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DLF cuts net debt by Rs 861 cr to Rs 19,508 cr

Press Trust of India  |  New Delhi  

October 31, 2013 Last Updated at 14:31 IST

Sale of non-core assets and internal accruals helped the company in bringing down the net debt level to below Rs 20,000 crore level

India's largest realty firm DLF has reduced net debt by Rs 861 crore in the second quarter of this fiscal at Rs 19,508 crore and the company is targeting to cut it further at Rs 17,500 crore level by March next year.

In an analyst presentation, DLF also said that it is negotiating with the multiple investors to sell luxury hotel chain Amanresorts and expects to close the transaction soon.

"Sequentially, the net debt has declined by Rs 861 crore from Rs 20,369 crore to Rs 19,508 crore. Given the pipeline of divestitures already executed but not yet closed, we maintain the FY14 guidance of net debt of Rs 17,500 crore," DLF said.

Sale of non-core assets and internal accruals helped the company in bringing down the net debt level to below Rs 20,000 crore level.

Realisation from divestment of non-core assets stood at Rs 870 crore during first six months of this fiscal and the company hopes to garner another Rs 1,000 crore in second half of this fiscal from this process.

On the status of divesting Amanresorts, DLF said it is in "negotiations with multiple bidders/investors on the Share Purchase Agreement. Substantial diligence has been completed. Targeting closure of the transaction in near future".

In December 2012, DLF announced the deal with Indonesian hotelier Adrian Zecha to sell Amanresorts for an estimated $300 million and expected the transaction to close by February 2013. Zecha, the founder of Amanresorts, missed the February deadline and exclusivity period was extended till June end.

In July, DLF walked out of a pact to exclusively negotiate sale of Amanresorts with Zecha and opened talks with 4 other potential buyers.

To reduce debt and focus on core realty business, DLF has been selling its non-core businesses and assets such as plots, hotels, wind mills and insurance venture.

It has raised about Rs 10,000 crore in last three years through divestment of its non-core assets.

Bad debt takes toll on OBC, IDBI Bank earnings

Photo: Pradeep Gaur/Mint

Remya nair : Anup Roy : Mint :30 Oct 2013

Oriental Bank of Commerce reported a 17% fall in profit to Rs.251 cr, and IDBI Bank’s profit dropped 60% to Rs.192 cr

Delhi/Mumbai: Two state-owned banks that declared their results on Wednesday saw a sharp decline in net profits—caused by rising bad debt and falling treasury income.

Delhi-based Oriental Bank of Commerce (OBC) reported a 17% fall in net profit to Rs.251.41 crore for the second quarter of 2013-14 as provisioning for bad debt and measures by the Reserve Bank of India (RBI) to curb the rupee’s volatility in July impacted income.

Net interest income rose 10.7% during the quarter, though non-interest income contracted 23% due to a sharp fall in treasury income.

OBC booked a treasury loss of Rs.16.86 crore for the three months ended September. It had posted a profit of Rs.51.92 crore in the corresponding year-ago period.

Net interest margin, a key measure of profitability, increased to 2.84% from 2.79%.

But asset quality continued to remain a worry, with gross non-performing assets increasing to 3.77% from 2.92% in the year-ago period. Net bad loans increased to 2.69% from 2.04%.

“The pressure on asset quality has continued. Banks were hoping that the economy has bottomed out. Till the economy does not revive, it will be a challenge for banks to rein in bad debts,” chairman and managing directorS.L. Bansal said.

The bank made a provision of Rs.332 crore for bad loans in the quarter as against Rs.301.02 crore in the year-ago period. Advances grew 9.2% and deposits 6.7%.

Bansal said the bank will not look to grow its advances book at the cost of asset quality. “We will look to consolidate during this period,” he said, adding that clearances of projects by the cabinet committee on investments is yet to translate into actual corporate credit demand.

The bank, which has received Rs.150 crore from the government as capital infusion, has no plans for additional fund-raising through a qualified institutional placement, Bansal said. It also has no plans for raising its lending or deposit rates at present.

