Case Law Analysis
|National Company Law Appellate Tribunal
Contempt of Court | NCLAT Rules Contempt Cannot Lie for Orders Based on Erroneous Factual Premise : NCLAT
NCLAT holds that contempt proceedings cannot be sustained if the underlying court order rests on a mistaken factual basis. The ruling clarifies that compliance must be objectively possible-disbursements made prior to the order render contempt inapplicable, offering critical protection to liquidators and parties acting in good faith.