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1966 Supreme(All) 168
ALLAHABAD HIGH COURT
GYANENDRA KUMAR, J.
Bhikharipur Co-operative Society Ltd., Fatehpur - Applicant
v.
The Assistant Registrar, Co-operative Societies Ltd., Fatehpur, - Opposite Party.
Criminal Misc. Contempt Appln. No. 24 of 1966
Decided on : 12 -10 -1966.
G.P. Dixit, for Applicant; C.S.P. Singh and Sushil Kumar, Asst. Govt. Advocate for respondent.
Headnote:
CONTEMPT OF COURT - U. P. Co-operative Societies Act, 1965 - Section 17 - Interference with the course of justice - Assistant Registrar, Co-operative Societies writing a letter to the directors of a society, alleging that its President and Manager-Secretary were in collusion and had embezzled a sum of Rs. 4,000/- and had thus allowed the Manager-Secretary to embezzle that amount - Held, the act and conduct of the Assistant Registrar had the clear tendency to interfere with the normal flow of the stream of justice in the pending suit before the Munsiff, Fatehpur.
Fact of the Case:
The petitioner-society filed a suit against Meoli Co-operative Society Ltd. for the realization of a loan of Rs. 4,000/- with interest. During the pendency of the suit, the respondent, Assistant Registrar, Co-operative Societies, wrote a letter to the directors of the petitioner-society, alleging that its President and Manager-Secretary were in collusion and had embezzled the loan amount. The petitioner-society alleged that the respondent's letter was an attempt to create prejudice in the minds of the directors and Secretary etc., with respect to the merits of the claim made by the petitioner in its civil suit and that it had further embarrassed the directors of the petitioner society from appearing as witnesses in the civil suit on behalf of the society.
Finding of the Court:
The court found that the respondent's letter had the clear tendency to interfere with the normal flow of the stream of justice in the pending suit before the Munsiff, Fatehpur. The court also found that the respondent had justified his conduct even in the counter affidavit filed in the court, without a word of regret or apology.
Issues: Whether the respondent's letter was an attempt to create prejudice in the minds of the directors and Secretary etc., with respect to the merits of the claim made by the petitioner in its civil suit.
Ratio Decidendi: The court held that the respondent's letter was an attempt to create prejudice in the minds of the directors and Secretary etc., with respect to the merits of the claim made by the petitioner in its civil suit. The court also held that the respondent's letter had the clear tendency to interfere with the normal flow of the stream of justice in the pending suit before the Munsiff, Fatehpur.
Final Decision: The court imposed a fine of Rs. 300/- on the respondent to be paid within a period of one month. In case of default, he shall undergo simple imprisonment for one month. He shall also pay a sum of Rs. 100/- by way of costs to the petitioner and a similar amount as costs to the Assistant Government Advocate, Shri N. C. Upadhya, within a period of one month.
This is an application by Bhikharipur Co-operative Society Ltd., district Fatehpur, through one of its directors, Radha Krishna Dubey, for proceedings for contempt of court against Surendra Singh, Assistant Registrar, Co-operative Societies, Fatehpur in the following circumstance:-
2. The petitioner-society mainly carries on the business of giving loans to its members and charges interest from them. The members of the society also deposit their monies and earn interest thereon. In 1965 one Sheo Sagar Sharma was the President of the society, while Subedar Tripathi was its Manager cum Secretary. The allegation of the petitioner is that on 16-07-1965, Lakshmi Narairi, the then President of Meoli Cooperative Society Ltd., district Fatehpur approached the petitioner-society for a loan of Rs. 4.000/. on behalf of Meoli Co-operative Society Ltd. It is again the case of the petitioner that on that date (16-07-1965) a loan of Rs. 4,000/- was advanced by the petitioner society to the Meoli Co-operative Society Ltd., through its President, Lakshmi Narain. The latter is alleged to have promised to return the amount with interest by September, 1965. He is further alleged to have executed a receipt for the aforesaid loan.
The case of the petitioner-society further is that Meoli Co-operative Society Ltd., failed to repay the amount of Rs. 4.000/. by September, 1965, as agreed. The result was that on 25-11-1965 the petitioner Society filed suit No. 423 of 1965 against Meoli Co-operative Society Ltd., in the court of the Munsif, Fatehpur for the realisation of the loan with interest. It may be mentioned here that before instituting the suit the matter had come up for consideration before the meeting of the board of directors held on 10-11-1965 wherein it was decided to institute a suit against Meoli Co-operative Society Ltd. and that the expenses of the suit will be borne by the petitioner society. It is alleged that the respondent on 17-1-1966, with full knowledge of the pendency of the petitioner's suit aforesaid addressed a letter to the board of directors and the petitioner-society alleging that its President, Sheo Sagar Sharma and its Manager-Secretary, Subedar Tripathi were in collusion with each other and in order to misappropriate a sum of Rs. 4,000/- had fictitiously shown an advance of loan of that amount to Meoli Co-operative Society Ltd., and had thus allowed Subedar Tripathi to embezzle that amount. A copy of the aforesaid letter was sent to all the directors by name and also to the Manager-Secretary as well as to the Deputy Registrar, Co-operative Societies, U. P., Allahabad. A copy of the letter is annexure 'S' to the counter affidavit of the respondent.
3. The argument advanced on behalf of the petitioner, therefore, is that by sending the aforesaid letter and its copies to various persons, the respondent had not only expressed his opinion about the transaction, which was the subject matter of the suit, but had also attempted, to create a prejudice in the mind of the directors and Secretary etc., with respect to the merits of the claim made by the petitioner in its civil suit against Meoli Co-operative Society Ltd., and that it had further embarrassed the directors of the petitioner society from appearing as witnesses in the civil suit on behalf of the society, particularly when the suit had been instituted at their instance, as resolved in their meeting dated 10-11-1965 On account of the above conduct of the respondent it was alleged that he had committed contempt of the court of the Munsif, Fatehpur where the suit of the petitioner society was then pending.
4. In his counter affidavit, the respondent has taken the plea that he and the Assistant Development Officer had already concluded the inquiry against the petitioner society and had come to the conclusion that a sum of Rs. 4,000/- had been embezzled by its Secretary, Subedar Tripathi and had therefore lodged a report with the Superintendent of Police on 29.11.1965, and
