{"id":212747,"date":"2006-05-25T00:00:00","date_gmt":"2006-05-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/midnapore-peoples-co-op-bank-vs-chunilal-nanda-ors-on-25-may-2006"},"modified":"2016-06-24T23:49:23","modified_gmt":"2016-06-24T18:19:23","slug":"midnapore-peoples-co-op-bank-vs-chunilal-nanda-ors-on-25-may-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/midnapore-peoples-co-op-bank-vs-chunilal-nanda-ors-on-25-may-2006","title":{"rendered":"Midnapore Peoples&#8217; Co-Op. Bank &#8230; vs Chunilal Nanda &amp; Ors on 25 May, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Midnapore Peoples&#8217; Co-Op. Bank &#8230; vs Chunilal Nanda &amp; Ors on 25 May, 2006<\/div>\n<div class=\"doc_author\">Author: Raveendran<\/div>\n<div class=\"doc_bench\">Bench: B. P. Singh, R. V. Raveendran<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  1727 of 2002\n\nPETITIONER:\nMidnapore Peoples' Co-op. Bank Ltd. &amp; Ors.\t\n\nRESPONDENT:\nChunilal Nanda &amp; Ors.\t\t\t\t\t\n\nDATE OF JUDGMENT: 25\/05\/2006\n\nBENCH:\nB. P. Singh &amp; R. V. Raveendran\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<br \/>\nWith<\/p>\n<p>SLP (C) Nos. 13045-46\/2003<\/p>\n<p>RAVEENDRAN, J.\n<\/p>\n<p>This civil appeal by special leave is against the judgment dated<br \/>\n26.2.2001 in M.A.T. No.4075 of 1998 passed by the High Court of Calcutta.\n<\/p>\n<p>2.\tThe first respondent was working as Secretary of the Midnapore<br \/>\nPeoples&#8217; Co-op. Bank Ltd. [Appellant No.1 herein, for short the &#8216;Bank&#8217;].<br \/>\nAppellants 2 and 3 are respectively the Chairman and Secretary-in-Charge<br \/>\nof the first appellant bank. The first respondent was kept under suspension<br \/>\npending initiation of disciplinary proceedings, in pursuance of a resolution<br \/>\nof the Board of Directors of the Bank dated 16.4.1994.  The respondent filed<br \/>\na writ petition [C.O. No. 8789(W) of 1995] challenging the suspension, inter<br \/>\nalia  on the ground that charge-sheet had not been issued. On 27.6.1995, the<br \/>\nsaid writ petition was disposed of recording the submission that the bank<br \/>\nwas issuing a charge-sheet. The Bank was directed to deliver a copy of the<br \/>\ncharge-sheet and pay the arrears of subsistence allowance within one week.<br \/>\nThe first respondent was directed to file his written statement within 10<br \/>\ndays. The Enquiry Officer was directed to conclude the enquiry within a<br \/>\nperiod of three months from the date of communication of the order subject<br \/>\nto first respondent rendering full cooperation for the conduct of the<br \/>\ndisciplinary proceedings.\n<\/p>\n<p>3.\tA charge-sheet dated 1.7.1995 was issued to the first respondent<br \/>\ncontaining nine charges. The first Respondent filed his written statement on<br \/>\n17.7.1995. The Enquiry Officer completed the enquiry and submitted his<br \/>\nreport dated 14.9.1995 finding the first respondent guilty of all charges. A<br \/>\ncopy of the said report was furnished to the first respondent  under cover of<br \/>\nbank&#8217;s letter dated 25.9.1995 giving him an opportunity to submit his<br \/>\nrepresentation.\n<\/p>\n<p>4.\tAt that stage, the first respondent filed another writ petition [CO No.<br \/>\n20008 (W) of 1995]  before the High Court for quashing the enquiry<br \/>\nproceedings alleging bias against the Enquiry Officer (Asit Mahapatra). A<br \/>\nlearned single Judge of the Calcutta High Court allowed the said writ<br \/>\npetition by order dated 9.4.1997 in the following manner :\n<\/p>\n<p>(i)\tThe enquiry proceedings and the consequential action taken by<br \/>\nthe Bank were set aside.\n<\/p>\n<p>(ii)\tThe Chairman of the Bank was directed to appoint someone<br \/>\nwho is not a member of the Bank&#8217;s Board of Directors as<br \/>\nEnquiry Officer by requesting the Registrar, Cooperative<br \/>\nSocieties to nominate a suitable officer preferably of the rank of<br \/>\nAsst. Registrar of  Cooperative Societies, to be the Enquiry<br \/>\nOfficer. A time bound schedule was indicated for appointment<br \/>\nof the Enquiry Officer.