Section 12, 19 – Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (54 of 2002), Section 13(2)(4) -- Constitution of India, Article 226 -- SARFAESI proceedings -- Contempt of Court -- Undertaking before the High Court to make payment on specific dates – Non-honouring of commitment – Held, series of acts committed by the petitioners (i) in issuing post-dated cheques, which were dated beyond the date within which they had agreed to make payment; (ii) in allowing those cheques to be dishonoured; (iii) in not appearing before the Court on the first date of hearing with an excuse that was found to be false; (iv) in coming up with an explanation about their own debtors committing default; and (v) in getting exposed through the report of the SFIO, convinced the High Court to believe that the undertaking given by the petitioners was not based upon good faith but intended to hoodwink the Court – No fault with the High Court holding the petitioners guilty of contempt -- No dispute on facts that the mortgaged properties have now been sold and with extraordinary efforts, the Bank has also taken possession -- Petitioners have also spent 11 days in custody out of the total period of imprisonment of three months imposed by the High Court -- In such circumstances, it is sufficient punishment for the petitioners – Sentence reduced to already undergone.

(SC) Decided on: 09.08.2021