- (1.)THIS is an appeal filed by the appellants/contemners under Section 19 of the Contempt of Courts Act, 1971 against the judgment of the learned single Judge (T. R. Handa, J.) whereby the appellants have been punished with simple imprisonment for a period of two months and to pay a fine of Rs. 2000/- each, for committing the contempt of the Court.
(2.)THE relevant facts culminating in the contempt proceedings may be stated in brief. The appellants, besides others, were the Directors of the Company known as Hypine Carbons Limited, Nalagarh. A petition for winding up of the Company was filed in this Court on 31-3-1977. After a protracted trial, this Court on 16-5-1978 passed orders that the affairs of the aforesaid Company be compulsorily wound up and necessary further steps in this behalf be taken. Against this order of the winding up, the Company preferred an appeal being Coy. Appeal No. 1 of 1978. An application under Section 466 of the Act read with Rule 9 of the Company (Court) Rules, 1959, praying for the stay of the operation of the winding up order, was also filed. The then Acting Chief Justice (Justice T. U. Mehta) on 31-5-1978, passed an interim order staying the winding up proceedings. Notices were also sent to the respondents and the official liquidator. The Official Liquidator as also Shri Kuldip Parkash, at whose instance the winding up order was passed, filed reply to the stay application. The matter came up before the then Acting Chief Justice on 27-6-1978 who was pleased to pass the following order:
Present Shri S. S. Ahuja, Advocate, for the appellant, Shri K. D. Sud for the respondents, Shri K. Kumar Official Liquidator. O. M P. . No. 6 of 1978. Shri Sud who appears for the respondents opposes this application. During the course of the hearing Shri Ahuja who appears on behalf of M/s. R. G. Saraf, B. Himmat Singka and S. S. Fatehpuria shows his willingness to give an undertaking that his above named clients are willing to pay off the arrears of the wages of the labourers employed by the Company in the past or to arrive at some settlement with the labour union with regard to these arrears within one month from now. According to the report of the Official Liquidator the arrears of wages of labourers amounted to about rupees six lakhs about four to six months ago. Shri Ahuja also states on behalf of the above referred clients that in case the arrears of the labour as stated above, are not paid up or settlement is not arrived at within one month, his clients would be liable for contempt of court for breach of the undertaking unless the above referred period of one month is extended by the Court on proper grounds being shown. Shri Ahuja further states that his above referred clients are prepared to defend the various proceedings pending before the Authority under the Payment of Wages Act. Shri Ahuja also states that his above referred clients further undertake to complete the accounts of the company within one month and to hand over all the remaining account books to the Official Liquidator within that time. Shri Ahuja states that the erstwhile servants of the Company are already there to safeguard the property of the Company. Under the circumstances, in view of the suspension of the winding up order the official liquidator will not be responsible for safeguarding the property of the Company at Nalagarh till further orders. In view of the above undertaking, the matter be fixed on 2-81978. Dasti orders on ususal terms.
Sd/- C. J.
(3.)AS directed in the above order, the matter was taken up on 2-81978, when Shri S. S. Ahuja Advocate, appeared for the appellants. Till that time the appellants had not honoured their undertaking as contained in the order referred to above. The Court on 2-8-1978 passed an order in the following terms:
It is found that till this date there has been no settlement about the arrears of wages of Company's labour. Shri Ahuja states that the Directors are already in negotiations with the labour leaders about the same, the result of which will be forthcoming within ten days. Shri Sud who appears on behalf o the respondents informs Shri Ahuia about the date of 8-8-1978 which is fix-ed before the Judicial Magistrate 1st Class at Nalagarh for proceedings under the Payment of Wages Act.

;