\n<\/p>\n<p>(iii)\tThe Enquiry Officer to be so appointed was required to conduct<br \/>\nenquiry de novo by observing all the principles of natural<br \/>\njustice and the applicable rules and regulations and submit his<br \/>\nreport within four months from the date of first sitting subject to<br \/>\nfirst respondent fully cooperating in the enquiry. The<br \/>\nDisciplinary Authority was directed to take suitable action on<br \/>\nthe basis of such Report.\n<\/p>\n<p>(iv)\tThe Bank was directed to pay proper subsistence allowance to<br \/>\nthe first respondent during the period of suspension.\n<\/p>\n<p>5.\tOn the Bank&#8217;s request, the Assistant Registrar of Cooperative<br \/>\nSocieties, Midnapore-I appointed Sri H. K. Maiti, Cooperative<br \/>\nDevelopment Officer, as Enquiry Officer on 9.5.1997. Subsequently, the<br \/>\nAssistant Registrar by communication dated 3.10.1997 revoked the<br \/>\nappointment of Sri H.K. Maiti as Enquiry Officer being of the view that the<br \/>\ntenor of the order of the High Court did not permit the appointment of Sri<br \/>\nH.K. Maiti who was only a Development Officer, as the Enquiry Officer.<br \/>\nThereafter, the Bank wrote to the Registrar of Cooperative Societies on<br \/>\n24.10.1997 to nominate an officer of the rank of an Assistant Registrar for<br \/>\nbeing appointed as Enquiry Officer. In view of the delay, the Bank also<br \/>\napproached the High Court for suitable extension of time. On 19.12.1997,<br \/>\nthe court extended the time for appointment of Enquiry Officer by two<br \/>\nweeks. By order dated 5.1.1998, the Registrar nominated Sri S. K. Das,<br \/>\nAssistant Registrar of Co-operative Societies, Midnapore-I, for being<br \/>\nappointed as the Enquiry Officer. He was accordingly appointed as the<br \/>\nEnquiry Officer. He started a fresh enquiry.\n<\/p>\n<p>6.\tAs the enquiry was not completed within four months from the date of<br \/>\nfirst sitting, the first respondent moved a contempt application [CPAN 2233<br \/>\nof 1997]. The Chairman of the Bank, the Enquiry Officer (S. K. Das), the<br \/>\nprevious Enquiry Officer (Sri H. K. Maiti) and the Secretary-in-Charge of<br \/>\nthe Bank were impleaded eo nomine as respondents 1 to 4 in the said<br \/>\ncontempt petition. The learned Single Judge summoned the enquiry records<br \/>\nfrom the Enquiry Officer. On perusing the records, he was of the view that<br \/>\nthe Enquiry Officer had not proceeded with due diligence. Therefore, the<br \/>\nlearned Single Judge made an order dated 20.11.1998, the operative portion<br \/>\nof which is extracted below :\n<\/p>\n<p>&#8220;1.\tLet a Rule be issued against the respondent no.2 Sri S. K. Das,<br \/>\nAssistant Registrar, Cooperative Societies, Midnapore I, (charging him ?)<br \/>\nwith committing contempt of this Court (and ?) for directing him to show<br \/>\ncause as to why he should not be punished for committing contempt. The<br \/>\nRespondent no. 2 shall remain present personally on all the dates of<br \/>\nhearing in this Court. He shall file his affidavit in opposition within two<br \/>\nweeks from today.\n<\/p>\n<p>2.\tSince the respondent no. 2 has by his conduct, disqualified himself<br \/>\nto be the Enquiry Officer, I direct that he shall cease to be the Enquiry<br \/>\nOfficer. It shall be open to the respondents, however, in the light of the<br \/>\naforesaid two orders of the Court, to appoint any other person as the<br \/>\nEnquiry Officer and to proceed with the matter once again in the light of<br \/>\nthe aforesaid directions.\n<\/p>\n<p>3.\tThe petitioner shall immediately and forthwith be reinstated in the<br \/>\nservice of the respondent Bank and shall deemed to be in their service all<br \/>\nthrough. He shall not be prevented in any manner from discharging his<br \/>\nduties and shall be paid all arrears of salary within four weeks from today.