Mumbai based IDBI Bank Ltd’s second-quarter profit dropped 60% toRs.192.27 crore from Rs.483.53 crore in the year-ago period, dragged down by heavy provisions to provide for bad debts and sharp fall in treasury income, the bank said in a statement. Total income increased to Rs.7,114.4 crore fromRs.6,880.01 crore a year ago. Provisions surged 78% to Rs.878.72 crore fromRs.494.58 crore in the year-ago period to take care of the bad debt, which stood at 4.98% of its advances against 3.45% a year earlier.

Shares of OBC fell 4.10% to Rs.153.25 on BSE on Wednesday and IDBI Bank’s scrip fell 3.94% to Rs.65.90, while the benchmark Sensex rose 0.5% to 21,033.97 points. “The managements of both the banks have indicated that the stress on the asset quality is likely to continue for at least two more quarters due to the economic situation. Till growth does not pick up, the situation is unlikely to improve on its own,” said Vaibhav Agrawal, an analyst with Angel Broking Ltd. “This is true of the banking sector as a whole as well,” he added.

Lawyer on a mission with guide to RTI

M T Saju, TNN | Oct 29, 2013, 06.02 AM IST

CHENNAI: Three years ago when S P Nedumaran published a book in Tamil on the Right to Information Act, he wanted to provide people with an idea about the subject. Though the act came into force in October 2005, many are still unaware of it. In 2011, he translated the book into English.

Titled 'Right to Information Act: A Weapon for the Common Indian', a revised edition with the 2012 amendments was released recently. With 30 models of applications, the three-part guide contains articles, success stories, and question and answers related to the act. "I have narrated everything related to RTIin simple language. There is no legal jargon. It helps the reader understand the act and how to use it," said Nedumaran, who has filed more than 400 RTI applications.

A practicing advocate, he travels across Tamil Nadu to conduct free workshops on RTI in villages. "I have conducted more than 40 workshops. In villages, people are not aware of the act. I teach them basics of how to prepare an RTI application with relevant questions," he said.

The book is divided into three parts. The first contains general articles on RTI and clears doubts about the act. The second deals with the methods of using the act to solve problems, and provides specimens of applications, while the third part gives the act.

It was while working as a legal advisor for a non-governmental organisation that Nedumaran realised the importance of the RTI Act. "Many who came to see me from villages were not aware of the act through which any citizen can get information from the government just for 10. I explored the possibilities of reaching those people. Still, there are a lot of people who are ignorant about the act. This should be changed," he said.

Intelligence is might, according to Nedumaran. "If one uses the act cleverly, even an ordinary person can become mighty. The RTI Act is our second Independence. I will be travelling to remote areas of Tamil Nadu to create awareness."

Banks can’t shame defaulters with pictures: Legal experts

Swati Deshpande, TNN Oct 27, 2013, 02.48AM IST

MUMBAI: In a rapidly rising trend that experts term disquieting, unauthorized, even defamatory, many public sector banks publish photographs of defaulters and guarantors of loans in the media as public notices. Defaulters of commercial loans and even personal and educational loans increasingly run the risk of finding their pictures in print. The name and shame operation that so far the public sector banks, consider necessary to recover their money, lacks the backing of any specific legal provision say lawyers, citing a recent judgment of the Kolkata high court.

The Kolkata HC had this May prohibited the State Bank of India in two cases from publishing pictures of loan defaulter or their guarantors. It had differed with the ''unfounded'' view taken in 2006 by two other high courts—in Mardras and Madhya Pradesh—and said the banks by publishing photographs without any legal sanction damaged the reputation of guarantors.

The practice of the banks however remains unabated. It had led to an outcry and protests a few months ago in South India, and has now led to experts to question the regulatory mechanism governing bank loans. Avocate Ashok Paranjpe of MDP & Partners said despite the Kolkata HC order and the fact that there is no provision in any law or guideline to allow banks to print by way of public notice the photographs of defaulters or guarantors, the SBI had a few months ago sent his client a seven-day notice that it would do just that if it failed to repay its long outstanding loan. He wrote to the bank to desist from taking such ''inappropriate, unlawful and arbitrary steps'' or to issue such ''misconceived threats'' and the bank desisted. It was not a willful default he said.

