IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.9672 of 2010 BINOD KUMAR NOPANI S/O LATE M.L.NOPANI CHAIRMAN OF M/S EASTERN SUGAR AND INDUSTRIES LTD. (SRI HANUMAN SUGAR INDUSTRIES LTD.), COMMONLY KNOWN AS MOTIHARI CHINI UDYOG (BIHAR), HAVING ITS HEAD OFFICE AT 12 GOVERNMENT PLACE EAST, 2ND FLOOR, KOLKATA …. PETITIONER Versus 1. THE STATE OF BIHAR 2. THE DISTRICT CERTIFICATE OFFICER, MOTIHARI, AT, P.O. & P.S. MOTIHARI, DISTT.- EAST CHAMPARAN 3.CONTROLLING AUTHORITY/DEPUTY LABOUR COMMISSIONER, GOVT. OF BIHAR, MUZAFFARPUR, AT, P.O. & P.S. MUZAFFARPUR, DISTT.- MUZAFFARPUR 4. SRI RAM PRASAD SHARMA S/O LATE BANTI SHARMA R/O VILL.- BAGAHA BANKATWA, PURVI TOLA, P.O., P.S. BAGAHA, DISTT.- WEST CHAMPARAN …RESPONDENTS with CWJC No.9644 of 2010 BINOD KUMAR NOPANI S/O LATE M.L.NOPANI CHAIRMAN OF M/S EASTERN SUGAR AND INDUSTRIES LTD. (SRI HANUMAN SUGAR INDUSTRIES LTD.), COMMONLY KNOWN AS MOTIHARI CHINI UDYOG (BIHAR), HAVING ITS HEAD OFFICE AT 12 GOVERNMENT PLACE EAST, 2ND FLOOR, KOLKATA … PETITIONER Versus 1. THE STATE OF BIHAR 2. THE DISTRICT CERTIFICATE OFFICER, MOTIHARI, AT, P.O. & P.S. MOTIHARI, DISTT.- EAST CHAMPARAN 3.CONTROLLING AUTHORITY/DEPUTY LABOUR COMMISSIONER, GOVT. OF BIHAR, MUZAFFARPUR, AT, P.O. & P.S. MUZAFFARPUR, DISTT.- MUZAFFARPUR 4. SRI NAGESHWAR PRASAD ASTHANA S/O LATE RAMESHWAR PRASAD ASTHANA R/O VILL.- BELISARAI, MOTIHARI, NEAR PRADEEP HOTEL, P.O. P.S. MOTIHARI, DISTT.- MOTIHARI …RESPONDENTS with CWJC No.9698 of 2010 BINOD KUMAR NOPANI, S/O LATE M.L. NOPANI, CHAIRMAN OF M/S EASTERN SUGAR AND INDUSTRIES LTD. (SRI HANUMAN SUGAR INDUSTRIES LTD.) COMMONLY KNOWN AS MOTIHARI CHINI UDYOG (BIHAR), HAVING ITS HEAD OFFICE AT 12 GOVERNMENT PLACE EAST ,2ND FLOOR KOLKATA. … PETITIONER Versus 1. THE STATE OF BIHAR. 2. THE DISTRICT CERTIFICATE OFFICER, MOTIHARI, AT, P.O.& P.S. MOTIHARI, DISTRICT- EAST CHAMPARAN. - 2 - 3.CONTROLLING AUTHORITY/ DEPUTY LABOUR COMMISSIONER, GOVT. OF BIHAR, MUZAFFARPUR AT , P.O. & P.S. MUZAFFARPUR, DISTRICT- MUZAFFARPUR. 4. RAM PRATAP SINGH, S/O LATE RAMDAYAL SINGH, R/O VILLAGE CHATTU BARIYARPUR, P.O. & P.S. MOTIHARI, DISTRICT- MOTIHARI. … RESPONDENTS with CWJC No.9701 of 2010 BINOD KUMAR NOPANI, S/O M.L. NOPANI, CHAIRMAN OF M/S EASTERN SUGAR AND INDUSTRIES LTD. (SRI HANUMAN SUGAR INDUSTRIES LTD.) COMMONLY KNOWN AS MOTIHARI CHINI UDYOG (BIHAR), HAVING ITS HEAD OFFICE AT 12 GOVERNMENT PLACE EAST ,2ND FLOOR KOLKATA. … PETITIONER Versus 1. THE STATE OF BIHAR. 2. THE DISTRICT CERTIFICATE OFFICER,MOTIHARI,AT P.O. & P.S. MOTIHARI,DISTRICT- EAST CHAMPARAN. 3.CONTROLLING AUTHORITY/ DEPUTY LABOUR COMMISSIONER, GOVT. OF BIHAR, MUZAFFARPUR AT , P.O. & P.S. MUZAFFARPUR, DISTRICT- MUZAFFARPUR. 4. SRI HARI NARAYAN PRASAD, S/O LATE RAM GULAM PRASAD, R/O VILLAGE JIRAT,QUARTER MOTIHARI CHINI MILL, P.O. & P.S. BARIYARPUR, DISTRICT- EAST CHAMPARAN. … RESPONDENTS ----------- For the Petitioner : M/s Y. B. Giri, Sr. Advocate and Raju Giri, Vikas Ratan Bharti and Pranav Kumar, Advocates. For the State : Mrs. Shail Kumari, S.C. 15, Mr. Satyendra Kumar Jha, A.C. to G.A. 10 Mr. Vasant Vikas, A.C. to S.C. 15, Mr. Arbind Kr. Singh, A.C. to S.C. 26 Mr. Sushil Kumar Singh, A.C. to G.P. 1 For Respondent no.4: Mr. Nachiketa Jha, Advocate ---------- 07/ 21.06.2011 Heard learned counsel for the petitioner, who is the same in all the aforesaid four cases as well as heard learned counsel for respondents no. 1 to 3, who are common in all the four cases. Also heard learned counsel, who is appearing for respondent no.4 of all the four cases. 