The Karnataka High Court convicted advocate R Subramanian and P. Sadanand, who represented the NGO India Awake for Transparency, for criminal contempt for filing multiple petitions on the same cause against founder chairman of Wipro Azim Premji.
The case pertained to the allegations of financial irregularities against Premji. In the judgment Friday, a divisional bench of Justices B Veerappa and K S Hemaleka sentenced the two accused to two months of simple imprisonment and imposed a fine of Rs 2,000 under the provisions of Section 12(1) of Contempt of Courts Act on each of them. Further, the court also restrained the accused from initiating any legal proceedings against the complainants and their group of companies before any court or any authority of law.
The court observed:
A. Judiciary as repository of public faith
65. Like any other organ of the State, the judiciary is also manned by human beings- but the function of the judiciary is distinctly different from other organs of the State-in the sense its function is divine. Today the judiciary is repository of public faith. It is the trustee of the people. It is the last hope of the people. After every knock at all the doors fail, people approach the judiciary as the last resort. It is only temple worshiped by citizen of this nation regardless of religion, caste sex, place of birth. It is high time judiciary must see that temple of justice must not crack from inside, which will lead to a catastrophe in the justice delivery system. We must remember the woodpecker inside pose larger threat than the storm outside.
B. Judicial function
67. It is true that judges should not be hypersensitive in discharging judicial functions but that does not mean and imply that they ought to maintain angelic silence.
C. Rise of speculative litigation
68. The experience of the court depicts in the recent years there has emerged a trend of filing speculative litigation before various court of law not just court of first instance but also in the High Court and the Supreme court. It is the duty of the courts to ensure that such litigation shall be weeded out at first instance rather than allowing to be festered thereby coming in way of a genuine litigants seeking justice treating the court as “Temple of Justice” to protect precious public and judicial time.
“This augers ill for the health of our judicial system”
The Ministry of Corporate Affairs has revoked the license issued to India Awake to Transparency NGO. The court observed relying upon observations in writ petition dated 12.02.2021 and 25.03.2021 it was held that this is a fit case for filing suo moto contempt petition. The material on record shows that the proceedings were filed in name of the non-existent company challenging the amalgamation of three companies of Azim Premji with a Group company even though no outside shareholder or creditor was affected.
The high court in its single judge bench order last year recorded:
Thus there remains no doubt for that petitioner is indulging in forum shopping on the very same cause of action as held in Udyami Evam Khadi Gramudyog Welfare Sanstha & Anr. vs. State of Uttar Pradesh & Ors. reported in (2008) 1 SCC 560 this amounts to criminal contempt as the core issue is same in all these writ petitions is one and the same.
The court in December 23, 2021 has framed following charge
“You, in spite of dismissal of all writ petitions on the same cause of action and despite of warning and prohibition by the orders of the court, filed several cases and continued the proceedings and your conduct is nothing but a daring ride on the court and you have made a mockery of the judicial process by filing one or the other frivolous legal proceedings, not only affecting the interest of public at large but also interfering with the administration of justice by misusing the forum of various courts, wasting judicial time and abusing the process of law. Thereby amounting to criminal contempt within the meaning of the provisions of Section 2(c) of the Contempt of Courts Act, 1971 punishable under Section 12 of the said Act, within the cognizance of this court.”
The High Court in February last year had imposed a cost of Rs 10 lakh on India Awake for Transparency for filing multiple petitions on the same cause of action, seeking to register a case against Premji and others.
The division bench too made the following observations:
In the light of aforesaid judgment, this court is of considered opinion that this judgment is nothing but sheer abuse of process of law. The appellant has been almost unsuccessful on almost 9 occasions by filing frivioulous litigations. Therefore the learned judge was justified in imposing heavy cost while disposing the writ petition.
The Supreme Court earlier in October 2021 extended the stay on criminal proceedings against former Wipro chairman Azim Premji, his wife and others on their plea seeking quashing of summons issued by a Bengaluru court on a “frivolous” and “mischievous” complaint filed by an NGO alleging breach of trust and corruption in merger of three companies with a Premji group firm.
Indian billionaire and founder of IT giant Wipro, Azim Premji, and his wife are facing allegations of financial fraud alongside two others. The case was for alleged criminal breach of trust and illegal transfer of funds. The case was registered after the Chennai-based non-governmental organisation (NGO) India Awake for Transparency accused them of illegally transferring funds from 3 different companies to a new company.
Hasham Investment and Trading Co Pvt Ltd & Ors vs. India Awake Transparency Pvt Ltd & Ors. [Crl.CCC 9/2021]
Hon’ble Mr. Justice B.Veerappa
Judge, Karnataka High Court
Hon’ble Mrs. Justice K S Hemalekha
Judge, Karnataka High Court
