PRESIDENT, MOTIHARI CHINI UDYOG. Vs. STATE

JUDGEMENT

(1.) THIS disposes of suo -motu contempt proceeding initiated under Article 215 of the Constitution of India read with the provisions of the Contempt of Courts Act, 1971 (hereinafter referred to as the 'Act '), against Ram Krishna Pandey, Executive President, and M.P. Dhandhania, Director, both of Eastern Sugar Industries Limited (hereinafter referred to as the 'Company '), for the alleged refusal and/or failure on their part to carry out the undertakings to this Court.

(2.) THE circumstances leading to initiation of the present proceeding are indicated hereinafter. The Company had filed M.J.C. No. 3800 of 2000, inter -alia, with the prayer to permit payment of cane price to the cane growers for the period 1999 -2000 as per a convenient schedule submitted by them. The proposed schedule of payment was approved by order dated 5.1.2001, passed in the said M.J.C. No. 3800 of 2000, and is set out hereinbelow: Rs. in Lakhs Upto 28 February, 2001 : 20.00 "31st March, 2001 : 20.00 "30th April, 2001 : 20.00 "10th May, 2001 : 20.00 "30th June, 2001 : 20.00 "31st July, 2001 : 20.00 "31st August, 2001 : 20.00 "30th Sept. 2001 : 20.00 "30th Nov. 2001 : 20.00 "30th Dec. 2001 : the balance TOTAL 200.00 (2 crores approximate) The matter was again taken up on 21.6.2001, on which date the Company filed affidavit showing payment of instalments up to 31.7.2001. The remaining instalments were not paid upto July, 2003 in spite of repeated opportunities given to the Company. By order dated 21.7.2003, the company was granted four weeks ' time to file affidavit personally sworn by the General Manager of the Unit reporting compliance of the undertaking given to this Court. The Company deputed R.K. Pandey to appear in Court on 15.9.2003, but did not file the requisite affidavit. Therefore, contempt proceedings were initiated against the company and R.K. Pandey by order dated 15.9.2003, indicating the charge that "such action on the part of the petitioner company and its functionaries is prima - facie in disobedience of the order of this Court." He was on that date sent to civil prison. By order dated 17.9.2003, the Managing Director of the Company was directed to report compliance of the undertaking and be present in Court on 23.9.2003. B.K.Nopani, one of the Directors of the company filed affidavit in the capacity of Director in -charge of the Company so deputed, acknowledged the dues but did not appear in Court. The undertaking was not carried out. The contemners preferred M.A. No. 362 of 2003, M.A. No. 363 of 2003, and M.A. No. 368 of 2003 under Section 19(i) of the Act, inter alia, challenging initiation of the contempt proceeding and for allied reliefs. The same were disposed of by a Division Bench of this Court by order dated 26.9.2003, whereby bail was granted to R.K. Pandey on the condition that the arrears shall be deposited until the last working week of 2003 and for which one of the Directors shall stand surety before the Registrar General of the Court who, in his turn, was directed to submit report to this Court whether or not the Director has carried out the undertaking. M.P. Dhandhania, one of the Directors of the Company, accordingly submitted his undertaking and stood surety and, therefore, R.K. Pandey was released on bail on 27.9.2003.

(3.) AS directed by the Division Bench, the Registrar General has submitted his report dated 5.1.2004, wherein it is stated that M.P. Dhandhania has not carried out his undertaking and a sum of Rs. 31,82, 198.37 P. remains unpaid. Therefore, by order dated 7.1.2004, M.P. Dhandhania was also impleaded as a contemner, and further charge was framed to the effect that "M.P. Dhandhania is thus obviously in breach of his undertaking given to this Court". Both the contemners were, therefore, directed to submit their show -cause and be personally present in Court on 21.1.2004. The contemners submitted their show -cause, R.K. Pandey was present on 21.1.2004, but M.P. Dhandhania did not appear on that day. It was, inter alia, stated that sum of Rs. 14,48,227.83 P. has been disbursed to the cane growers between 8.1.2004 to 14.1.2004, a sum of Rs. 15,78,000/ - remains unpaid, and further stated that they were ready with the money and shall deposit with the Collector of the district. It was directed that the breach of the undertakings and disobedience of the orders of this Court shall be considered on 10.2.2004, and they may in the meanwhile deposit the balance outstanding amount with the Collector.