High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P. SATHASIVAM & THE HONOURABLE MR. JUSTICE J.A.K. SAMPATHKUMAR
Tamilnadu Mercantile Bank Ltd. - Appellant
Versus
B.Ramachandra Adityan & Others - Respondents
L.P.A.Nos.21 to 25 of 2005 and CMP.Nos.17710, 20372, 18032, 18033, 18040, 18042 of 2005, 1398 to 1402 of 2006 & VCMP.Nos.15 to 19 of 2006
Decided On : 20 March 2006
Contempt of Court - Violation of Court Order - Contempt of Courts Act, 1971 - [Tamilnad Mercantile Bank Shareholders Welfare Association] - [O.A.No.1016 of 2004 in C.S.No.981 of 2004] - [Section 10, Section 19] - The court found that the directions issued by the learned Judge in the contempt petition were not warranted and set aside the order dated 28.09.2005 made in Contempt Petition No.28 of 2005. Consequently, all the Letters Patent Appeals were allowed.
Fact of the Case:
Tamilnad Mercantile Bank Shareholders Welfare Association filed Contempt Petition No.28 of 2005 to punish the Chairman and Chief Executive Officer of Tamilnad Mercantile Bank for violating the court order dated 23.12.2004 made in O.A.No.1016 of 2004 in C.S.No.981 of 2004. The relief sought was to grant permanent injunction restraining the defendants from preventing the Members from participating and exercising their voting rights in the Annual General Meeting. The shareholders alleged that the order had been violated, and the Annual General Meeting was conducted in a one-sided manner.
Finding of the Court:
The court found that the directions issued by the learned Judge in the contempt petition were not warranted and set aside the order dated 28.09.2005 made in Contempt Petition No.28 of 2005. Consequently, all the Letters Patent Appeals were allowed.
Issues: The main issue was the violation of the court order dated 23.12.2004 and the conduct of the Annual General Meeting. Another issue was the maintainability of the Letters Patent Appeals filed against the order of the learned single Judge.
Ratio Decidendi: The court held that the directions issued by the learned Judge in the contempt petition were not warranted, particularly when the parties to be affected were not before him. The court also found that the Letters Patent Appeals were maintainable.
Final Decision: The court set aside the order dated 28.09.2005 made in Contempt Petition No.28 of 2005 and allowed all the Letters Patent Appeals.
(Letters Patent Appeals filed under Clause 15 of the Letters of Patent against the order of the learned Judge Mr. Justice S. Ashok Kumar dated 28.09.2005 made in Contempt Petition No.28 of 2005.)
Common Judgment: P. Sathasivam, J.
Since all the appeals arise out of the very same order of the learned single Judge, they are being disposed of by the following common judgement.
2. Questioning the order dated 28.09.2005 of the learned single Judge made in Contempt Petition No.28 of 2005, Tamilnad Mercantile Bank through its Chairman and Chief Executive Officer has filed LPA.No.21 of 2005. Questioning the same order, B. Ramachandra Adityan, Director of the Bank filed LPA.No.22 of 2005; and V. Baskaran, another Director filed LPA.No.23 of 2005. LPA.No.24 of 2005 is filed by one N. Balasubramaanian and LPA.No.25 of 2005 is filed by A. Narayanan, against the very same order of the learned Judge. In all these appeals Tamilnad Mercanti1e Bank Shareholders Welfare Association is the first respondent and the Bank is the second respondent. As said earlier, since all the appeals are filed against the order dated 28.09.2005 made in Contempt Petition No.28 of 2005, for convenience, we shall refer the facts and parties as mentioned in LPA.No.21 of 2005.
3. The first respondent herein, Tamilnad Mercantile Bank Shareholders Welfare Association filed Contempt Petition No.28 of 2005 to punish the respondent therein, viz., S. Radhakrishnan, Chairman and Chief Executive Officer, Tamilnad Mercantile Bank, Tuticorin for violating the order dated 23.12.2004 made in O.A.No.1016 of 2004 in C.S.No.981 of 2004. Tamilnad Mercantile Bank Shareholders Association is the plaintiff in C.S.No.981 of 2004 on the file of Original Side of this Court, wherein Reserve Bank of India, Chennai 600 001, N.S. Srinivasan, Director, RBI Nominee, Tamilnad Mercantile Bank Ltd. S. Swaminathan, Director, RBI Nominee, Tamilnad Mercantile Bank Ltd., S.T. Kannan, Director, RBI Nominee, Tamilnad Mercantile Bank Ltd., are the defendants.
4. The relief sought for in that suit is to grant permanent injunction restraining the defendants, their men or servants or any other person claiming under them from preventing the Members whose name is registered in the Register of Members of Tamilnad Mercanti1e Bank Ltd., or their duly authorised proxies lodged from participating and exercising their voting rights in the forthcoming Annual General Meeting dated 24.12.2004 or any subsequent date. The plaint is dated 21.12.2004. In that suit the plaintiff has also filed an interim application, viz., O.A.No.1016 of 2004, praying for an order of interim injunction on the same line. By order dated 23.12.2004, by consent of all the parties, the learned Judge passed the following order.
"5. ...... If any shareholder has executed a General Power of Attorney in favour of any particular person and such General Power of Attorney is duly registered and intimated to the bank as required under Article 85 of the Memorandum of Association of the Tamilnad Mercanti1e Bank Limited, such persons who satisfy the requirement of Article 85 of the Memorandum of Association will be permitted to vote in the place of the shareholder who has executed such Power of Attorney in favour of such person. Those shareholders who have not executed such General Power of Attorney, but whose names are found in the Register as Members of Tamilnad Mercanti1e Bank shall be permitted to vote and the respondents/defendants should not prevent them from exercising their franchise or participating in the Annual General Meeting.
6. However, in view of the disputes between the parties, the learned Principal District Judge, Tirunelveli is appointed as an Observer to observe the entire proceedings of the Annual General Meeting and file an independent report in a sealed cover before this Court.
7. The Annual General Meeting and other Agenda will go on according to the schedule in the presence of the Principal District Judge, Tirunelveli who sha
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