Disobedience Of Interim Measures Due To Insolvency Proceedings Is Not Contempt: Delhi High Court

The Delhi High Court ruled that non-compliance with interim measures due to insolvency proceedings does not constitute contempt. The case involved Sanjay Arora, who failed to meet financial obligations under a Memorandum of Understanding with RBT Private Limited, leading to arbitration. Despite interim orders to pay EMIs and safeguard company assets, Arora's non-compliance was attributed to financial constraints and ongoing disputes. The court emphasized that contempt requires willful disobedience, which was not proven beyond a reasonable doubt in this case.