\n<\/p>\n<p>Let the contempt application appear two weeks hence. The suspension<br \/>\norder shall be immediately deemed to have been revoked.&#8221;\n<\/p>\n<p>7.\tFeeling aggrieved, respondents 1 and 4 in the contempt petition<br \/>\n(Chairman and Secretary-in-Charge of the Bank) filed M.A.T. No.4075 of<br \/>\n1998. A Division Bench of the High Court dismissed the said appeal as not<br \/>\nmaintainable by the impugned judgment dated 26.2.2001, on the following<br \/>\ntwo grounds :\n<\/p>\n<p>(i)\tThe order of the learned Single Judge did not punish any<br \/>\ncontemnor. Therefore, the appeal could not be entertained under<br \/>\nsection 19 of the Contempt of Courts Act, 1971 which provided for<br \/>\nappeals only against orders punishing a contemnor.\n<\/p>\n<p>(ii)\tThe appeal did not satisfy the requirements of clause 15 of the<br \/>\nLetters Patent, and, therefore, could not be entertained as a Letters<br \/>\nPatent Appeal.\n<\/p>\n<p>While so dismissing the appeal, the Division Bench directed the appellants<br \/>\ntherein to forthwith implement the order of the learned Single Judge. The<br \/>\nsaid judgment is challenged in this civil appeal by special leave. This Court,<br \/>\nwhile granting leave on 25.2.2002, stayed the operation of the order dated<br \/>\n26.2.2001 in M.A.T. No.4075 of 1998, as also the further proceedings in the<br \/>\ncontempt petition (CPA No.2233\/1997) with a condition that the Enquiry<br \/>\nOfficer appointed in pursuance of the order dated 9.4.1997 shall complete<br \/>\nthe enquiry within six months.\n<\/p>\n<p>8.\tIn view of the observations of the Division Bench that the appeal by<br \/>\nthe Chairman and Secretary-in-Charge eo nomine was not maintainable,  and<br \/>\nto avoid any technical objections, the Bank and its Board of Directors filed<br \/>\nM.A.T. No.1102 of 2001 on 4.4.2001 challenging the order dated<br \/>\n20.11.1998 along with an application for condonation of delay. A Division<br \/>\nBench of the High Court dismissed the application for condonation of delay<br \/>\nby merely stating that the delay of 728 days had not been properly<br \/>\nexplained,  and consequently dismissed the appeal.  The said order<br \/>\ndismissing the application under section 5 of Limitation Act, 1963 and<br \/>\nconsequently, dismissing the appeal, is challenged in SLP(C) Nos.13045-46<br \/>\nof 2003.\n<\/p>\n<p>9.\tOn the aforesaid facts and the contentions urged, the following<br \/>\nquestions arise for consideration :\n<\/p>\n<p>(i)\tWhere the High Court, in a contempt proceedings, renders a<br \/>\ndecision on the merits of a dispute between the parties, either by an<br \/>\ninterlocutory order or final judgment, whether it is appealable<br \/>\nunder section 19 of the Contempt of Courts Act, 1971 ? If not,<br \/>\nwhat is the remedy of the person aggrieved ?\n<\/p>\n<p>(ii)\tWhere such a decision on merits, is rendered by an interlocutory<br \/>\norder of a learned Single Judge, whether an intra-court appeal is<br \/>\navailable under clause 15 of the Letters Patent ?\n<\/p>\n<p>(iii)\tIn a contempt proceeding initiated by a delinquent employee<br \/>\n(against the Enquiry Officer as also  the Chairman and Secretary<br \/>\nin-charge of the employer-Bank), complaining of disobedience of<br \/>\nan order directing completion of the enquiry in a time bound<br \/>\nschedule, whether the court can direct (a) that the employer shall<br \/>\nreinstate the employee forthwith; (b) that the employee shall not be<br \/>\nprevented from discharging his duties in any manner; (c) that the<br \/>\nemployee shall be paid all arrears of salary; (d) that the Enquiry<br \/>\nOfficer shall cease to be the Enquiry Officer and the employer<br \/>\nshall appoint a fresh Enquiry Officer; and (e) that the suspension<br \/>\nshall be deemed to have been revoked ?\n<\/p>\n<p>Re : Point No. (i) :\n<\/p>\n<p>10.