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2005 Supreme(Bom) 723

IN THE HIGH COURT OF BOMBAY
Kisan Vikas Ginning Pressing Limited
Versus
State of Maharashtra
Decided on 10/6/2005

The legal status of a society and the absence of a prohibiting court order are crucial in determining contempt.

Headnote:

Contempt - Conversion of Society to Company - Maharashtra Co-operative Societies Act - Section 77-A, Section 102 - The court discussed the conversion of a co-operative society into a public limited company, the status of the society, and the legal implications of the certificate of incorporation. The court highlighted the absence of a prohibiting order from the court directing the society not to carry on any business in the name of the society.

Fact of the Case:

The petitioner claimed that the society was converted into a public limited company, but the respondents denied this claim. The court found that the society's status had not legally come to an end, as no order for liquidation or winding up was passed.

Finding of the Court:

The court found that the society's existence had not legally come to an end and that there was no prohibiting order from the court directing the society not to carry on any business in the name of the society.

Issues: Dispute over the existence of the society and the conversion claim, misrepresentations made by the petitioner, and the absence of a prohibiting court order.

Ratio Decidendi: The society's status had not legally come to an end, and there was no prohibiting court order directing the society not to carry on any business in the name of the society.

Final Decision: Contempt petition dismissed with no order as to costs.

Judgment

( 1 )

( 2 ) THIS petition is moved by one eknath Jadhav claiming to be a Managing director of Kisan Vikas Ginning and Pressing limited, a public limited company alleging contempt of Court. Contempt was alleged to have committed by respondents. According to the petitioner, Kisan Vikas Ginning and pressing Society which was co-operative society passed resolution dated 13-7-98 to convert the said society into a public limited company and on the basis of said resolution of the society, he has obtained certificate of incorporation from Registrar of Companies on 9-4-1999. According to the petitioner, the status of the society came to an end and it has become a public limited company. Inspite of these facts, respondent no. 2 exercising powers u/s 77-A of Maharashtra Co-operative societies Act (hereinafter referred to as societies Act for short), had appointed administrator by his order dated 4-7-2000. The said order was challenged by preferring Writ petition No. 3i43/2000. That Writ Petition was allowed and the order of appointment of administrator was quashed and directions were also given to take steps u/s. 102 of Societies act to liquidate the society. That order was challenged by respondent no. 1 by preferring letters Patent Appeal No. 169/02. The said l. P. A. was dismissed. However, while disposing the said L. P. A. the Division Bench clarified that respondent no. l society shall continue to be a company until certificate of registration is cancelled. The certificate of registration is not yet cancelled. Inspite of these facts, respondent no. 2 was allowing the erstwhile co-operative society to work as a ginning and Pressing society at Shiur by the same name and that act was alleged to be a contemptuous act. So this petition was moved for taking action of contempt.

( 3 ) ON notice issued by this Court, the office bearers respondents 7, 8 and 10 appeared. They have filed affidavits in reply. These office bearers came with the contention that the present petitioner made misrepresentation in the Court alleging the conversion of society into a company but the society has not passed any such resolution. In writ Petition No. 4429/00, on the direction from this Court, Registrar of Co-operative societies, conducted enquiry and submitted report that no such resolution is passed by the society and no general body meeting was held as alleged by the petitioner. Thereafter the petitioner entered into compromise and agreed for restoration of the status of society. Thereafter, the office bearers of the society, moved the Registrar of company for cancellation of certificate and the Registrar of the Companies intimated that the company's incorporation is not by way of conversion of society but it is independent company. So status of the society did not come to an end. As such there was no contempt as alleged by the petitioner. There is no order from the court prohibiting the society to carry on business as a society.

( 4 ) THE learned advocate Shri. A. G. Godhamgaonkar appearing on behalf of petitioner made submission that the Division bench of this Court while deciding Letters patent Appeal No. 169/2000 held that respondent no. 1 shall continue to be a company until certificate of registration is cancelled. It has also been observed that by consent of the parties or by passing a purshis there cannot be cancellation of a company. So this order certifies the status of petitioner company. Inspite of this position, respondents claiming to be office bearers of the society intend to carry out business in the name of society and that act is alleged to be a contemptuous act. On the other hand, learned advocate shri. Bajaj appearing on behalf of the office bearers of the society made submission that even as per first order passed in W. P. No. 3143/00, the Registrar did not take action to wind up the society as directed by the Court. So society's status is existing today also. He also pointed out that present petitioner himself is party to a pur


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