Case: M/s. Ashok Paper Kamgar Union &amp; Others Vs. Dharam Godha ?&amp; Others

into between the petitioner, namely Ashok Paper Kamgar Union Government of Bihar and NCFL. The material on record shows that though several meetings were held, but for some reason or the order, the agreement could not fructify and could not be signed. Shri H.C. Sirohi, Labour Commissioner, Bihar, wrote a letter to the Secretary, Industrial Development Department, Government of Bihar on 29.1.1998 complaining that the behaviour of the President of the Petitioner Union had been non-cooperative on many occasions. He frequently tried to create hindrances and showed no interest to reach a settlement for tri-partite agreement. He sent another letter in this contention on 4.5.1998 reiterating that Shri Umadhar Prasad Singh, President of Ashok Paper Kamgar Union was creating hurdles in arriving at a tri-partite agreement. The Labour Commissioner also sent a report that his department had been receiving representations from Ashok Paper Mill Mazdoor Panchayat, which was the only recognised Union, about their claim. After considering the report of the Labour Commissioner, the Government of Bihar gave its no objection by its letter dated 14.7.1998 and thereafter the management entered into an agreement with the aforesaid recognized Union, namely, Ashok Paper Mill Mazdoor Panchayat. In paras 13 and 17 of the Contempt Petition, it is alleged that on account of keeping out of the Petitioner and its President (Shri Umadhar Prasad Singh) in the meetings of the Monitoring Committee and on account of their non-involvement in the opening and running of the unit, there has been a dis-obedience of the orders passed by this Court. The material on record shows that as Shri Umadhar Prasad Singh was not cooperating and was creating hindrance in arriving at a tri-partite agreement, the Labour Commissioner wrote to the Government of Bihar for signing of the agreement with Ashok Paper Mill Mazdoor Panchayat, which was a recognised Union. The Government of Bihar also gave its consent for the same. In these circumstances, the fact that the agreement was signed only with Ashok Paper Mill Mazdoor Panchayat cannot amount to wilful disobedience of the orders passed by this Court. 16. Under the Scheme which was formulated on 28.6.1996 and had been approved by this Court by the order dated 8.7.1996, NCFL had to pay a fixed consideration of Rs. 6 crores over a period of four years in 16 quarterly instalements of Rs. 37.5. lakhs each. the NCFL has no doubt default in payment of the aforesaid amount as it has paid only two instalments of Rs. 37.5 lakhs each. The IDBI has disbursed a term loan of Rs. 15 crores towards Phase I of the revival scheme. The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India in cooperating with Department of Banking was instrument in obtaining the sanction for additional term loan of Rs. 11 crores from IDBI and a working capital of Rs. 9.25 crores from United Bank of India. Therefore, so far as the IDBI and the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India are concerned, they have complied with the directions issued by this Court and have also taken all other steps which they were required to take for the revival of the unit. According to the affidavit filed by Shri Dharam Godha, NCFL has invested Rs. 18 crores towards promoter’s contribution which was much more than the amount contemplated in Phase I of the Scheme. It is also averred therein that for the loan of Rs. 15 crores given by IDBI, security of properties situate in Mumbai worth Rs. 10 crores, other than that of the mill, had been furnished by NCFL. Though the entire amount of consideration has not been paid by the NCFL but they claim to have made substantial investment for running of the unit.17. Section 2(b) of Contempt of Courts Act defines "civil contempt’ and it means willful disobedience to any judgment, decree, direction, order, writ or other process of a Court or willful breach of undertaking given to a Court. "Wilful’ means an act or omission which is done voluntarily and intentionally and with the specific intent to do something the law forbids or with the specific intent to fail to do something the law requires to be done, that is to say with bad purpose either to disobey or to disregard the law. It signifies a deliberate action done with evil intent or with a bad motive or purpose. Therefore, in order to constitute contempt the order of the Court must be of such a nature which is capable of execution by the person charged in normal circumstances. It should not require any extra ordinary effort nor should be dependent, either wholly or in part, upon any act or omission of a third party for its compliance. This has to be judged having regard to the