\tSection 19 of the Contempt of Courts Act, 1971 [&#8216;CC Act&#8217; for short]<br \/>\nprovides for appeals. Relevant portion of sub-section (1) thereof is extracted<br \/>\nbelow :\n<\/p>\n<p>(1) An appeal shall lie as of right from any order or decision of High Court<br \/>\nin the exercise of its jurisdiction to punish for contempt &#8211;\n<\/p>\n<p>(a)\twhere the order or decision is that of a single Judge,<br \/>\nto a Bench of not less than two Judges of the Court:\n<\/p>\n<p>(b)       where the order or decision is that of a Bench, to the<br \/>\nSupreme Court:\n<\/p>\n<p>The scope of Section 19 has been considered by this Court in <a href=\"\/doc\/378445\/\">Baradakanta<br \/>\nMishra v. Justice Gatikrushna Misra<\/a> [AIR 1974 SC 2255], Purushotam<br \/>\nDass Goel v. Justice B.S. Dhillon [AIR 1978 SC 1014], Union of India v.<br \/>\nMario Cabral e Sa [AIR 1982 SC 691], <a href=\"\/doc\/1473374\/\">D.N. Taneja v. Bhajan Lal<\/a> [1988 (3)<br \/>\nSCC 26], <a href=\"\/doc\/1783340\/\">State of Maharashtra v. Mahboob S. Allibhoy<\/a> [1996 (4) SCC 411]<br \/>\nand <a href=\"\/doc\/1358508\/\">J.S. Parihar v. Ganpat Duggar<\/a> [1996 (6) SCC 291]. These cases dealt<br \/>\nwith orders refusing to initiate contempt proceedings or initiating contempt<br \/>\nproceedings or acquitting\/exonerating the contemnor or dropping the<br \/>\nproceedings for contempt. In all these cases, it was held that an appeal was<br \/>\nnot maintainable under section 19 of CC Act as the said Section only<br \/>\nprovided for an appeal in respect of orders punishing for contempt.\n<\/p>\n<p>10.1)\t  In Baradakanta Mishra, a three Judge Bench of this Court held that<br \/>\nan order declining to initiate a proceeding for contempt amounts to refusal to<br \/>\nassume or exercise jurisdiction to punish for contempt and therefore, such a<br \/>\ndecision cannot be regarded as a decision in the exercise of its jurisdiction to<br \/>\npunish for contempt. The question as to whether an appeal would be<br \/>\nmaintainable under section 19 where the court initiates a proceeding for<br \/>\ncontempt but after due consideration and hearing finds the alleged<br \/>\ncontemnor not guilty of contempt, or having found him guilty declines to<br \/>\npunish him, was left open.\n<\/p>\n<p>10.2)\tIn Purushotam Dass Goel (supra), certain aspects of Section 19 were<br \/>\nleft open. This relevant portion is extracted below :<br \/>\nThe (contempt) proceeding is initiated under Section 17 by issuance of a<br \/>\nnotice. Thereafter, there may be many interlocutory orders passed in the<br \/>\nsaid proceeding by the High Court. It could not be the intention of the<br \/>\nlegislature to provide for an appeal to this Court as a matter of right from<br \/>\neach and every such order made by the High Court. The order or the<br \/>\ndecision must be such that it decides some bone of contention raised<br \/>\nbefore the High Court affecting the right of the party aggrieved. Mere<br \/>\ninitiation of a proceeding for contempt by the issuance of the notice on the<br \/>\nprima facie view that the case is a fit one for drawing up the proceeding,<br \/>\ndoes not decide any question&#8230; It is neither possible, nor advisable,<br \/>\nto make an exhaustive list of the type of orders which may be appealable<br \/>\nto this Court under Section 19. A final order, surely, will be appealable.\n<\/p>\n<p>If the alleged contemnor in response to the notice appears before the High<br \/>\nCourt and asks it to drop the proceeding on the ground of its being barred<br \/>\nunder Section 20 of the Act but the High Court holds that the proceeding<br \/>\nis not barred, it may well be that an appeal would lie to this Court under<br \/>\nSection 19 from such an order although the proceeding has remained<br \/>\npending in the High Court. We are not called upon to express our final<br \/>\nopinion in regard to such an order, but we merely mention this type of<br \/>\norder by way of an example to show that even orders made at some<br \/>\nintermediate stage in the proceeding may be appealable under Section 19.