Bombay HC Accepts NSEL Defaulter Arun Sharma's Unconditional Apology In Contempt Case After ₹1 Lakh Payment

Mumbai, July 6: The Bombay High Court has accepted the unconditional apology of Arun Kumar Sharma of Lotus Refineries, an alleged defaulter in the National Spot Exchange Limited (NSEL) scam, in a contempt petition filed over his failure to comply with an earlier court order directing him to pay costs of Rs 1 lakh.

Contempt Proceedings

Justice Madhav Jamdar passed the order on June 29 after Sharma appeared before the court and handed over a demand draft of Rs 1 lakh to NSEL in compliance with the court's July 1, 2024, order. The amount had been imposed as costs after the court found that Sharma had filed a frivolous petition.

The contempt petition was filed by NSEL alleging that Sharma had failed to comply with the order despite repeated directions. On June 17, the court observed that a prima facie case of contempt had been made out and directed Sharma to remain personally present. When he failed to appear on June 25, the court warned that a non-bailable warrant would be issued if he did not appear on June 29.

Although the matter was not listed on June 29 as scheduled, it was taken up after both sides informed the court that Sharma was present in compliance with the earlier order.

Court Accepts Apology

Sharma filed an affidavit tendering an unconditional apology and confirmed that the Rs 1 lakh had been paid. Counsel for NSEL acknowledged receipt of the demand draft but urged the court not to accept the apology and sought six months' imprisonment for Sharma.

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However, Justice Jamdar held that since Sharma had complied with the July 1, 2024, order and had "purged the contempt" by paying the costs and tendering an unconditional apology, there was no reason to proceed further. The court accepted the apology and disposed of the contempt petition.

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