Mumbai: 2 Orbit builders get 6 months for civil contempt of court

MUMBAI: The Bombay high court on Tuesday sentenced developers Pujit and Ravi Kiran Aggarwal of Orbit Corporation to six months’ simple imprisonment for civil contempt of court, for failing to comply with a 2015 undertaking to pay Rs 118 crore to another builder.
The court, though, immediately suspended the sentence on a personal request made by Pujit Aggarwal, who was present, to afford him a chance to come up with a proposal to make good the payment.The next date in court is April 4.
The court was hearing two contempt petitions filed in 2016 and 2017 by Vardhman Developers against Orbit Corp and its directors, Pujit and others.
Vardhman’s case, argued by senior counsel Dinyar Madon and S U Kamdar with Karl Tamboly, was that a consent term order required Orbit Corp to pay Rs 118 crore in three instalments to Vardhman. This repayment was secured by 10 post-dated cheques, which were not honoured, said Vardhman’s counsel.
“Undertakings to a court are the most solemn commitments. They will be honoured, in full measure,’’ said Justice Gautam Patel.
The law provides for a maximum six months’ simple imprisonment for even civil contempt—willful disobedience of court orders, including consent orders or undertakings.
Vardhman had moved court against Orbit over a property dispute, which ended in June 2015 with the consent term order. On March 23, Justice Patel observed that Pujit and Ravi Kiran had earlier agreed that the decree disposing Vardhman’s suit would bind them.
The decree is of Rs 118 crore plus 24% interest per annum.
Madon said the total amount due is almost Rs 180 crore. “Pujit Aggarwal and Ravikiran Aggarwal are thus judgment debtors. They signed the consent terms. They gave undertakings to my court,’’ said Justice Patel.
Last week, the Judge had said, “There will be a complete freeze on all operations of all bank accounts held by these four individuals and by the company, Orbit Corp, until further orders.” Advocate Yadunath Chaudhari for Aggarwal produced three statements on March 23, which Justice Patel observed were “not even remotely in compliance’’ with his order. The court found that the Aggarwals had made some disclosures of bank accounts without any account numbers.
“The Aggarwals of Orbit Corporation Ltd—Pujit Aggarwal, Gunjan Aggarwal, Ravi Kiran Aggarwal and Dinesh Aggarwal—seem to believe they can make all manner of incorrect and misleading statements to the court and continually get away with it.’’ Justice Patel had said. “ Every one of the members of this family needs to be rapidly disabused of this notion. They will comply with the court’s directions...”
“Orbit Corp, once touted as the brightest and most stellar object in the city’s construction firmament, is now evidently a commercial black hole from which absolutely nothing can be retrieved, and nothing escapes. It is undoubtedly a judgment debtor. Nobody denies that, not even the Family Aggarwal,’’ the Judge had said.