&#8221;\n<\/p>\n<p>10.3)\tWhile Baradakanda Mishra and Purushotam Das left open the<br \/>\nquestion whether an appeal under section 19 would be maintainable in<br \/>\ncertain areas, in D. N. Taneja (supra), a three-Judge Bench of this Court,<br \/>\ncategorically held that appeals under section 19 would lie only against the<br \/>\norders punishing the contemnor for contempt and not any other order passed<br \/>\nin contempt proceedings. We extract below the relevant portions from the<br \/>\nsaid decision :\n<\/p>\n<p> &#8220;The right of appeal will be available under sub-section (1) of Section 19<br \/>\nonly against any decision or order of a High Court passed in the exercise<br \/>\nof its jurisdiction to punish for contempt. When the High Court<br \/>\ndoes not impose any punishment on the alleged contemnor, the High Court<br \/>\ndoes not exercise its jurisdiction or power to punish for contempt. The<br \/>\njurisdiction of the High Court is to punish. When no punishment is<br \/>\nimposed by the High Court, it is difficult to say that the High Court<br \/>\nhas exercised its jurisdiction or power as conferred on it by Article<br \/>\n215 of the Constitution.\n<\/p>\n<p>It is true that in considering a question whether the alleged contemnor is<br \/>\nguilty of contempt or not, the court hears the parties and considers the<br \/>\nmaterials produced before it and, if necessary, examines witnesses and,<br \/>\nthereafter, passes an order either acquitting or punishing him for contempt.<br \/>\nWhen the High Court acquits the contemnor, the High Court does not<br \/>\nexercise its jurisdiction for contempt, for such exercise will mean that the<br \/>\nHigh Court should act in a particular manner, that is to say, by imposing<br \/>\npunishment for contempt. So long as no punishment is imposed by the<br \/>\nHigh Court, the High Court cannot be said to be exercising its jurisdiction<br \/>\nor power to punish for contempt under Article 215 of the Constitution.<br \/>\nThe aggrieved party under section 19(1) can only be the contemnor who<br \/>\nhas been punished for contempt of court.&#8221;\n<\/p>\n<p>[Emphasis supplied]<\/p>\n<p>10.4)\tIn Mahboob S. Allibhoy (supra), this Court reiterated the above<br \/>\nposition thus :\n<\/p>\n<p>&#8220;On a plain reading Section 19 provides that an appeal shall lie as of right<br \/>\nfrom any order or decision of the High Court in exercise of its jurisdiction<br \/>\nto punish for contempt. In other words, if the High Court passes an order<br \/>\nin exercise of its jurisdiction to punish any person for contempt of court,<br \/>\nthen only an appeal shall be maintainable under sub-section (1) of Section<br \/>\n19 of the Act. As sub-section (1) of Section 19 provides that an appeal<br \/>\nshall lie as of right from any order, an impression is created that an appeal<br \/>\nhas been provided under the said sub-section against any order passed by<br \/>\nthe High Court while exercising the jurisdiction of contempt proceedings.<br \/>\nThe words &#8216;any order&#8217; has to be read with the expression &#8216;decision&#8217; used in<br \/>\nsaid sub-section which the High Court passes in exercise of its jurisdiction<br \/>\nto punish for contempt. &#8216;Any order&#8217; is not independent of the expression<br \/>\n&#8216;decision&#8217;. They have been put in an alternative form saying &#8216;order&#8217; or<br \/>\n&#8216;decision&#8217;. In either case, it must be in the nature of punishment for<br \/>\ncontempt. If the expression &#8216;any order&#8217; is read independently of the<br \/>\n&#8220;decision&#8221; then an appeal shall lie under sub-section (I) of Section 19 even<br \/>\nagainst any interlocutory order passed in a proceeding for contempt by the<br \/>\nHigh Court which shall lead to a ridiculous result.