High Court of Gujarat
MEHSANA DISTRICT CENTRAL COOPERATIVE BANK LTDversusPANCHOLI KOKILABEN BHADRISHBHAI
- Decided
- Disposal
- 26-DISMISSED @ ADM.STAGE
Holding
The Court held that the bank and its officers willfully disobeyed the interim stay order by executing the sale deed, amounting to contempt under Order XXXIX Rule 2A of the CPC, and therefore the bank's appeal was misconceived and dismissed.
Summary
The High Court of Gujarat dismissed an intra‑court appeal filed by Mehsana District Central Cooperative Bank Ltd challenging a single judge's order that found the bank and its officers in contempt for executing a sale deed after an interim stay order. The interim order of 07‑01‑2021 had stayed the implementation of an auction dated 05‑10‑2020 and directed the parties to maintain the status‑quo over the property. The bank proceeded to execute a sale deed on 25‑02‑2021, creating a third‑party right, which the single judge held to be a willful breach of the stay and contempt under Order XXXIX Rule 2A of the CPC. The bank argued that its officers had apologized, but the court found no purge of contempt and rejected the appeal as misconceived because it was not filed by the officers themselves. Consequently, the appeal was dismissed and the related civil application for breach of order was also disposed of.
Issues considered
- Whether the execution of a sale deed by the bank after the interim stay order constitutes contempt of court under Order XXXIX Rule 2A of the CPC.
- Whether the appeal filed by the bank is maintainable when the contempt finding is against its officers.
- Whether civil imprisonment and costs can be imposed for contempt in the present circumstances.
- Whether the civil application for breach of the interim order should be disposed of following the dismissal of the appeal.
Legislation cited
- Code of Civil Procedure, 1908 — s. Order XXXIX Rule 2A
Subjects
- interim injunction
- contempt of court
- Civil Procedure Code
- Order XXXIX Rule 2A
- civil imprisonment
- property auction
- stay order
- misconceived appeal
- bank
Judgment
C/LPA/426/2026 ORDER DATED: 11/06/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/LETTERS PATENT APPEAL NO. 426 of 2026
In R/SPECIAL CIVIL APPLICATION/188/2021
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2026
In R/LETTERS PATENT APPEAL NO. 426 of 2026
==========================================================
MEHSANA DISTRICT CENTRAL COOPERATIVE BANK LTD
Versus
PANCHOLI KOKILABEN BHADRISHBHAI & ORS.
==========================================================
Appearance:
MR DIPAN DESAI(2481) for the Appellant(s) No. 1
MR BAIJU JOSHI(1207) for the Respondent(s) No. 1
MR. DEVANG VYAS, SENIOR ADVOCATE for MR JASH S
THAKKAR(11271) for the Respondent(s) No. 4
==========================================================
CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE
SUNITA AGARWAL
and
HONOURABLE MR.JUSTICE D.N.RAY
Date : 11/06/2026
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA
AGARWAL)
1. Mr. Baiju Joshi, learned advocate whose name is shown
in the cause-list on behalf of the respondent no. 1 would
submit that he has no instructions to appear on behalf of the
said respondent. In view of the said statement, the name of
Mr. Baiju Joshi, learned advocate be deleted from the cause-
list.
2. Having heard the learned counsel for the parties and
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C/LPA/426/2026 ORDER DATED: 11/06/2026
perused the record, it is noteworthy that this intracourt
appeal is directed against the judgment and order dated
13.04.2026 passed by the learned Single Judge in Civil
Application (for breach of order) No. 1 of 2021 in Special
Civil Application No. 188 of 2021 filed agitating the breach of
interim order dated 07.01.2021 passed in the writ petition
whereby the parties have been directed to maintain status
qua with respect to the property in question. The order dated
07.01.2021 granting the interim injunction in the writ
petition of 2021 is to be quoted hereinunder:-
Heard Mr.Baiju Joshi, learned counsel for the petitioner
through Video Conferencing.
Issue NOTICE, returnable on 9.2.2021.
In the meantime, there shall be ad-interim relief in
terms of paragraph No.9(B).
Direct Service is permitted. In addition thereto, the
Registry is requested to communicate this order through
E-mail and / or Fax.
3. The relief in paragraph no. 9 (B) prayed in the writ
petition is further noted hereinunder:-
(B) During the pendency hearing and final disposal of this
petition, this Hon’ble Court be pleased to stay the implementation,
execution and operation of the order, dated 5.10.2020, passed by
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C/LPA/426/2026 ORDER DATED: 11/06/2026
the respondent No. 3 as well as the further proceedings held
pursuant to such order dated 5.10.2020 and further be pleased to
direct the respondents to maintain the status-quo qua the property
in question.
4. For a bare perusal of the relief clause in the writ petition
extracted hereinabove and the interlocutory order, it is to be
noted that by virtue of the interim order, the implementation,
execution and operation of the order dated 05.10.2020
whereby the property in question had been auctioned was
stayed, directing the parties to maintain status quo qua the
property in question.
