The Supreme Court of India has ruled that misguiding the court to obtain an order with no genuine intention to comply amounts to contempt of court. The bench, comprising Justices Abhay S. Oka and A.G. Masih, found Shaji Augustine guilty of civil contempt for deliberately disobeying its previous orders.
“A party, misguiding the Court to pass an order which was never intended to be complied with, would constitute an act of overawing the due process of law and, thus, commit contempt of Court,”
— Supreme Court
The case stemmed from a licensing agreement entered in 2014 between M/s Chithra Woods Manors Welfare Association and Shaji Augustine regarding a resort property in Munnar, Kerala. The agreement required a monthly payment of ₹12 lakhs. However, Shaji defaulted shortly after, leading to arbitration and later a mediated settlement in 2017.
Despite agreeing to revised payments under the 2017 Settlement Agreement, Shaji failed to honor his commitments. In 2022, he undertook before the Supreme Court to pay ₹172 lakhs in arrears across six monthly installments, starting December 2022. However, no payments were made.
“From the very beginning till the very end, the Respondent-Contemnor has been taking the Court for a ride,”
— Supreme Court observed
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The court also rejected Shaji’s plea of financial hardship, stating that if he had no means, he should have approached the Court to modify or withdraw the order rather than ignoring it. It found his conduct as a misuse of judicial process aimed at continuing the enjoyment of the property without fulfilling obligations.
“The misuse of the process of Court with an intent to tarnish the image of judiciary, threatening the integrity and the efficiency of the judicial system cannot be allowed to be overlooked,”
— Court emphasized
The court ruled that mere imposition of a fine would not be sufficient. It sentenced Shaji Augustine to three months of simple imprisonment and imposed a ₹20,000 fine. If the fine remains unpaid, he will face an additional month in jail. The Court, however, granted him 30 days to comply with its previous order to avoid the sentence.
Case Title: M/S CHITHRA WOODS MANORS WELFARE ASSOCIATION VERSUS SHAJI AUGUSTINE
