K. T. CHANDY vs MANSA RAM ZADE

The Supreme Court held that the termination of an employee's service by the employer, in accordance with the contract of service which allowed termination with three months' notice, does not amount to contempt of court when there is no interim injunction in place. The Court clarified that the honest exercise of contractual rights does not obstruct the course of justice, even if it renders some reliefs claimed in the suit infructuous. The appeal was allowed, overturning the High Court's finding of contempt.