2. The aforesaid four writ petitions have been filed by - 3 - the petitioner challenging the entire proceedings of Certificate Case No. 04 of 2009-10; Certificate Case No. 02 of 2009-10; Certificate Case No. 01 of 2009-10; and Certificate Case No. 03 of 2009-10 as well as the orders passed therein including the orders for issuance of Distress Warrants passed by the District Certificate Officer, Motihari (East Champaran) against the petitioner. 3. Learned counsel for the petitioner, who is the same in all the four cases, submits that he is the Chairman of M/s Eastern Sugar & Industries Ltd. ( Sri Hanuman Sugar Industries Ltd.) commonly known as Motihari Chini Udyog (Bihar) having its Head Office at Kolkata and all the aforesaid four certificate proceedings had been initiated against him individually by the District Certificate Officer on the requisitions of the Controlling Authority/Deputy Labour Commissioner, Government of Bihar, Muzaffarpur. 4. Learned counsel for the petitioner further submits that the said proceedings have been initiated with respect to the payments to be made by the Company to its workers, hence the petitioner in his individual capacity cannot be held liable to make any such payment. In this connection, he relies upon three judgments of this Court, namely, (i) in case of Smt. Sarla Devi Agrawala vs. State of Bihar & Ors., reported in 1979 B.B.C.J. (DB) 213 (Ranchi Bench); (ii) in case of Damodar Prasad Nathani and another vrs. State of Bihar and others, reported in 1999(1) P.L.J.R. 522; and (iii) in case of Kanhaiya Lal vrs. State of Bihar and others, reported in 2002(2) P.L.J.R. (DB) 553. - 4 - 5. On the other hand, learned counsel for respondent- authorities as well as learned counsel for the private respondent no.4 in all the aforesaid writ petitions vehemently contest the contentions of the petitioner and aver that there are four workers of the Company and no gratuity was paid to them even after adopting all the legal procedures prescribed and hence the authorities concerned were constrained to recommend and initiate the said certificate proceedings against the petitioner for recovery of the amount payable. 6. From the facts and circumstances of the case as well as the materials on record and the admitted position, it is not in dispute that the four workers, who are respondent no.4 in the aforesaid writ petitions, were employees of the abovementioned Company, of which the petitioner was the Chairman. Hence the claim of the said workers with regard to the gratuity payment is upon the Company. 7. The law as per the aforesaid case laws of this Court, specially in the decision of a Division Bench of this Court in case of Smt. Sarla Devi (supra), has been well established that the Directors or the share holders of a Company are not liable for any legal liability incurred by such Company and the amount can only be realized by taking steps against the Company and assets thereof wherever it may be situated. 8. In the aforesaid facts and circumstances, the initiation of the aforesaid four proceedings against the petitioner cannot be legally upheld and hence the entire proceedings of the aforesaid four certificate cases along with the orders of issuance of - 5 - Distress Warrants passed therein against the petitioner are hereby quashed. 9. These writ petitions are, accordingly, allowed with a liberty to the respondents concerned to take any action or get any proceeding initiated against the Company for realization of the alleged dues in accordance with law. MPS/ (S.N.Hussain, J.)