MUMBAI: The Bombay high court on Thursday directed the directors of Essar House Pvt Ltd and Essar Services India Pvt Ltd to remain present personally in the court on Friday for a contempt petition filed against the companies by ArcelorMittal Nippon Steel India Ltd (formerly Essar Steel India Ltd) and to give a complete disclosure of assets on affidavit including art work, jewellery, furniture costing over Rs 1 lakh or deposit 50 per cent of the amount directed to be furnished earlier.
The HC bench of Justices Gautam Patel and Madhav Jamdar passed the order on a contempt petition filed by Arcelor against the two said companies. Birendra Saraf, senior counsel for Arcelor pointed out that the directors are in willful disobedience amounting to civil contempt of orders of the HC including one passed on February 1, 2021 which gave them time to furnish a bank guarantee. The Essar House had to deposit Rs 35 crore and Essar Services, Rs 47 crore. The HC said, “Not a rupee has been deposited".
The HC after hearing for Akshay Puranik and Cyrus Ardeshir of the two companies said, “If these companies believe they can go around disobeying orders of this court without consequence then they are mistaken. The consequences of this disobedience will now be visible, inevitably, on the directors of the respondents. Contempt proceedings are quasi criminal in nature and for that reason we direct the directors to remain personally present in court tomorrow at 10.30 am.", the court said.
The HC said, “We expect by tomorrow morning a complete disclosure of assets on affidavit of the following by all directors of the two companies."
The disclosures sought includes list of all bank accounts of every description with statements for last one year; income tax returns for last three years, demat holdings, mutual fund and other depository services listing, as well as listing of every item of movable property of the directors of the acquisition or replacement value for more than Rs 1 lakh, including jewellery, furnishings, art works, motor cars etc.
The HC also wanted a list of all immovable property of directors and details of any encumbrances and all bank safe deposit lockers.
“The alternative option for the respondents is to deposit in this court 50% of the amounts ordered by 10.30 am tomorrow", said the HC order.