But others who do not respond to notices which the banks send, are not as lucky. The photographs of the defaulters where no other information apart from names, pictures and amount pending is displayed in print are "completely wrong'' said lawyers. Amit Desai, senior counsel in Mumbai said, "even where notices speak of 'symbolic possession' of properties taken by a bank, there is no need for photographs of defaulters since names and particulars of properties are given.''

"These types of advertisements do not seem to be in keeping with any type of circulars,'' said Desai. "What if there is a valid disputed claim? If there is a final decree from a tribunal or court too the photographs are not essential to be printed.'' He said, "This kind of a unilateral pre determination of defaulters' status appears to be wholly unjustified because it gives an impression that the person is not credit worthy and could amount to defamation, especially since the counter point of the person alleged to be defaulting has not been put across.''

The public sector banks which appear to have started and continue the trend however don't see anything wrong, illegal or arbitrary about what they do. One senior officer of a government bank, not willing to be quoted, said, "We take due precaution by sending the defaulter a prior notice before printing the names and pictures.'' He said, "We also included it in loan agreements now.'' He admitted that there '' is no specific legal provision that stipulates such publication of photographs with names'' but added, ''there is no provision that prohibits the banks either.'' While loan agreements which contain such clause of displaying defaulter's picture may put a defaulter in a bind, the question is about earlier loans which had no such clause.

In such a scenario, where thousands of crores are due to banks in outstanding loans, solicitor M V Kini who represents more than 50 banks said, "Banks have the discretion to act for the public good to ensure swift recovery of loans.'' He said main objective of the two enactments The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) Act of 2002 and the Debt Recovery Tribunal law was to secure and recover bad debts quickly.

Kini said, "Summary proceedings by DRT and quasi judicial proceedings by the Authorized Officer under the SARFAESI Act, are intended to recover the bad debts with certain amount of coercion and that is the intention of the legislature.'' He said, "Public notice with defaulter's picture thus cannot be faulted with,'' and said the Kolkata HC had erred in its findngs.

But the Kolkata judgment, which is said to be in appeal, has clearly held against publishing a photograph in public good. "Since publication of photograph of adefaulting borrower or guarantor has the potential of exposing him to irreparable loss, injury and prejudice, such publication cannot be resorted to in the absence of an express power or an agreed term in this behalf.

New norms for designating senior advocates in Madras High Court

R Sivaraman: The Hindu :28 Oct 2013

An advocate should have completed 15 years and should have argued successfully for landmark judgements

Aimed at providing greater transparency, the Madras High Court comes out with new norms on conferring the designation of senior advocate. According to the norms, an advocate should have completed 15 years of professional experience and landmark judgements should have been delivered in cases taken up by such a person.

Pointing out that the declared gross income from the profession should not be less than Rs. 7 lakh annually for the past three years, the norms spell out that an advocate should furnish at least fifteen judgments where he/she has contributed to the growth of law, in the preceding three years.

Welcoming the norms, R. Muthukumaraswamy, president of the Madras Bar Association (MBA) toldThe Hindu that “In those days, a senior advocate would recommend to Chief Justice the case of a junior advocate who has experience of 10 years for granting senior advocate’s designation and the matter would be placed before the full court for approval. Now, for first time, the Madras High Court has now made it public the norms.”

Explaining the procedure to be adopted while designation, the notification said “a Select Committee comprising of 10 judges of the High Court, preferably representing different facets of law, which would identify such of those advocates, who by their ability, conduct, standing at the bar or special knowledge or experience in law and distinction are eligible to be designated as Senior Advocates in terms of Section 16(2) of the Advocates Act, 1961”

“It appears that the gross income is too low. Today, it is nothing for a person who has fifteen years experience. The message clearly should be brought out that there shall not be application by candidate or recommendation letters by two seniors as practised now,” viewed senior advocate R. Krishnamoorthy.

The notification further said advocate, for being designated as senior advocate, on being invited by the High Court, should furnish the information in a prescribed format.

After verifying the credentials of the advocate, the Select Committee will forward the list to the Chief Justice. The selection list of names will thereafter be placed for approval before the High Court for designation as senior advocates.

