Disregarding a Court's Order May Seem Bold, But the Shadows of Its Consequences Are Long and Cold: Supreme Court Sentences Shaji Augustine for Civil Contempt

"Pure Stream of Justice Cannot Be Allowed to Be Polluted" - Supreme Court of India in M/S Chithra Woods Manors Welfare Association v. Shaji Augustine, Contempt Petition (Civil) No. 712 of 2023, delivered a landmark ruling, punishing Shaji Augustine for deliberate, wilful disobedience of its prior orders. Holding him guilty of civil contempt, the Court imposed three months' simple imprisonment and a fine of ₹20,000, giving him a final opportunity to purge the contempt by clearing the arrears within thirty days.

This judgment sets a decisive precedent against litigants who misuse judicial proceedings to gain undue advantage, thereby threatening the dignity and authority of the judicial system.

The dispute originated when M/S Chithra Woods Manors Welfare Association, owners of a furnished studio apartment complex in Munnar, Kerala, entered into an agreement with Shaji Augustine in January 2014. Augustine was allowed use of the property for ten years at a license fee of ₹12 lakh per month.

However, within a short period, Augustine defaulted on payments. Despite a mediated Settlement Agreement in 2017, which reduced the license fee to ₹8 lakh per month and total arrears to ₹75 lakh, Augustine continued to default. Execution proceedings were initiated, and after losing appeals at various stages, Augustine sought relief before the Supreme Court.

The Supreme Court, on November 7, 2022, ordered Augustine to pay ₹12 lakh per month from September 20, 2021, with arrears to be cleared in six instalments starting December 2022. Despite seeking account details via email and assurances of payment, Augustine made no payment, leading to the contempt proceedings.

The principal issue before the Court was whether Shaji Augustine’s failure to pay the ordered amount despite repeated directions constituted wilful disobedience, and whether his plea of financial inability could shield him from contempt consequences.

The Court noted that the Respondent-Contemnor's conduct reflected "deliberate and intentional non-compliance" with the directions of the Court. It observed that Augustine "misused the process of the Court" by retaining possession of the property without payment, despite extracting interim orders in his favour.

The Court remarked emphatically, citing Hira Lal Dixit v. State of Uttar Pradesh: "It is a fit case where the power of the Court should be exercised and that it is necessary to impose the punishment of imprisonment. People must know that they cannot with impunity hinder or obstruct or attempt to hinder or obstruct the due course of administration of justice."

The Bench further highlighted that had Augustine genuinely faced financial distress, he would have approached the Court for modification of its order rather than wilfully disobeying it.

Quoting from its recent decision in Sitaram Enterprises v. Prithviraj Vardichand Jain, the Court stated:

"Contempt of court is a serious legal infraction that strikes at the very soul of justice and the sanctity of legal proceedings."

The Supreme Court categorically rejected Augustine's plea of financial incapacity, stating that:

"Had there been genuine inability, the Respondent-Contemnor ought to have approached this Court for modification rather than wilfully disobeying the order."

It found that Augustine’s continued possession and operation of the property without paying dues not only constituted contempt but also amounted to an abuse of judicial proceedings.

The Court, thus, sentenced Shaji Augustine to simple imprisonment for three months, along with a fine of ₹20,000, with an additional one-month imprisonment in case of default in payment of fine. However, in a final show of judicial magnanimity, it granted him 30 days to purge the contempt by complying with the earlier orders.

The Court firmly concluded: "The misuse of the process of Court with an intent to tarnish the image of judiciary, threatening the integrity and the efficiency of the judicial system cannot be allowed to be overlooked."

The ruling in M/S Chithra Woods Manors Welfare Association v. Shaji Augustine sends an unambiguous and stern message: the authority of court orders is paramount, and litigants cannot manipulate judicial processes for personal gain.

The Court’s reliance on strong judicial precedents and its resolute language reflect its unwavering commitment to preserving the sanctity of judicial authority. As stated: "The pure stream of justice cannot be allowed to be polluted at all."

The judgment thus stands as a vital reaffirmation that respect for court orders is non-negotiable, and wilful disobedience will invite serious consequences.

Date of Decision: April 24, 2025