facts and circumstances of each case. The facts mentioned above show that none of the respondents to the petition can be held to be directly responsible if the Scheme which had been formulated by Government of India on 28.6.1996 and had been approved by this Court by the order dated 8.7.1996 could not be implemented in letter and spirit as many factors have contributed to the same. The reasons given for non inclusion of Shri Umadhar Prasad Singh in signing of the agreement appear to be quite plausible. NCFL has undoubtedly not discharged its liability of making payment of its entire liability of Rs. 6 crores. However it has come out with a case that some additional expenditure has been incurred in running the unit. It is not possible to get the complete financial picture only on the basis of the affidavits filed in the present petition. On the material on record, therefore, it is not possible to hold that the charge of having committed contempt of Court on account of alleged non-compliance of the orders passed by this Court on 8.7.1996, 1.5.1997 and 31.7.2000 has been established against any one of the respondents.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]16. Under the Scheme which was formulated on 28.6.1996 and had been approved by this Court by the order dated 8.7.1996, NCFL had to pay a fixed consideration of Rs. 6 crores over a period of four years in 16 quarterly instalements of Rs. 37.5. lakhs each. the NCFL has no doubt default in payment of the aforesaid amount as it has paid only two instalments of Rs. 37.5 lakhs each. The IDBI has disbursed a term loan of Rs. 15 crores towards Phase I of the revival scheme. The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India in cooperating with Department of Banking was instrument in obtaining the sanction for additional term loan of Rs. 11 crores from IDBI and a working capital of Rs. 9.25 crores from United Bank of India. Therefore, so far as the IDBI and the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India are concerned, they have complied with the directions issued by this Court and have also taken all other steps which they were required to take for the revival of the unit. According to the affidavit filed by Shri Dharam Godha, NCFL has invested Rs. 18 crores towardscontribution which was much more than the amount contemplated in Phase I of the Scheme. It is also averred therein that for the loan of Rs. 15 crores given by IDBI, security of properties situate in Mumbai worth Rs. 10 crores, other than that of the mill, had been furnished by NCFL. Though the entire amount of consideration has not been paid by the NCFL but they claim to have made substantial investment for running of the unit.17. Section 2(b) of Contempt of Courts Act defines "civiland it means willful disobedience to any judgment, decree, direction, order, writ or other process of a Court or willful breach of undertaking given to a Court.means an act or omission which is done voluntarily and intentionally and with the specific intent to do something the law forbids or with the specific intent to fail to do something the law requires to be done, that is to say with bad purpose either to disobey or to disregard the law. It signifies a deliberate action done with evil intent or with a bad motive or purpose. Therefore, in order to constitute contempt the order of the Court must be of such a nature which is capable of execution by the person charged in normal circumstances. It should not require any extra ordinary effort nor should be dependent, either wholly or in part, upon any act or omission of a third party for its compliance. This has to be judged having regard to the facts and circumstances of each case. The facts mentioned above show that none of the respondents to the petition can be held to be directly responsible if the Scheme which had been formulated by Government of India on 28.6.1996 and had been approved by this Court by the order dated 8.7.1996 could not be implemented in letter and spirit as many factors have contributed to the same. The reasons given for non inclusion of Shri Umadhar Prasad Singh in signing of the agreement appear to be quite plausible. NCFL has undoubtedly not discharged its liability of making payment of its entire liability of Rs. 6 crores. However it has come out with a case that some additional expenditure has been incurred in running the unit. It is not possible to get the complete financial picture only on the basis of the affidavits filed in the present petition. On the material on record, therefore, it is not possible to hold that the charge of having committed contempt of Court on account of allegedof the orders passed by this Court on 8.7.1996, 1.5.1997 and 31.7.2000 has been established against any one of the respondents.