The Supreme Court (SC) of India has recently begun Contempt of Court Proceedings against two members of the National Company Law Appellal Tribunal (NCLAT). This action taken by the SC came as a result of the issuance of show cause notices to the NCLAT members, who pronounced a judgment in the Finolex Cables case despite explicit instructions from the SC to maintain status quo.
A Show Cause Notice is a formal protocol used by authoritative bodies such as courts or government agencies. It asks the recipient to provide a sound explanation or justification for their actions, decisions or behavior. A Show Cause Notice serves the purpose of affording the recipient the opportunity to respond or clarify specific concerns or allegations of violations.
The Finolex Cables Case: A Breach of Directive
The SC had previously directed the scrutinizer to reveal the result of the Annual General Meeting of Finolex Cables. In addition, it asked the NCLAT to pronounce its judgment after the result was disclosed. Contrary to these directives, the NCLAT announced the judgment without acknowledging the SC’s instruction.
The Chief Justice of India voiced his concerns about the functioning of the National Company Law Tribunal (NCLT) and the NCLAT. The SC expressed its dissatisfaction with the way NCLAT managed the case, stating that the tribunal should have adhered to SC’s orders.
Understanding Contempt of Court
Contempt of court is a mechanism designed to protect judicial institutions from unwarranted criticism and motivated attacks. It also serves to punish those who undermine the court’s authority. It was established as one of the constraints on freedom of speech and expression under Article 19 (2) of the Constitution of India.
The Supreme Court has been empowered to punish contempt of itself by Article 129 of the Constitution, with High Courts given corresponding powers under Article 215. The Contempt of Courts Act, 1971, gives these concepts statutory backing.
Contempt of Court can be classified into two types: Civil Contempt refers to wilful defiance of any court’s judgment or orders, while Criminal Contempt includes the publication of any material or action that scandalizes or lowers the authority of any court, among other things.
Potential Punishments for Contempt
The offender can face imprisonment extending up to six months, a fine of Rs 2,000, or both, according to the Contempt of Court Act of 1971. In 2006, this was amended to include truth and good faith as defenses.
Criticism of Contempt of Court Proceedings
Contempt of Court Proceedings has been criticized for its roots in British colonialism in India as similar laws have been abolished in the United Kingdom. There have been calls to limit contempt to only wilful disobedience of court’s directions or judgments.
Moreover, concerns have been raised that it can lead to judicial overreach and further delay in justice administration due to the high number of contempt cases pending in various courts.
Need for Regulations and Guidelines
Freedom of speech should be subject to minimal restrictions. The law of Contempt of Court should impose only those restrictions that are essential to maintain the legitimacy of judicial institutions. Therefore, it is imperative to formulate rules and guidelines defining the process superior courts must follow when taking criminal contempt action, bearing in mind principles of natural justice and fairness.