Withdrawal

The notification made it clear that the High Court, by simple majority, will withdraw the designation of a senior advocate in case he/she committed professional misconduct or shown intemperate behaviour in court or has been found invariably negligent in professional duties.

Litigation-hit India Inc raises legal bar

Reeba Zachariah, TNN | Oct 27, 2013, 02.17AM IST

MUMBAI: With India Inc feeling the heat from a spate of litigations and investigations, many companies are on a mission to add muscle and brainpower to their legal teams. 

This, in turn, has made the prospect of going in-house — shorthand for corporate law departments - more attractive for lawyers.

Besides earmarking significantly larger budgets for their legal departments, companies are poaching some of the best brains from rivals and law firms. In-house lawyers are also closing the gap with the C-suite. A top industrialist told TOI, "You'll find that in more and more companies, the chief law officer or legal director now reports directly to the CEO, instead of being minus two or three" (which is corporate code for how many levels down the hierarchy an executive is).

This change in dynamics is in response to fear of litigations — one of the most significant business risks in Asia's third largest economy in decades — which has singed almost every leading business conglomerate.

In the old days, in-house legal departments dealt with relatively low-value disputes and transactions -- and as liaison between top management and big lawyers and law firms on critical cases. Now, CEOs want accomplished lawyers by their side at all times and not just to hire as-and-when or on retainer.

Sujjain Talwar, partner at Economic Laws Practice, said that legal issues were becoming far more important than earlier. "With penalties imposed by regulators and stakes involved in transactions high, companies can't sign documents without having lawyers on their side. Moreover any information that goes out from the company can be used against the company. This calls for greater responsibility and companies can't completely rely on external lawyers. Corporates are realizing this and increasingly prefer in-house counsel as their first contact point for advice," added Talwar.

Legal spend can also make a big difference to bottomlines. In 2012, corporate India had to shell out an estimated $1 billion (Rs 5,500-odd crore) in legal fees to fight scam-related cases, patent wars and disputes, upsetting chieftains who were counting on cutting expenses to make up for sluggish revenue growth. So, now they are hiring specialists -- from cyber law to environment law -- to ensure compliance.

The Tata Group today has an army of around 400 lawyers. At the $27-billion Essar Group, each of its eight businesses now have separate legal teams, unlike the earlier structure of a common legal team at the group level.

The general counsel, and not the senior partner of a law firm, has become the "first go-to" counselor for the CEO and every crucial written communication -- from bid documents to responses to a media query -- is being vetted by the in-house legal team.

The Tata Group general counsel, Bharat Vasani, advises the top management on issues as varied as mergers & acquisitions, intellectual property, international trade, regulatory and tax. Steel-to-shipping conglomerate Essar brought on board legal veteran Hemant Kumar as group general counsel. Drugmaker Cipla, with presence in over 170 countries, recently appointed its first global general counsel in Murali Neelankantan, a former senior partner at law firm Khaitan & Co.

Other companies that made key appointments in the recent past include Citibank, which had IndusLaw's partner Pramod Rao join the group as general counsel; and Vedanta Resources got Fox Mandal Little Ajit Yadav as president and global general counsel.

"In-house lawyers are in a strong position to understand the gravity of an issue and prioritize a matter better compared to external lawyers who handle multiple cases," said Ramesh Vaidyanathan, former general counsel of Mumbai International Airport and founder of Advaya Legal.

For multinationals operating out of India, a sharp legal team which can formulate sound anti-bribery policies and tackle tricky patent issues is even more important. India has been considered a high risk country on corruption after the US and UK uncovered bribery scandals by several multinationals in emerging markets. The US imposed over $1.7 billion as penalties on corporations in 2010 and most of the corruption cases involved non-US companies, according to a Deloitte report.

The role and scope of general counsel in India Inc has undergone a sea change in the past decade, with many occupying board seats. In MNCs, general counsel reports directly to the corporation's chief counsel at headquarters and not to the country head.

Globally, lawyers have gone on to lead well-known organizations (with mixed results) -- Charles 'Chuck' Prince at Citigroup, Lloyd Blankfein at Goldman Sachs, Brian Moynihan at Bank of America, Jeff Smisek at Continental Airlines and David Dillon at grocery chain Kroger are some examples.

