# In the matter of Rajan Chadha & Anr. vs. Sanjay Arora & Anr.

> HC judgment dated 2024-07-03. Citation: TCN-2024-HC-00140. The present petition was filed alleging willful disobedience of the order dated 11th June, 2020,…

- **Court:** HC
- **Order date:** 3 Jul 2024
- **Citation:** TCN-2024-HC-00140
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/rajan-chadha-anr-vs-sanjay-arora-anr-1eb16b6c

## Summary

### Background

The present petition was filed alleging willful disobedience of the order dated 11th June, 2020, passed by the Delhi High Court, and orders dated 17th June, 2020, and 1st July, 2020, passed by the learned Arbitral Tribunal.

## Facts

A Memorandum of Understanding (MOU) was executed on 21st December, 2019, among the shareholders and directors of RBT Private Limited.

Disputes arose between the petitioners and respondent no. 1 regarding the fulfillment of obligations under the MOU.

The petitioners filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking to restrain the respondent no. 1 from disposing of assets of RBT Private Limited.

The Arbitral Tribunal directed the respondent no. 1 to pay the EMIs into the loan account of the company.

The petitioners alleged that the respondents failed to pay the EMIs, and the petitioners were forced to pay them to the South Indian Bank.

The petitioners alleged that the respondent no. 1 sold hypothecated machinery.

…

## Issues and analysis

### Issue 1: Whether the respondents are …

**Ratio:** Contempt must be established beyond reasonable doubt, and the disobedience must be

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**Reasoning:** The court considered the financial difficulties of the respondent no. 1, the ongoing CIRP

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**Interpretation:** The court interpreted the relevant case laws regarding contempt of court,

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**Application:** The court applied the principles of contempt law to the facts of the case and

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## Parties

- **Judges:** MINI PUSH…
- **Appellants:** Rajan C…
- **Respondents:** RBT Private…; Sanjay…
- **Other parties:** CoC…; IRP…; +1 more
- **Advocates:** Rohan Ja…; Akshay S…; +7 more

## Timeline

- **2019-12-21 — MOU Exec…**: A Memorandum of Understanding (MOU) was executed amongst all the shareholders and…
- **2020-06-11 — Court Or…**: The present petition has been filed alleging willful disobedience of the order dated 11th…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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