Delhi High Court sends Koutons directors to judicial custody

The Delhi High Court has sent two directors of retail apparel company, Koutons, to judicial custody in Tihar Jail for not appearing in a contempt case filed against the company's three directors. The two of the three directors were arrested after they failed to appear before a court which is hearing the contempt case against them for non-payment of around Rs 2.38 crore to R C Velvet, a fabrics manufacturer.

The retail apparel giant had in August 2011, undertaken in court, in a winding up petition filed against it, to pay Rs 2.38 crore to R C Velvet and on failing to do so, a contempt case was filed against Kouton's directors - Devinder Pal Singh Kohli, Bhupinder Singh Sawhney and Gurmeet Singh Sawhney. According to R C Velvet, the amount was due for materials it had supplied to the company.

Following which, the Haryana police arrested Bhupinder and Gurmeet Singh Sawhney pursuant to the non-bailable warrants issued against them for failing to appear before the court. Later, advocate Jasmeet Singh, appearing for the directors, sought their release on bail by recording their personal undertaking that they would pay the amount. He also submitted that three instalments of the amount have already been paid. However, the court rejected the plea and sent them to judicial custody.

R C Velvet, in its contempt plea, had stated that the directors of the company, after paying the first three instalments of the due amount, failed to make further payments. The court had earlier directed the directors to continue to make payment of the instalments punctually as per their undertaking, failing which they were to be present in person before the court.