In India, such examples are hard to come by; the exception being Aditya Ghosh at Indigo airlines.

 However, with the way the bar is being raised, we may see more lawyers in the corner office.

Contempt of court

Advocate M Mohan :26 Oct 2013

Contempt of court – 

when apology tendered is a bona fide one , 

court should not reject the same-

 All Dismissal of main cases should not absolve the liability of contemnor 

 but it can be considered as mitigating factor =  

The explanation to Section 12 of the Contempt of Courts Act,  1971

makes it clear that an apology tendered by a contemnor 

 should  not  be rejected merely on the ground 

that it is qualified or conditional so long it is made bona fide.  

  

In his reply, the appellant, after  offering  his  explanations,

 had tendered his unconditional and unqualified  apology  in  the  event  the

 explanations did not commend for acceptance  of  the  High  Court.  

  In  the decision rendered in 

 O.P.Sharma and  Ors.  Vs.  High  Court  of  Punjab  and Haryana[1],

this Court has already held that in view of the  explanation  to

 Section 12 of the Contempt  of  Courts  Act  an  apology  ought  not  to  be

 rejected only on the ground that it is qualified so long as it is made  bona

 fide.  In the present case there is nothing on record to  suggest  that  the

unqualified and unconditional apology  tendered  by  the  appellant  in  his

 reply before the High Court was actuated by reasons that are not bona fide.

 12.   It has also been noticed by us that the writ  petition  in  which  the

 interim  order  dated  18.08.2011  came  to  be  passed  has  been   finally

 terminated by an order dated 30.10.2012 dismissing  the  writ  petition  and

 also that the said order has attained finality  in  law.  

  This  is  another  relevant circumstance that  cannot  be  ignored  though  

 we  should  not  be understood to be saying that 

 all cases of dismissal of  the  writ  petition,

 by itself, would  absolve  a  contemnor  of  the  charge  

of  commission  of contempt in respect of an interim 

order passed while the writ  petition  had remained 

pending.

13.   In view of the aforesaid, we are unable to  sustain  the  order  dated

 23.07.2012 passed by the High Court.  We  accordingly  set  aside  the  said

 order dated 23.07.2012 and allow the appeal.

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.9476 OF 2013
(Arising Out of SLP (C) No.22500 of 2012)

T.C. GUPTA … APPELLANT (S)

 VERSUS

 BIMAL KUMAR DUTTA & ORS. … RESPONDENT(S)

J U D G M E N T

 
RANJAN GOGOI, J.

1. Leave granted.
2. By its order dated 23.07.2012 the High Court of Punjab and Haryana
has found the appellant guilty of commission of contempt in respect of an
order dated 18.08.2011 passed in Civil Misc. No.10994 of 2011 arising out
of Writ Petition (C) No.11684 of 2011. Consequently, the appellant was
summoned to appear before the High Court on 30.07.2012 for hearing before
pronouncement of order on the punishment to be imposed. Aggrieved, the
present appeal has been filed.

3. The facts that will be necessary to be noticed are as follows:
The respondent No.1 herein, as the writ petitioner, instituted a
Public Interest Litigation before the High Court (C.W.P. No.11684 of 2011)
raising a grievance with regard to the Final Development Plan 2025-AD for
Gurgaon-Manesar Urban Complex published vide Notification No. CCP
(NCR)/FDP(G)/2011/1386 dated 24.05.2011. Specifically, it was contended
that Sectors 63-A and Sector 67-A have been carved out in the Development
Plan contrary to the Zoning Regulations which are required to be followed.
The Final Development Plan, it may be noticed, is prepared under the Punjab
Scheduled Roads and Controlled Areas Restriction of Unregulated Development
Act, 1963 (hereinafter referred to as the Act of 1963).

4. Notice on the writ petition was issued by the High Court on
8.07.2011. Thereafter, on 11.08.2011 Civil Misc. Application No.10994 of
2011 was filed before the High Court for stay of the implementation of the
Final Development Plan “in view of contemplated grant of licence to the
colonizers/developers/societies.” On 18.08.2011 the following order was
passed by the High Court in C.M.No.10994 of 2011:

“Notice for the date fixed.
Mr. Anil Rathee, Addl. A.G., Haryana, present in Court, accepts
notice.
In the meanwhile, there will be status quo as to allotment as on
today.”

