') because of undertaking given by the JD in the Court.
(2.) JD had suffered an award for a sum of Rs. 27,30,792.46 with interest thereon @ 15% with effect from 20.1.2003. Since this amount was not paid by JD, in the execution petition of DH, this Court issued an order of attachment of payment which JD was to receive from Star TV Network Pvt. Ltd., Andheri East, Kurla Road, Mumbai. After this attachment order JD approached DH for compromise and matter was settled between the parties for a sum of Rs. 21 lakhs. DH was paid Rs. 3 lakhs by JD and remaining amount of Rs. 18 lakhs was agreed to be paid by JD in the following manner:- i) Rs. 40,000/- on the date of agreement; ii) Rs. 50,000/- per month for 34 months w.e.f. 27.2.2006 and thereafter on 27th day of each succeeding month; and iii) On 35th month the balance of Rs. 60,000/- was to be paid. An application under Order 23 Rule 3 CPC containing the terms of settlement between the parties, was filed before the Court in July 2006. Parties appeared before the Court on 18.8.2006. One cheque of Rs. 40,000/-earlier issued by the JD in terms of compromise had dishonoured. On 18.8.2006 a demand draft of Rs. 40,000/- was handed over to DH. JD stated in the Court that the next cheque of Rs. 50,000/- for July instalment be presented by the DH and the same shall be honoured. Mr.Ashim Khetrapal, MD of JD was called in the court on 28.8.2006 and he made following statement:- "I say that the compromise terms as well as the presentation of the cheques furnished by me to the Decree Holder was done by me in advance as this was agreed to come into effect after the release of payments to me from Star TV. This is the reason for the dishonour of the cheques. I under take to the Hon'ble Court that all the post-dated cheques shall be honoured on presentation. I am aware that if any of the post-dated cheques are dishonoured I shall be liable for imprisonment under the Contempt of Courts Act in addition to any other remedy that may be available to the decree holder."
(3.) AFTER the undertaking was given by JD, this Court recalled the attachment orders, cautioned the JD that in case of breach of undertaking he would be liable for incarceration apart from any order that may passed. Liberty was given to the DH to approach the Court in the event of dishonour of the cheque. Another post dated cheque of the JD got dishonoured and DH had approached this Court for contempt and revival of the decretal proceedings.;

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