Breach of court undertaking is contempt

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Does the breach of undertakings given to a court in the course of agreeing a settlement amount to contempt of court?

Gavel_and_old_bookRuling in Prominent Advertising Services v Koutons Retail India Limited Delhi High Court found that “wilful and intentional breach” of undertakings would constitute contempt of court as defined under section 2(b) of the Contempt of Court Act, 1971. The court held that as “dishonouring an undertaking given to the court would amount to a fraud on court and … would inevitably affect the administration of justice”, it naturally follows that “furnishing of an undertaking, being fully aware that there was a reasonable probability that it may not be possible to comply with the same” would also amount to contempt of court.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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