5. Though an application to vacate the aforesaid interim order was filed
by the Respondents in the writ petition the interim order was neither
vacated nor modified by the High Court and continued to remain in force.
While the matter was so situated the appellant who then serving as the
Director General, Town & Country Planning, Haryana, had granted a licence
dated 28.12.2011 for setting up of a Residential Plotted Colony on land
measuring 100.262 acres falling in Sector 63-A of the Gurgaon-Manesar.
The aforesaid grant of licence [under the Haryana Development and
Regulations of Urban Areas Act, 1975] (hereinafter referred to as ‘Haryana
Act of 1975’) by the appellant had led to the institution of the contempt
proceeding in question which was registered as C.O.C.P. No.120 of 2012.
The said action was initiated on the basis that the grant of the licence
dated 28.12.2011 by the appellant is in violation of the order of the Court
dated 18.08.2011.

6. The appellant had filed his response in the contempt proceeding
contending that no allotment was made by him or by any other authority so
as to constitute violation of the order of the High Court dated 18.08.2011.
The appellant, in his reply, further stated that in every residential
sector, a maximum of 20% of the net planned area was earmarked for group
housing and 3.5% for commercial purposes whereas for plotted residential
colonies there was no restriction except the requirement of a minimum area
of 100 acres. It was also stated that while the applications for group
housing and commercial activities was to be accorded priority on the basis
of date of application the same was not so in respect of applications for
plotted colonies which are to be considered and licences are to be granted
on fulfilment of the conditions prescribed. It was further stated by the
appellant that though not specifically prohibited by the order dated
18.08.2011, out of sheer deference, no licence has been granted or
contemplated for group housing colony/commercial colony as such licences
can be granted upto a maximum limit of the net planned areas. Licences for
plotted colonies, according to the appellant, stood on a different footing
inasmuch as for grant of such licences no ceiling limit exists. After
offering the aforesaid explanations, in the penultimate paragraph of the
reply the appellant had tendered his unqualified and unconditional apology
in the following terms:

‘It is humbly submitted that the answering deponent has
unfailing regard for this Hon’ble Court and all others courts of India
and cannot think of disobeying any order passed by the Hon’ble Law
Court. It is an article of faith for them to respect the orders
passed by the Hon’ble Courts. However, if this Hon’ble Court still
comes to the conclusion that the answering deponent has committed any
contempt of court, the deponent tender unqualified and unconditional
apology for the same.’

7. The High Court, on consideration of its interim order dated
18.08.2011 and response of the appellant referred to above, came to the
conclusion that its order dated 18.08.2011 has to be understood to have
imposed a comprehensive embargo on issuance of all kinds of licences and,
therefore, the grant of licence dated 28.12.2011, though for a plotted
housing colony, amounted to violation of the order dated 18.08.2011.
Accordingly, the High Court held the appellant guilty of commission of
contempt and passed orders for his personal appearance for hearing on the
quantum of punishment.

8. We have heard Mr.Goolam E. Vahanvati, learned Attorney General for
India, appearing for the appellant, Mr. Kamal Mohan Gupta, learned
counsel for the respondent No.2 and Mr. Soli J. Sorabjee, learned senior
counsel for the respondent No.3. None has appeared on behalf of the first
respondent i.e. writ contempt petitioner before the High Court.

