1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR Contempt Petition No. 8/2011 In Writ Petition No. 1613/2010(D) In Writ Petition No. 3426/07(D) Central Railway Divisional Office, Employees Consumer Co-operative Society through Manager V/s. Mr. Kul Bhushan & 2 others. ........................................................................................................................................... Office Notes, Office Memoranda of Coram, appearances, Court's orders Court's or Judge's order of directions and Registrar's orders ........................................................................................................................................... Mr. A. M. Ghare, Advocate for Petitioner. Mr. R. S. Sundaram, Advocate for Respondent No.3. CORAM : R. K.DESHPANDE, J. DATE : 21st JULY, 2011. 1. In Writ Petition No. 3426/2007, decided by the Division Bench of this Court on 6th September 2007, challenge to the order- communication dated 5th July 2007, issued by the Divisional Railway Manager, Nagpur was not pressed. The contents of the said communication are reproduced below. “Sub : Closure of C. Rly. Divisional Office Employee's Consumer Co-operative Society, Nagpur. 2 The Competent Authority has decided to close the C. Rly. Divisional Office Employee's Consumer Co-operative Society, Nagpur with immediate effect. Accordingly, Divisional Registrar, Co-op. Society, Nagpur has been informed to take necessary action. In these circumstances, you are advised to stop all the activities which are run by the Society (i.e. sales, purchase, etc.) and also not to enter into any financial transactions with any party or bank till further orders. Any lapse in this matter on your part shall be viewed very seriously. Please acknowledge receipt. (A.K.Name) for DRM/Nagpur” 2. Another order dated 5th July 2007 passed by the Assistant Divisional Railway Manager, Nagpur pursuant to the aforesaid order has been set aside in the said writ petition by this Court along with all its necessary consequences. The contents of such order dated 5th July 2007, are reproduced below. 3 “ORDER Subject : Closure of C. Rly Divisional Office Employee's Consumer Co-operative Society, Nagpur. All concerned are hereby informed that the Competent Authority has decided to close Central Railway Divisional Office Employee's Consumer Co-operative Society, Nagpur with immediate effect. In view of this recovery of all share holders employees towards credit purchase of consumer goods etc. is being stopped from month of July 2007 onwards till further orders. In order to protect the interest of share-holders, the President, Secretary and Treasurer of this Society have been advised to stop the transaction of the Society and also not to enter into any financial transactions with any party or bank till further orders. In order to prevent any financial transactions by the management of the Society with banks, concerned banks are being informed to stop the withdrawals from Society's bank account. (K. P. Somkuwar) ADRM/Nagpur” 4 3. It appears that show cause notice dated 05/07/2007 was produced before this Court which was issued to the Managing Committee of the society and not to the Administrator of the Society. This Court recorded the statement of the Counsel appearing for the respondents that the show-cause notice will be addressed to the Administrator of the Society which shall be considered after passing the order. It was also the statement recorded that the amount already deducted by the respondents will be held in an account eventually for disbursement according to law. It was made clear that no other point was agitated at this stage. The petition was accordingly disposed of. 4. This Contempt Petition has been filed on 06/01/2011, alleging that the necessary consequences of setting aside the order dated 05/07/2007 by this Court in Writ Petition No. 3426/2007, was that the respondent were under obligation to continue the deductions of monthly installments of loan from the salary of the employees who were the members of the petitioner-society. However, the respondents have failed to continue the monthly deductions inspite of the Judgment of this Court delivered on 6th July 2007. According to the learned counsel Shri. Ghare appearing for the petitioner consequent to the decision in subsequent Writ Petition i.e. 1613/2011, the show cause notice issued to the Managing Committee of the Society also did not subsist and, therefore, it 5 was incumbent on the petitioner authorities to continue the deduction and deposit the amount so deducted in the petitioner-Society. 5. On 15th June 2011, this Court had heard this matter for quite some time and an order was passed which is reproduced below. “CORAM : R. K. DESHPANDE, J. DATE : 15th JUNE, 2011. After hearing the learned Counsels appearing for the parties for quite some time, Shri. R. G. Agrawal, the learned Counsel appearing for the respondents seeks time to take instructions from the respondents as to whether it is possible to deduct installments from the salary of the employees, in view of the Judgment and Order dated 6.9.2007 passed by this Court. Prima-facie it seems that the respondents are under obligation to start deduction of installments from the salary of the employees from the month of July, 2007 as this is the necessary consequence flowing from setting aside the order dated 5.7.2007. It is in the light of this position that the time is sought by Shri. Agrawal. The question whether the respondents should continue to deposit an 6 amount deducted from the salary of the employees with the petitioner society is altogether different and shall be considered at the appropriate stage. In view of above, put up this matter on 11.7.2011. Steno copy of the order be supplied to the parties. JUDGE” 6. In response to the aforesaid order, an affidavit has been filed by the respondent no. 1 to 3 on 16/07/2011. In para 8 of the affidavit reproduced below wherein the stand is taken by the respondents. “8. Without prejudice to the above contentions made and safeguarding the rights of the respondents, it is humbly submitted that by way of a precautionary measure, the deductions of the installments from the salary of the employees have been made by the railway administration even till recently and as such an amount of Rs. 8.5 lakhs approximately is withheld by the railways. It shall be pertinent to submit that in the month of September 2008, an amount of Rs. 3,50,000/- which was deducted from the salary of the employees who were the members of the 7 petitioner society, was remitted in the account of the society. That the petitioner instead of adjusting the said amount in the accounts of the respective employees/share-holders towards their dues outstanding had utilized the said amount for disbursement of salary of their staff. This itself is an act of misappropriation. This fact is clearly stated by the petitioner through its administrator vide their reply dated 18/12/2009 to the respondent authorities.” 7. This Contempt Petition can not proceed further. The complaint made in this Contempt Petition was also made in earlier Writ Petition No. 1613/2010 and the reliefs claimed therein is reproduced below. “A) Direct the Respondents to start the deduction of monthly installments from the salaries of the members of the petitioner society as per the demand made by the petitioner society and remit the amount to deducted to the petitioner forthwith; B) Take action under Article 215 of the Constitution of India against the Respondents for not complying and obeying with the judgment Dt. 06/09/2007 passed by this Hon'ble Court in W.P. 8 No. 3426/2007 thereby quashing the directions issued by Respondent No. 2 of stopping to make deduction of installment from the monthly salary of the members of the petitioner society; C) Direct the Respondents to remit an amount of Rs. 3,62,825/- (Rupees Three Lac Sixty Two thousand eight Hundred and Twenty Five Only) to the petitioner immediately with interest @ 18% per annum from the date of deduction of such amount till actual payment by Respondents to the petitioner society; D) Allow petition with costs; E) Any other relief which this Hon'ble Court may deems to be fit and proper in the facts and circumstances of the present case;” This Court has disposed of the said Writ Petition after recording the statement of the respondent-Railway Authority that the show cause notice which was addressed to the Managing Committee of the Society shall be addressed to the Administrator of the Society. None of the reliefs claimed were granted to the petitioners. No other point was pressed and the petition was disposed of. 9 8. The challenge to the order dated 05/07/2007 quoted in para 1 above, passed by the Divisional Railways Manager, Nagpur in Writ Petition No. 3426/2007, was not pressed. In view of this, there is nothing on record to suggest that any directions to deduct the installments from the monthly salary of the employees was either implicit or explicit in any of the order passed by this Court. In view of above, the proceedings are dropped. JUDGE Punde