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2006 Supreme(Mad) 1722
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P.K. MISRA & THE HONOURABLE MR. JUSTICE M. JAICHANDREN
B & C Mills Staff Union & Others - Appellant
Versus
K. Pandian & Others - Respondents
Contempt Petition No.500 of 2005 And Writ Petition No.25322 Of 2005 And WPMP.Nos.27725 & 31519 of 05 And WVMP.Nos.1940 & 2006 of 05
Decided On : 11 July 2006
The main legal point established in the judgment is the interpretation of the provisions of the Tamil Nadu Co-operative Societies Act, 1983, and the Tamil Nadu Co-operative Societies Rules, 1988, in relation to the recovery of dues, the authority to issue recovery notices, and the calculation of interest.
Headnote:
Contempt of Courts Act - Contempt Petition - Sections 10 & 12 - Summary of Acts and Sections: Contempt of Courts Act, 1971 - Sections 10, 12; Tamil Nadu Co-operative Societies Act, 1983 - Sections 48, 139, 140, 142; Tamil Nadu Co-operative Societies Rules, 1988 - Rule 69 - The judgment discusses the application of the Contempt of Courts Act, 1971, and the Tamil Nadu Co-operative Societies Act, 1983, particularly focusing on Sections 48, 139, 140, 142 and Rule 69 of the Tamil Nadu Co-operative Societies Rules, 1988. The court's decision was influenced by the interpretation of these provisions in relation to the recovery of dues and the power of the Deputy Registrar in issuing notices and initiating recovery proceedings.
Fact of the Case:
The case involved a contempt petition and a writ petition filed in relation to the recovery of dues from a Co-operative Society under liquidation. The contempt petition was filed against the Official Liquidator for not carrying out the directions of the Division Bench, and the writ petition challenged the notice issued by the Deputy Registrar of Co-operative Societies for recovery of dues.
Finding of the Court:
The court found that there was no wilful violation of the Division Bench's directions in the contempt petition, and therefore, it was closed. In the writ petition, the court considered the jurisdiction of the Deputy Registrar to issue the recovery notice and the calculation of interest, ultimately providing specific directions for the recovery process and the consideration of interest waiver by the Official Liquidator.
Issues: The issues included the jurisdiction of the Deputy Registrar to issue recovery notices, the calculation of interest, and the power of the Official Liquidator to consider interest waiver.
Ratio Decidendi: The court's decision was based on the interpretation of the relevant provisions of the Tamil Nadu Co-operative Societies Act, 1983, and the Tamil Nadu Co-operative Societies Rules, 1988, regarding the authority to issue recovery notices, the calculation of interest, and the power of the Official Liquidator to consider interest waiver.
Final Decision: The contempt petition was closed, and the writ petition was disposed of with specific directions for the recovery process and the consideration of interest waiver by the Official Liquidator.
(Contempt Petition has been filed under Sections 10 & 12 of the Contempt of Courts Act, 1971 to punish the respondent for having committed contempt to the order dated 15.9.2004 in WA.No.3392 of 2004.
Writ Petition has been filed under Article 226 of the Constitution of India for the issuance of writ of Certiorarified Mandamus calling for the records comprised in proceedings Liq.No.4/2004-2005/SF5 on the file of the Deputy Registrar of Co-operative Societies (Credit), Chennai 20 / first respondent dated 1.8.2005 and quash the same and consequently forebear the respondents from taking steps to recover any from the petitioner without passing order on the request of the petitioner seeking waiver of interest and one time settlement as sought for in their representation dated 3.2.2005 and 21.4.2005.)
P.K. Misra, J.
The facts and circumstances leading to filing of the contempt application and the writ petition are as follows :-
1.1 M/s. Binny Limited had filed W.P.No.14856 of 2003 challenging the orders passed by the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), Board of Industrial and Financial Reconstruction (BIFR) under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. Such writ petition was disposed of by directing the Board of Industrial and Financial Reconstruction to approve the scheme as envisaged in the order of the Madras High Court by its order dated 24.9.2003 and thereafter a formal order dated 22.10.2003 was passed by the BIFR.
1.2 W.P.No.12003 of 2004 was filed by the Union against the Registrar of Co-operative Societies and other officials as well as B & C Mills Employees Co-operative Society Ltd., for issuing a writ of mandamus directing the respondents 1 to 3 to recover the amount due from fourth respondent to third respondent, namely, B & C Mills Employees Co-operative Society Ltd. Such amount represented the amount recovered from the employees towards the dues of such B & C Mills Employees Co-operative Society Ltd, of which such employees were the members. Learned single Judge, however, by order dated 27.8.2004 observed that since there was no statutory right involved, the writ of mandamus was not maintainable and such writ petition was dismissed as not maintainable. B & C Mills Staff Union and Madras Labour Union filed W.A.No.3392 of 2004 against such order. In such writ appeal, the Division Bench observed, agreeing with the learned single Judge, that the Society was under liquidation and an Official Liquidator was appointed. The Division Bench observed :-
“3. In such circumstances, we only wish to add that the Official Liquidator concerned shall take all necessary steps to carry out his functions with reference to the third respondent-Society including the recovery of the dues concerned in this writ appeal and conclude the proceedings within six months from the date of receipt of a copy of this order without seeking for any further extension of time.
4. In the light of the above directions, we do not find any need or necessity to entertain this writ appeal. The writ appeal is therefore disposed of on the above terms....”
1.3. Contempt Petition No.500 of 2005 has been filed against the Official Liquidator on the ground that the observation made by the Division Bench has not been carried out and steps have not been taken by the Official Liquidator.
1.4. On receipt of notice in such contempt petition, the Deputy Registrar of Co-operative Societies (Credit) issued notice dated 1.8.2005. The notice is to the following effect :-
“... Take notice that already you have been issued two notices by liquidator appointed for the B & C Mills Employees Co-operative Society due to the B & C Mills Employees Co-operative Society (now under Liquidation) to the Liquidator before 18/2/2005 for making remittance of a sum of Rs.5,41,50,377/- due as on 31.12.2004 together with further interest from 1.1.2005 to till date of the payment by you.
It is regretted to note that inspit