9. It is the common ground of the learned counsels appearing for the
contesting parties that the interim order of the High Court dated
18.08.2011 had only restrained the concerned authority from making any
allotments. Admittedly, no allotment(s) were made. There was no specific
order prohibiting the implementation of the development plan, though such a
relief was prayed for before the High Court. It is urged that the
appellant, in his reply, had set out the manner in which he had understood
the order dated 18.08.2011, namely, that the said order had not placed any
kind of prohibition on grant of licences under the Haryana Act of 1975.
Yet, out of deference to the order of High Court, no licence either for
group housing or commercial activities in either Sector 63-A or 67-A was
issued or granted and the entire of the earmarked land in both these
sectors for Group Housing and Commercial purposes was kept vacant. Only in
respect of plotted colonies for which there was no ceiling limit the
licence dated 28.12.2011 was issued. It is further urged that in the light
of the specific order passed by the High Court it cannot be said that the
appellant or any other person or authority had violated the same. It is
also pointed out by the learned counsels that, in any view of the matter,
the appellant had tendered his unqualified and unconditional apology which,
in fitness of things, ought to have been accepted by the High Court.
Lastly, the learned Attorney General, by drawing the Court’s attention to
the counter affidavit filed before this Court by the second respondent, has
submitted that the writ petition itself had been dismissed by the High
Court on 30.10.2012 holding that the validity of the development plan
published by the Government in accordance with the relevant provisions of
the Statute is not open to challenge by means of a Public Interest
Litigation. It is also pointed out that the aforesaid order of the High
Court has attained finality in law.

10. The terms of the order of the High Court dated 18.08.2011; the
averments/statements made in the contempt petition and the reply thereto on
behalf of the appellant as well as the subsequent facts placed before us
have received our due and anxious consideration. The interim order of the
High Court had directed status quo to be maintained in respect of
allotments. Admittedly, no allotments had been made by the appellant or
any other authority. A contempt action being in the nature of quasi
criminal proceeding the degree of satisfaction that must be reached by the
Court to hold a person guilty of commission of contempt would be akin to
what is required to prove a criminal charge, namely, proof beyond
reasonable doubt. The order of the Court in respect of which violation is
alleged must, therefore, be clear, unambiguous and unequivocal and defiance
thereof must be apparent on the very face of the action with which a
contemnor is charged. An interpretation of the terms of Court’s order in
respect of which disobedience is alleged would not be appropriate while
dealing with a charge of contempt. Such a charge cannot be brought home by
unravelling the true meaning of the Court’s order by a subsequent order
when there is an apparent ambiguity, lack of clarity or dichotomy in the
initial order. In a situation like the present where the High Court had
directed maintenance of status quo as to allotment when the interim prayer
was to stay the implementation of the final development plan “in view of
contemplated grant of licence to the colonizers/developers/Societies” it
was not open for the High Court to hold the contemnor guilty of commission
of contempt by understanding the order dated 18.08.2011 to mean status quo
or a restraint in respect of grant of licences under the Haryana Act of
1975.

11. In an earlier part of the present order, we have noticed the
unqualified and unconditional apology tendered by the appellant before the
High Court in the event his explanations were to be found unacceptable.
The explanation to Section 12 of the Contempt of Courts Act, 1971, makes
it clear that an apology tendered by a contemnor should not be rejected
merely on the ground that it is qualified or conditional so long it is made
bona fide. In his reply, the appellant, after offering his explanations,
had tendered his unconditional and unqualified apology in the event the
explanations did not commend for acceptance of the High Court. In the
decision rendered in O.P.Sharma and Ors. Vs. High Court of Punjab and
Haryana[1], this Court has already held that in view of the explanation to
Section 12 of the Contempt of Courts Act an apology ought not to be
rejected only on the ground that it is qualified so long as it is made bona
fide. In the present case there is nothing on record to suggest that the
unqualified and unconditional apology tendered by the appellant in his
reply before the High Court was actuated by reasons that are not bona fide.

12. It has also been noticed by us that the writ petition in which the
interim order dated 18.08.2011 came to be passed has been finally
terminated by an order dated 30.10.2012 dismissing the writ petition and
also that the said order has attained finality in law. This is another
relevant circumstance that cannot be ignored though we should not be
understood to be saying that all cases of dismissal of the writ petition,
by itself, would absolve a contemnor of the charge of commission of
contempt in respect of an interim order passed while the writ petition had
remained pending.

13. In view of the aforesaid, we are unable to sustain the order dated
23.07.2012 passed by the High Court. We accordingly set aside the said
order dated 23.07.2012 and allow the appeal.

…………………………CJI.
[P. SATHASIVAM]

 
……………………………J.
[RANJAN GOGOI]
New Delhi,
October 25, 2013.
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[1] (2011) 6 SCC 86 [para 34 and 35]