Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 31 July 2026

Case Overview

  • Parties: Padmashree Dr. Vitthalrao Vikhe Patil Sahakari Sakhar Karkhana Ltd. (Appellant) vs. The Shri Ganesh Sahakari Sakhar Karkhana Ltd. & Ors. (Respondents).
  • Nature of Proceeding: Special Leave Petitions (C) No. 12737‑12738 of 2026 filed against the Bombay High Court, Aurangabad Bench judgment dated 19‑12‑2025 which dismissed contempt petitions.
  • Background: An arbitral tribunal issued an injunction on 02‑09‑2024 prohibiting the respondents from entering into mortgages. Despite this, respondents allegedly entered mortgages and later obtained No‑Objection Certificates (NOCs) from the Arbitrator‑Commissioner of Sugar on 14‑10‑2024 and 30‑12‑2025 permitting Respondent‑2 Bank to disburse loan amounts.
  • Legal Context: The Court referred to the precedent in Alka Chandewar Vs. Shamshul Ishrar Khan and extracted paragraphs discussing the enforceability of arbitral tribunal orders under Section 17 of the Arbitration and Conciliation Act, 1996. The 2015 Amendment (Section 17(2)) makes such orders deemed to be orders of the Court for all purposes, eliminating the need for a separate contempt application to the High Court.
  • Counsel: For the appellant – Mr. N.K. Kaul (Senior Counsel) and a team of advocates; for the respondents – Mr. Sudhanshu Choudhary (Senior Counsel) and a team of advocates.
  • Contentions: Appellant counsel argued that respondents violated the arbitral injunction by mortgaging assets. Respondent counsel contended that the NOC letters dated 14‑10‑2024 and 30‑12‑2025 negated any contempt.

Final Outcome

  • The Supreme Court granted leave and allowed the appeals, setting aside the Bombay High Court’s dismissal of the contempt petitions.
  • The contempt petitions are restored; the matter is remanded to the Bombay High Court to decide the alleged contempt on factual grounds.
  • The Court directed the High Court to dispose of the contempt proceedings expeditiously, preferably within three weeks from the date of this order.
  • The interim order passed by the Supreme Court shall continue to operate pending disposal of the contempt petitions.
  • All civil appeals and any pending interlocutory applications are disposed of as per the signed order.

Topics: Contempt of Court, Arbitration Enforcement