Arcon Systems Pvt. Ltd. Vs Saluja Construction Company Ltd… — Contempt of Court | Delhi HC (2026)

Arcon Systems Pvt. Ltd. Vs Saluja Construction Company Ltd… — Contempt of Court | Delhi HC (2026)

What the court decided

AI extract

Outcome

Revival of the contempt proceedings effected: notice ordered and accepted by the respondents; breach of the undertaking dated 07.02.2026 conceded as uncontroverted; orders under Paragraph 4 deferred to the next hearing (listed 07.05.2026) to enable the respondents to purge their conduct; a Pay Order of Rs.20,00,000/- tendered by the respondents' counsel and accepted by the petitioner without prejudice to its rights and contentions; interim directions imposed barring respondent no.1 and its directors from travelling abroad and from alienating or dealing with immoveable properties without leave of the Court.

Issue for consideration

Whether the contempt proceedings should be revived on account of the respondents and their directors not having adhered to the undertaking incorporated in the order dated 07.02.2026. +1 more

Court's answer

The respondents are in breach of the undertaking as recorded in the order dated 07.02.2026, and therefore appropriate orders in terms of Paragraph 4 of that order are required to be passed against respondent no.1 and its directors.

Ratio / Principle

Passage of orders in terms of Paragraph 4 of the order dated 07.02.2026 was deferred till the next date of hearing to enable the respondents to purge their conduct.

Key takeaways

Till the next date of hearing, respondent no.1 and its directors shall not travel out of the country without the leave of the Court.ratio¶29
Till the next date of hearing, respondent no.1 and its directors shall not alienate or deal with any of their immoveable properties without the leave of the Court.ratio¶30

Detailed headnote1 paragraphs

Delhi High Court (Sachin Datta, J.), CONT.CAS(C) 41/2025, Arcon Systems Pvt Ltd v. Saluja Construction Company Ltd & Ors. — CM APPL.19423/2026 seeking revival of contempt proceedings in terms of the liberty granted by order dated 07.02.2026. The respondents and their directors had not adhered to the undertaking recorded therein: Rs.80,00,000/- due on or before 28.02.2026 was paid only on 12.03.2026 by RTGS (the petitioner's account subsequently debit-frozen/liened on orders of the Cyber Crime Police Station, Industrial Area, Chandigarh), and Rs.1,00,00,000/- payable on or before 31.03.2026 was not paid at all. Senior counsel for the respondents was unable to controvert the breach; orders under Paragraph 4 of the 07.02.2026 order were accordingly warranted but deferred to the next hearing to enable the respondents to purge their conduct. Notice was issued and accepted; a Pay Order of Rs.20,00,000/- was tendered and accepted without prejudice. Interim directions till 07.05.2026: respondent no.1 and its directors not to travel out of the country and not to alienate or deal with immoveable properties without the Court's leave. Breach was flagged as attracting severe actions under the Contempt of Courts Act, 1971.

$~2

IN THE HIGH COURT OF DELHI AT NEW DELHI

- CONT.CAS(C) 41/2025

ARCON SYSTEMS PVT LTD. .....Petitioner Through: Mr. Saurabh Seth, Ms. Neelampreet Kaur, Mr. Abhiroop Rathore and Mr. Kabir Dev, Advocates.

versus

SALUJA CONSTRUCTION COMPANY LTD & ORS.

.....Respondents Through: Mr. P.S. Bindra, Sr. Adv. alongwith Ms. Madhu S. Oberoi, Mr. Ankit Kakkan and Ms. Deepti Mehra, Advocates.

CORAM:

HON'BLE MR. JUSTICE SACHIN DATTA

O R D E R % 06.04.2026

CM APPL.19423/2026 (seeking revival of contempt proceedings)

The present application has been filed by the petitioner/applicant seeking revival of the present petition in terms of the liberty granted vide order dated 07.02.2026. The said order reads as under:-

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/04/2026 at 12:20:50

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/04/2026 at 12:20:50

This is a digitally signed order.

It transpires that the respondents and its directors have not adhered to the undertaking incorporated in the aforesaid order dated 07.02.2026.

It is submitted by the petitioner that a sum of Rs.80,00,000/-, which was due on or before 28.02.2026, was paid only on 12.03.2026 through an RTGS transfer. However, subsequently, the petitioner’s bank account, into which the remittance had been made, was subjected to a debit freeze/lien pursuant to orders issued by the Cyber Crime Police Station, Industrial Area, Chandigarh. It is stated that the said action was taken on account of the fact that the bank account from which the remittance had been made by the respondents, was under investigation by law enforcement agencies at Chandigarh.

It further transpires that an amount of Rs.1,00,00,000/- which was payable on or before 31.03.2026 has not been paid at all by the respondents. 5. It is noticed that the order dated 07.02.2026 clearly records that any breach of the agreed terms would be treated as wilful/ egregious breach of the undertaking given to this Court, entailing severe actions under the Contempt of Courts Act, 1971 against the respondent company and its directors, who also gave their undertaking as recorded in the said order dated 07.02.2026.

Issue notice.

Learned counsel, as aforesaid, accepts notice on behalf of the respondents.

Learned senior counsel for the non-applicants/respondents is unable to controvert that the respondents are in breach of the undertaking as recorded in the order dated 07.02.2026, and therefore appropriate orders in terms of the Paragraph 4 of the said order are required to be passed against the

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/04/2026 at 12:20:50

respondent no.1 and its directors. He, however, requests that orders in this regard be deferred till the next date of hearing to enable the respondents to purge their conduct.

A Pay Order of Rs.20,00,000/- has been handed over by the learned counsel for the respondents to the petitioner today. The same is reproduced herein below:

The same has been accepted by the petitioner without prejudice to its rights and contentions.

Till the next date of hearing:

(i) the respondent no.1 and its directors shall not travel out of Country without the leave of this Court.

(ii) the respondent no.1 and its directors shall not alienate or deal with any of their immoveable properties, without the leave of this Court.

List on 07.05.2026.

SACHIN DATTA, J

APRIL 6, 2026/ at

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/04/2026 at 12:20:50