DR N G CHATTERJI Vs. EMPEROR

JUDGEMENT

(1.) This is an application in revision against an order of the learned Sessions Judge of Meerut by which he, in substance, affirmed the judgment of the learned Additional District Magistrate of Meerut. The facts in this case are highly complicated, but they have been presented before me with great lucidity by the learned Counsel for the parties. The story briefly is this : Dr. N.G. Chatterji and Mr. S.R. Chatterji are brothers. Mr. B. Mukerji is a cousin of theirs. Dr. N.G. Chatterji is the principal actor and for a proper and true appreciation of the case, it will be desirable to follow his career a little earlier than the stage which might be considered strictly necessary for following the prosecution story. He is a Doctor of Science of the Allahabad University and joined the Muir Central College in November 1919, as a Demonstrator. On 16 March 1921, he was taken over by the Department of Industries and appointed a Lecturer in the Cawnpore Harcourt Butler Technological Institute. In 1924 he was sent to Europe by the Government for some technical study, in which capacity he visited a number of places and made a special study of Power Alcohol Technology. He visited, among other places, England Holland, Germany, Czechoslovakia and Italy. In 1938 he was appointed by the Government, Member and Secretary of a Committee of Inquiry for finding out the possibility of producing alcohol in these Provinces. On the outbreak of the war, with the increase of pressure on petrol it was necessary to find some substitute for it and the Government requisitioned the services of Dr. Chatterji to explore the possibility of Power Alcohol as a substitute. His report was that it was possible to substitute Power Alcohol for petrol and the Government accepted his report, with the result that it passed an Act called the Power Alcohol Act, (Act 18 [XVIII] of 1940). In July 1941, he was appointed Technical Adviser to the Excise Commissioner. It might be mentioned that Mr. Bhadkamkar, I.C.S., held that office at that time. Power Alcohol was then a matter of private enterprise, but Dr. Chatterji thought that effective increase in the commodity could be secured only by its effective control and the Government was the only proper agency for it. It appears that the only firm which had the necessary plant for the manufacture of this commodity was the Central Distillery and Chemical Works, Ltd. at Meerut. On the report, mentioned above, Mr. Waugh, the War Production Commissioner, visited the Distillery. He agreed with Dr. Chatterji and decided that the control of that concern should be taken over by the Government. A notification, dated 27 March 1942, to this effect appeared in the U.P. Gazette. Dr. Chatterji was appointed its manager with a direction to see that the object of the Government, was fully carried out. The replacement of private enterprise by Government control was not received well by the vested interests. It appears, however, that there was no effective interference with the actual management which to all intents and purposes, remained unaffected. Things, however, took a more serious turn when on 10 April 1942 the Secretary of the Company had to leave and, on 29 April 1942, there was another notification in the Government Gazette authorising the Controller to remove the Managing Agents and Directors. On 5 May 1942 the Government granted a loan of Rs. 25,000 to the Distillery. On 7 May 1942 the Managing Agents were removed. These Managing Agents, who were three in number, were being paid RS. 500 a month and it is only natural that this order should have been the cause of deep resentment. But something happened later, which dealt even a more serious blow to the vested interests, with the result that, on 22 June, 1942 one of the Directors Sam Earnest Deva Lal submitted a complaint to His Excellency the Governor with serious allegations against Dr. Chatterji. The Governor, after enquiry replied to Mr. Deva Lal that the conduct of Dr. Chatterji was unexceptionable and he had in no way abused his position. Some retrenchments followed and one Mr. G.C. Mittra, an employee in the Distillery, was discharged from service.

(2.) Dr. Chatterji was, no doubt, a distinguished student of the University, but was not familiar with the particular trade or business. The storm of opposition consequent upon the steps taken by the Government, not unnaturally added to his troubles, as appears from his letters to the Excise Commissioner technically called the Authorised controller. The first is of 10 July 1942, which is unfortunately not exhibited, but which is amply proved by the materials on the record and the other of 20 June 1942, Ex. D-2. He consulted one Mr. Grant, belonging to one of the well-known commercial firms in these Provinces viz., Mrs. Begg Suterland & Co. as to the steps he should take not merely to secure his own position, but also to see that the business entrusted to him, did not suffer. Mr. Grant suggested it to him that, for the efficient prosecution of the business, particularly when he was being thwarted at every step by people, who thought they had a grievance against him, it was necessary that he should appoint to the key positions in the concern men, who enjoyed his implicit confidence. Not unnaturally Dr. Chatterji thought of his own relations on whom he could rely and from, whom he could expect real assistance. One such relation was his own brother, S.R. Chatterji, who was running a distillery in Rawalpindi. The other person he thought of was his cousin, Mr. B. Mukerji who was also engaged as a technical assistant. Mukerji was appointed on 8 May and Chatterji on 25 May 1942. It might be mentioned here that Dr. Chatterji introduced his brother and cousin not surreptitiously, but with the knowledge and consent of the then Excise Commissioner, Mr. Bhadkamkar. Indeed, Mr. Bhadkamkar passed an express order sanctioning the appointment of these relations.

(3.) On 25 May 1942, Mr. Bhadkamkar was succeeded by Mr. Shankar Prasad, I.C.S. Some correspondence followed between Mr. Shankar Prasad and his Personal Assistant, Mr. Sharif ullah Khan, on the one side, and Dr. Chatterji, on the other. One such is Ex. D-1. I have mentioned it because it bears out the case for the defence that Dr. Chatterji had taken this step with the knowledge and consent of the previous Excise Commissioner or the Authorised Controller. Mr. Shankar Prasad also approved the appointment as will appear from the exhibit to which I have just referred, viz., Ex. D-1, dated 14 June 1942. Curiously, however, on 8 July 1942 the Government sent a telegram, Ex. P-14, to Messrs. S.R. Chatterji and B. Mukerji terminating their services on a month's notice. The former, after the termination of his connexion with the Meerut Distillery, started business as a chemist and carried on miscellaneous business of a large variety, the principal of which were those of solidified fuel, spiced liquor, flavoured gin etc. etc. Mukerji had a manufacturing concern, Chemical Engineering Service Co., Meerut, and he resumed that business of his. Dr. Chatterji was directed to push up the Power Alcohol production and keep an eye on the finances of the Distillery, but this is important, not to embark upon new ventures.