SC affirms Commercial High Court’s jurisdiction to hear Contempt Proceedings under Companies Act

In a significant ruling, the Supreme Court has affirmed that the Commercial High Court holds the jurisdiction to hear and determine contempt proceedings stemming from violations of its interim orders issued under the Companies Act No. 7 of 2007

- By LAKMAL SOORIYAGODA

The judgement was delivered by Justice Mahinda Samayawardhena, with Justices Preethi Padman Surasena and Arjuna Obeyesekere concurring. The Court reviewed an extensive body of constitutional and statutory provisions in reaching its decision, including Articles 105, 111, and 154P of the Constitution, along with the Judicature Act, the Penal Code, the Civil Procedure Code, and relevant sections of the Companies Act.

The Court emphasised that the Commercial High Court is a Provincial High Court established under Article 154P and derives its contempt jurisdiction from Section 18 of the Judicature Act. This section provides that High Courts have authority to try and punish for any contempt committed against or in disrespect of its authority, including both in facie and ex facie curiae contempt.

Accordingly, the preliminary objection raised by the 1st respondent was overruled, and the appeal was dismissed. This judgement affirms the authority of Commercial High Courts to maintain the integrity of their own orders and reaffirms the importance of judicial authority in upholding the rule of law.