PATNA HIGH COURT
Mishra and S.P.Singh JJ.
Mineral Development Ltd
Versus
State Of Bihar
A.F.O.O. No. 8 of 1958 ;
Decided On : MAY 02, 1962
CONTEMPT OF COURT - DISOBEDIENCE OF INJUNCTION - LIABILITY OF PRINCIPAL FOR ACT OF AGENT - INDEPENDENT CONTRACTOR - JURISDICTION OF COURT TO PUNISH FOR DISOBEDIENCE OF INJUNCTION - TRANSFER OF SUIT.
Fact of the Case:
The appellant, Mineral Development Limited, was held in contempt of court for violating an order of ad interim injunction issued by the Subordinate Judge of Hazaribagh, restraining it from carrying on mining operations in certain areas leased to it by the proprietor of the Ramgarh Raja. The appellant claimed that it was not engaged in mining operations, but that it had authorized Ambika Prasad Singh to carry out the operations as its agent. The State of Bihar, the respondent, contended that Ambika Prasad Singh was not an agent of the appellant, but an independent contractor.
Finding of the Court:
The court held that Ambika Prasad Singh was not an agent of the appellant, but an independent contractor, and that the appellant could not be held liable for his act of disobedience of the injunction. The court also held that the Subordinate Judge, who had issued the injunction, did not have jurisdiction to punish the appellant for disobedience of the injunction, as the suit had been transferred to the Court of the first Additional Subordinate Judge.
Issues: 1. Whether Ambika Prasad Singh was an agent of the appellant or an independent contractor.2. Whether the appellant could be held liable for the act of Ambika Prasad Singh.3. Whether the Subordinate Judge had jurisdiction to punish the appellant for disobedience of the injunction.
Ratio Decidendi: 1. An agent is a person who is under the direct supervision and control of the principal and is liable to account to him for every matter which he has dealt with and whose only duty is to establish a jural relation between the principal and a third party or who represents him in dealings with a third party.2. An independent contractor is one who undertakes to produce a given result, but so that in the actual execution of the work he is not under the order or control of the person for whom he does it, and may use his own discretion in things not specified before hand.3. In the present case, Ambika Prasad Singh was authorized to carry on all the operations of the mines, according to the agreement as referred to, independent of the supervision and control of the principal and as such he cannot be regarded as an agent.4. The appellant could not be held liable for the act of Ambika Prasad Singh, as he was not an agent of the appellant.5. The Subordinate Judge did not have jurisdiction to punish the appellant for disobedience of the injunction, as the suit had been transferred to the Court of the first Additional Subordinate Judge.
Final Decision: The appeal was allowed and the order of the Subordinate Judge was set aside.
S. C. Misra, J.
1. This appeal arises out of an order passed by the learned Subordinate Judge of Hazaribagh, holding the appellant, the Mineral Development Limited, a Company incorporated under the Indian Companies Act, guilty of violating the order of ad interim injunction passed by the Court and as such liable to punishment under Order 39, Rule 2 (3), of the Code of Civil Procedure. The order passed was attachment of the properties of the appellant of the value of Rs.6,000/-. The appellant is defendant No.4 in Title Suit No.53 of 1954 brought by the respondent, State of Bihar, for a declaration that the appellant had no right to continue the operations of the mines in certain areas which were leased out to it by the proprietor of the Ramgarh Raja after the interest of the lessor vested in the State of Bihar by virtue of a notification issued under Sec.3 of the Bihar Land Reforms Act. The plaintiff prayed for issue of ad interim injunction restraining the appellant from carrying on the work of mining pending the final decision of the suit. It is stated that the villages concerned in respect of which the order of ad interim injunction was effective are Pundri, Bairi Tanr, Ambakola, Goriato, Kawabar and Pujari. The appellant appeared in Court after notices were duly served on all the defendants, who were 24 in number, on the 18th January, 1955, and filed a petition showing cause against the order of injunction. In spite of knowledge, therefore, of the order of restraint passed by the learned Subordinate Judge, the appellant continued the working of the mine as before which amounted to disobedience of the order of injunction and as such the appellant was liable to be dealt with in accordance with Order 39, Rule 2 (3 ). This was discovered when the Mining Officer Sri S. Sinha Choudhury visited village Pundri on the 1st February, 1955, and found two cart-loads of mica being transported from Pundri godown to Bhade Dih godown of the Mineral Development Limited, the appellant, under miners licence No.261 issued in favour of the Company. It is unnecessary to set out further facts about this matter as learned counsel for the appellant has not denied the factum of operation carried on in the mine at Pundri on the 5th of February, 1955, when the Mining Officer and the Inspector of Mica Accounts, Kodarma, visited the mine.
2. The defence urged on behalf of the appellant was that it was not the appellant which was engaged in carrying on mining operations which came to the notice of the Mining Officer, both on the 1st of February and the 5th of February, 1955, but it was one Ambika Prasad Singh in whose favour the lease was granted by an agreement, dated the 3rd of August, 1954, authorising him to carry on the mining operations at village Pundri and to certain other lessees in respect of other villages on different dates. The same having been done by agreement dated the 28th of October, 1954, thus, prior to the institution of the aforesaid title suit, and they not having been made parties to the suit, and the order of interim injunction not having been issued and served upon them, these grantees were not affected by the order. The appellant also not having disobeyed the order, it was not liable for disobedience of the order of ad interim injunction knowledge of which was not denied by the appellant. The learned Subordinate Judge, however, was informed by the learned counsel for the State of Bihar that so far as the removal of mica, from the mines in villages Bairi Tanr, Ambakola, Goriato, Kawabar and Pujari was concerned, there was no evidence in support thereof. The application was accordingly confined to the removal of mica only from village Pundri which was also the subject-matter of the suit which, as I have said above, was for a declaration that the conveyances, leases and sub-leases described in the various schedules were sham, colourable and farzi and did net pass any title to the transferees. In fact, all these properties we
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.