Delhi High Court

Failure to deposit admitted amounts within court-mandated timelines constitutes wilful disobedience and actionable contempt.

Super Cassettes Industries Private Limited v. Reliance Entertainment Studios Private Limited CS(COMM) 840/2023

Delhi High CourtJUDGMENT: no citation3 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Plaintiff (SCIPL/T-Series) filed a suit for recovery of approximately ₹60.23 crores under a Loan Agreement dated 19.05.2021.

Source reference: p.2

Under the agreement and subsequent amendments, the Plaintiff held a lien on revenues from specific films produced by the Defendant.

Source reference: p.12

On 23.11.2023, the Court directed the Defendant to disclose third-party receivables.

Source reference: p.12

The Defendant filed an affidavit on 07.12.2023, admitting ₹7.42 crores was receivable from Zee Entertainment and ₹2.32 crores was due from films ‘IB-71’ and ‘Bholaa’.

Source reference: p.13

On 19.12.2023, the Court recorded an undertaking by the Defendant to deposit these "admitted amounts" within two weeks and restrained the release of any films without leave.

Source reference: p.14

The Plaintiff filed I.A. 815/2024 alleging contempt for: (i) failure to deposit the ₹7.42 crores and ₹2.32 crores within the deadline; and (ii) releasing the web-series ‘Indian Police Force’ and film ‘Crakk’ without Court leave.

Source reference: p.3, 4
02

Issues

Whether the Defendant's failure to deposit the admitted sums of ₹7.42 crores and ₹2.32 crores within the two-week timeline stipulated in the order dated 19.12.2023 constitutes "wilful disobedience" under the Contempt of Courts Act, 1971.

Source reference: p.16/para.19-21

Whether the release of ‘Indian Police Force’ and ‘Crakk’ violated the restraint orders dated 23.11.2023 and 19.12.2023.

Source reference: p.20/para.28
03

Law Applied

The Court primarily applied Order XXXIX Rule 2A of the Code of Civil Procedure, 1908, regarding the consequences of disobedience of an injunction.

Source reference: p.1

Sections 11 and 12 of the Contempt of Courts Act, 1971, and Article 215 of the Constitution of India, which empower the High Court to punish for contempt.

Source reference: p.2

The court relied on the principle that an undertaking given to the Court has the same force as an injunction, and "wilful disobedience" involves a deliberate disregard of a clear and unequivocal judicial direction.

Source reference: p.19, 23
04

Reasoning

The Court found the direction in the order dated 19.12.2023 to be "unequivocal and clear".

Source reference: p.19

Regarding the ₹2.32 crores, the Defendant failed to pay within two weeks and raised "unsustainable defences" like set-offs, eventually paying only after multiple subsequent court warnings on 08.05.2025.

Source reference: p.15-16

Regarding the ₹7.42 crores, the Court rejected the Defendant’s argument that its liability was contingent on Zee Entertainment making the payment; the Court noted that the Defendant had accepted the two-week deposit deadline without qualification.

Source reference: para. 25

A shortfall of ₹3.13 crores remains, and the tranches received were delayed.

Source reference: p.17-19

Regarding the films, the Court noted a "doubt about the veracity" of the Defendant's claim that its contract for ‘Crakk’ was terminated just after the restraint order, and found its claim of being a mere "line producer" for ‘Indian Police Force’ prima facie negated by its "Producer" credit in the series.

Source reference: p.21-22

However, these factual disputes were reserved for trial.

Source reference: p.21-22
05

Holding

The Court held Respondent Nos. 1, 2, and 3 (Director, Additional Director, and Authorized Representative) guilty of wilful disobedience of the order dated 19.12.2023.

The Court sentenced them to simple imprisonment for four weeks.

Source reference: p.24

However, the sentence was suspended for two weeks to allow them to "purge the contempt" by: (i) depositing the balance ₹3.13 crores with 12.5% interest; and (ii) paying 12.5% interest on the delayed payments of ₹4.29 crores and ₹2.32 crores.

Source reference: p.24-25

If the payments are made within two weeks, the sentence shall be remitted; otherwise, they must surrender to undergo the term.

Source reference: p.25

Respondents were directed to furnish bail bonds of ₹1 lakh each before the Joint Registrar on 16.03.2026.

Source reference: p.25
Delhi High Court

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Super Cassettes Industries Private Limited v. Reliance Entertainment Studios Private Limited CS(COMM) 840/2023

Delhi High Court · no citation

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