5. However, it seems that the respondent no. 2 – Bank/
appellant herein had executed a sale deed dated 25.02.2021
without seeking leave or permission of this Court, within a
short period of the passing of the interim order, creating a
third-party right over the property in question which has led
to the filing of the Civil Application for breach of the order.
The learned Single Judge in the judgment impugned has
clearly found the opposite party no. 2 namely the appellant –
Bank and the respondent no. 4 – purchaser guilty of breach
of the interim order passed by this Court and thus, having
committed breach of the provisions of Order XXXIX Rule 2A
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C/LPA/426/2026 ORDER DATED: 11/06/2026
of the Civil Procedure Code willfully and deliberately.
6. While holding guilty to the appellant – Bank and the
purchaser, the learned Single Judge has also found the
respondent no. 3 namely the Special Recovery Officer of the
Bank as liable for payment of cost and a fine in lieu of
sentencing them to civil imprisonment under Order XXXIX
Rule 2A of the CPC. The cost so imposed by this Court vide
order dated 13.04.2026, which was liable to be paid within a
period of one week from the date of the order, has not been
paid so far. The result is that in case of default, the officers
of the Bank namely the Chairman/ Managing Director ,
Rajmahel, Mahesana and Mr. P. H. Sanghavi, Special
Recovery Officer are required to undergo simple
imprisonment for a period of one month.
7. Mr. Dipan Desai, learned advocate appearing for the
appellant vehemently argued that there was no justification
for the learned Singe Judge to hold the Bank and its officers
as guilty of committing contempt of its order, inasmuch as,
the officers had apologized and admitted their mistakes in
the Court in the replies filed upon notices being issued by the
learned Single Judge.
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C/LPA/426/2026 ORDER DATED: 11/06/2026
8. However, on a query made by the Court, it is admitted
that the officers of the Bank who were found guilty of
committing contempt did not do anything to purge the
contempt. The contempt notice issued by this Court for
execution of the sale deed creating third party rights inspite
of stay of the implementation, execution and operation of the
auction dated 05.10.2020, cannot be discharged for this
reason. The bald plea of admitting mistake, having been
committed by the officers of the Bank in execution of the sale
deed, inspite of the stay of the implementation, execution of
the auction held on 05.10.2020 cannot be a reason for us to
find any error in the order of the learned Single Judge.
9. Further, no indulgence can be granted to the officer of
the Bank who filed an affidavit before the learned Single
Judge denying the allegations made in the Civil Application
while reserving his rights to reply on the merits of the case. A
perusal of the reply filed on behalf of the respondent no. 2
namely the General Manager of the Bank/appellant herein
indicates that he has challenged the maintainability of the
application under Article 215 of the Constitution of India and
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C/LPA/426/2026 ORDER DATED: 11/06/2026
further submitted that the auction of the property having
been completed on 05.10.2020, the successful bidder had
been given possession of the auction property and the
property in question was in the possession of the bidder i.e
respondent no. 4.
10. It is also pertinent to note that there is no whisper in the
reply submitted on behalf of the respondent no. 2 as to how
and when the possession of the property in question was
handed over to the respondent no. 4, when the sale deed was
executed only after the interim order passed by this Court,
staying effect and operation of the auction held on
05.10.2020.
11. We are of the clear view that there was no question of
handing over the possession of the property in question to
the respondent no. 4 namely the purchaser, when no sale
deed had been executed prior to the interim order dated
07.01.2021 passed by this Court staying the implementation
and effect of the auction proceedings.
12. In view of the above, from the stand taken by the
respondent no. 2 in the affidavit-in-reply filed in Civil
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C/LPA/426/2026 ORDER DATED: 11/06/2026
Application No. 1 of 2021 for breach of the order, it is
evident that though there was a statement to the effect that
there is no willful disobedience of the order passed by this
Court but the respondent no. 2 has tried to justify his action
in handing over possession to a third party namely the
respondent no. 4 who was merely an auction purchaser in the
auction held on 05.10.2020, inspite of stay of the
implementation and execution of the auction, itself.
13. The willful and deliberate disobedience of the interim
order dated 07.01.2021 passed by the writ Court is evident
from the said fact itself.
14. Even otherwise, the present appeal is found to be wholly
misconceived, inasmuch as, it has not been filed on behalf of
the officers who have been found guilty for breach of the
order of this Court and have been asked to pay cost
individually in lieu of sentencing them to civil imprisonment
for a period of one month under Order XXXIX Rule 2A of the
CPC.
15. The present appeal has been filed by the Bank and not
by the officers who were found guilty of contempt and is
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C/LPA/426/2026 ORDER DATED: 11/06/2026
hence, liable to be dismissed as misconceived.
16. The appeal stands dismissed, accordingly. In view of
dismissal of main appeal, civil application is also disposed of.
(SUNITA AGARWAL, CJ )
(D.N.RAY,J)
VARSHA DESAI
Original copy of this order has been signed by the Hon'ble Judges.
Digitally signed by: VARSHABEN VAGHAJIBHAI DESAI(HC01393), PRIVATE SECRETARY, at High Court of Gujarat on 15/06/2026 17:40:03
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