&#8221;\n<\/p>\n<p>10.5)\t<a href=\"\/doc\/1358508\/\">J. S. Parihar vs. Ganpat Duggar<\/a> (supra) is nearest to this case, on<br \/>\nfacts. A contempt petition was filed alleging that the seniority list drawn<br \/>\npursuant to the order of the High Court was not in conformity with the said<br \/>\norder. The High Court found it to be so, but held that the disobedience  was<br \/>\nnot willful and, therefore, did not punish for contempt. But the High Court<br \/>\ngave a direction to redraw the seniority list. The State Government<br \/>\nchallenged the said direction in an intra court appeal. The Division Bench<br \/>\nheld that the appeal was not maintainable under section 19 of the CC Act,<br \/>\nbut was maintainable as an intra-court appeal as the direction issued by the<br \/>\nsingle Judge would be a &#8220;judgment&#8221; within the meaning of  that expression<br \/>\nin section 18 of Rajasthan High Court Ordinance. Accordingly, the Division<br \/>\nBench set aside the direction of the learned Single Judge  to re-do the list.<br \/>\nThe said order was challenged before this Court. This Court confirmed the<br \/>\ndecision of the Division Bench and held as follows :<br \/>\n&#8220;Therefore, an appeal would lie under section 19 when an order in<br \/>\nexercise of the jurisdiction of the High Court punishing the contemnor has<br \/>\nbeen passed. In this case, the finding was that the respondents had not<br \/>\nwilfully disobeyed the order. So there is no order punishing the respondent<br \/>\nfor violation of the orders of the High Court. Accordingly, an appeal under<br \/>\nsection 19 would not lie.\n<\/p>\n<p>The question is whether seniority list is open to review in the contempt<br \/>\nproceedings to find out, whether it is in conformity with-the directions<br \/>\nissued by the earlier Benches. It is seen that once there is an order passed<br \/>\nby the Government on the basis of the directions issued by the Court, there<br \/>\narises a fresh cause of act on to seek redressal in an appropriate forum.<br \/>\nThe preparation of the seniority list may be wrong or may be right or may<br \/>\nor may not be in conformity with the directions. But that would be a fresh<br \/>\ncause of action for the aggrieved party to avail of the opportunity of<br \/>\njudicial review. But that cannot be considered to be the wilful violation of<br \/>\nthe order. After re-exercising the judicial review in contempt proceedings,<br \/>\na fresh direction by the learned single Judge cannot be given to redraw the<br \/>\nseniority list. In other words, the learned Judge was exercising the<br \/>\njurisdiction to consider the matter on merits in the contempt proceedings.<br \/>\nIt would not be permissible .&#8221;\n<\/p>\n<p>11.\tThe position emerging from these decisions, in regard to appeals<br \/>\nagainst orders in contempt proceedings may be summarized thus :<br \/>\nI.\tAn appeal under section 19 is maintainable only against<br \/>\nan order or decision of the High Court passed in exercise of its<br \/>\njurisdiction to punish for contempt, that is, an order imposing<br \/>\npunishment for contempt.\n<\/p>\n<p>II.\tNeither an order declining to initiate proceedings for<br \/>\ncontempt, nor an order initiating proceedings for contempt nor<br \/>\nan order dropping the proceedings for contempt nor an order<br \/>\nacquitting or exonerating the contemnor, is appealable under<br \/>\nSection 19 of the CC Act. In special circumstances, they may<br \/>\nbe open to challenge under Article 136 of the Constitution.<br \/>\nIII.\tIn a proceeding for contempt, the High Court can decide<br \/>\nwhether any contempt of court has been committed, and if so,<br \/>\nwhat should be the punishment and matters incidental thereto.<br \/>\nIn such a proceeding, it is not appropriate to adjudicate or<br \/>\ndecide any issue relating to the merits of the dispute between<br \/>\nthe parties.