Facts
C.S. No. 51 of 2005 was instituted by the applicant-company and its directors seeking declaratory and other reliefs.
Source reference: p. 3An application for interim injunction was dismissed by the learned Single Judge on 30 August 2005.
Source reference: p. 3In O.S.A. No. 202 of 2005, the Division Bench, by order dated 5 September 2005, modified the order and directed, inter alia, that neither side should alienate the company’s movable or immovable assets without the Court’s permission; appointed the fifth appellant, R. Satish Raj, as Receiver to collect rents; regulated withdrawals from the company’s account; and required periodic filing of accounts.
Source reference: pp. 3–5The suit was stated to remain pending.
Source reference: p. 5The applicant subsequently sought to initiate contempt proceedings against R. Satish Raj and to implead respondents 2 to 5, namely Padma Rajendran, S. Sangeetha, A. Sreenivasulu Reddy and Konda Eshwar.
Source reference: p. 6It alleged that these persons, despite having knowledge of the order dated 5 September 2005, had participated in the transfer of company properties.
Source reference: p. 6Respondents 2 to 5, however, were not parties to O.S.A. No. 202 of 2005.
Source reference: p. 6Issues
Whether respondents 2 to 5, who were not parties to O.S.A. No. 202 of 2005 or to the order dated 5 September 2005, could be impleaded and proceeded against in contempt proceedings merely on the allegation that they had knowledge of the order and breached it?
Source reference: p. 6Whether the Sub-Application under Section 151 CPC seeking to amend the cause title and array respondents 2 to 5 as parties to the contempt proceedings was maintainable in the absence of specific pleadings establishing the legal basis for proceeding against them?
Source reference: p. 6Law Applied
The Court considered Section 151 of the Code of Civil Procedure, 1908, which preserves the Court’s inherent procedural powers, and Section 11 of the Contempt of Courts Act, 1971, concerning the High Court’s jurisdiction to punish for contempt.
Source reference: p. 6The governing principle applied was that contempt proceedings must be founded on a clear and specific allegation of wilful disobedience of an order, and a person who was not a party to the order cannot ordinarily be proceeded against without a specific legal and factual foundation demonstrating how the order was binding upon that person.
Source reference: p. 6Mere alleged knowledge of the order, without specific pleadings showing the basis of liability, was insufficient.
Source reference: p. 6Reasoning
The Division Bench examined the order dated 5 September 2005 and noted that it regulated the conduct of the parties to O.S.A. No. 202 of 2005, while permitting the parties to place relevant materials before the learned Single Judge in the pending suit.
Source reference: pp. 4–5Respondents 2 to 5 were admittedly not parties to the appeal or to the order alleged to have been violated.
Source reference: p. 6Although the applicant asserted that they had knowledge of the order and had participated in property transfers, the application contained no specific averments explaining how the order was legally enforceable against them or how their alleged acts constituted contempt.
Source reference: p. 6In the absence of such foundational pleadings, the Court held that the proposed impleadment and the contempt proceedings against respondents 2 to 5 could not be sustained.
Source reference: p. 6Holding
The Court held that the applicant had not established a sufficient basis for impleading respondents 2 to 5 in the contempt proceedings, particularly because they were not parties to O.S.A. No. 202 of 2005 and no specific averments demonstrated their liability for contempt.
Accordingly, Sub.A.(OS) No. 902 of 2026 was dismissed, and Cont. P. D.R. No. 49462 of 2026 was rejected.
Source reference: p. 7Acts & Sections Cited
2 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.
Code of Civil Procedure, 19081
Contempt of Courts Act, 19711
Original Court PDF
Custodial Services (India) Pvt. Ltd.vsR.Satish Raj
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