IN THE HIGH COURT OF BOMBAY
Khandeparkar R.M.S., J.
Santosh Dattaram Nadkarni others .... Petitioners.
Versus
New India Industries Limited others.... Respondents.
Contempt Petition No. 14 of 2003 in Writ Petition No. 2473 of 2001, decided on 26-2-2004.
Advocates appeared :
P.M. Pradhan with M. Londhe, i/b. Sanjay Udeshi Co., for petitioners.
H.N. Thakore, for respondent Nos. 1, 2 3.
N. Engineer i/b. RMG Law Associates, for respondent Nos. 4 5.
Evidently all the respondents have knowingly and wilfully disobeyed the said order and are guilty of committing wilful breach of the said undertaking, warranting punishment for contempt of Court. The respondents are accor- dingly held guilty of wilful disobedience and breach of undertaking given to the Court on 3rd December, 2001 in writ petition No. 2473 of 2001, and, therefore, they are held liable to be punished for the same
"(1) The respondent company agrees to pay VRS amount eligible to the petition Nos. 1 to 4 after adjusting the amount as deposited by the respondent company towards their retrenchment compensation in the Industrial Court, which has been duly withdrawn by the petitioners Nos. 1 to 4 from the industrial Court. The respondent company undertakes to pay the said amount to the petitioners Nos. 1 to 4 along with interest at the rate of 10% per annum from 16th March, 2001.
(2) The respondent company undertakes to pay the amount with interest as mentioned in Clause 1 hereinabove to the petitioner Nos. 1 to 4 on or before 30th November, 2002."
2.It is the case of the petitioners that till this date, the respondents have not paid the said amount and the interest thereon to the petitioners and thereby have willfully violated the said order and have committed breach of the undertaking given by them to the Court and accepted by the Court, and therefore, they are liable to be punished for contempt of Court. Prima facie case being made out, show cause notice came to be issued to the respondents/contemners on 13th February, 2003 in response to which the respondents filed their replies.
3.The reply by the respondents No. 1 to 3 is that they joined as the Directors of the respondent No. 1 since 15th July, 2002 and, therefore, they were not the Directors at the time of singing of the consent terms. At the time of change in management of the company from the respondent No. 4 to the respondent Nos. 2 and 3, the alleged claim of the workers i.e. the petitioners herein, was not disclosed to them. They came to know about the writ petition and the consent terms filed therein by the earlier management only when they received show the cause notices in these proceedings. It is their further case that the claim of the petitioners has not been adjudicated and even the contents of the consent terms does not specify as to what is the exact amount claimed by the petitioners. Apart from the fact that there is no executable order, in any case, the contempt proceedings cannot be allowed to be substitute for the execution proceedings.
4.The defence of the respondent No. 4 is that he has ceased to be the Director of respondent No. 1 since 15th July, 2002, and therefore, he cannot be held liable for the dues of the respondent No. 1 to the petitioners. It is his further case that the respondent No. 3 was duly appraised of the liability of the company to the petitioners as also the order passed in writ petition. In any case, the order in question being executable one, it is not permissible for the petitioners to
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