\n<\/p>\n<p>IV. \tAny direction issued or decision made by the High Court<br \/>\non the merits of a dispute between the parties, will not be in the<br \/>\nexercise of &#8216;jurisdiction to punish for contempt&#8217; and therefore,<br \/>\nnot appealable under section 19 of CC Act. The only exception<br \/>\nis where such direction or decision is incidental to or<br \/>\ninextricably connected with the order punishing for contempt,<br \/>\nin which event the appeal under section 19 of the Act, can also<br \/>\nencompass the incidental or inextricably connected directions.<br \/>\nV.\tIf the High Court, for whatsoever reason, decides an<br \/>\nissue or makes any direction, relating to the merits of the<br \/>\ndispute between the parties, in a contempt proceedings, the<br \/>\naggrieved person is not without remedy. Such an order is open<br \/>\nto challenge in an intra-court appeal (if the order was of a<br \/>\nlearned Single Judge and there is a provision for an intra-court<br \/>\nappeal), or by seeking special leave to appeal under Article 136<br \/>\nof the Constitution of India (in other cases).\n<\/p>\n<p>The first point is answered accordingly.\n<\/p>\n<p>Re : Point No. (ii) :\n<\/p>\n<p>12.\tWe will next consider as to whether an intra-court appeal under<br \/>\nclause 15 of the Letters Patent was available against the interlocutory<br \/>\norder dated 20.11.1998 containing the directions on merits of the<br \/>\ndispute. Clause 15 of the Letters Patent provides for an appeal from a<br \/>\n&#8216;judgment&#8217; of a single Judge in exercise of original jurisdiction, to a<br \/>\n<a href=\"\/doc\/1820934\/\">Division Bench. In Shah Babulal Khimji v. Jayaben D. Kania &amp; Anr.<\/a><br \/>\n[AIR 1981 SC 1786], the scope of clause 15 of the Letters Patent was<br \/>\nconsidered. This Court held :\n<\/p>\n<p>&#8220;The concept of a judgment as defined by the Code of Civil<br \/>\nProcedure seems to be rather narrow and the limitations engrafted<br \/>\nby sub-section (2) of section 2 cannot be physically imported into<br \/>\nthe definition of the word &#8216;judgment&#8217; as used in Cl. 15 of the<br \/>\nLetters Patent because the Letters Patent has advisedly not used the<br \/>\nterm &#8216;order&#8217; or &#8216;decree&#8217; anywhere. The intention, therefore, of the<br \/>\ngivers of the Letters Patent was that the word &#8216;judgment&#8217; should<br \/>\nreceive a much wider and more liberal interpretation than the word<br \/>\n&#8216;judgment&#8217; used in the Code of Civil Procedure. At the same time,<br \/>\nit cannot be said that any order passed by a trial Judge would<br \/>\namount to a judgment; otherwise there will be no end to the<br \/>\nnumber of orders which would be appealable under the Letters<br \/>\nPatent. It seems to us that the word &#8216;judgment&#8217; has undoubtedly a<br \/>\nconcept of finality in a broader and not a narrower sense. In other<br \/>\nwords, a judgment can be of three kinds  (1) A final Judgment<br \/>\n.. (2) A preliminary Judgment .. (3) Intermediary or<br \/>\ninterlocutory judgment  &#8211; Most of the interlocutory orders which<br \/>\ncontain the quality of finality are clearly specified in clauses (a) to<br \/>\n(w) of Order 43, Rule 1 and have already been held by us to be<br \/>\njudgments within the meaning of the Letters Patent and, therefore,<br \/>\nappealable. There may also be interlocutory orders which are not<br \/>\ncovered by Order 43, Rule 1 but which also possess the<br \/>\ncharacteristics and trappings of finality in that, the orders may<br \/>\nadversely affect a valuable right of the party or decide an important<br \/>\naspect of the trial in an ancillary proceedings. Before such an order<br \/>\ncan be a judgment the adverse effect on the party concerned must<br \/>\nbe direct and immediate rather than indirect or remote<br \/>\nin other words every interlocutory order cannot be regarded as a<br \/>\njudgment but only those orders would be judgments which decide<br \/>\nmatters of moment or affect vital and valuable rights of the parties<br \/>\nand which work serious injustice to the party concerned.&#8221;<br \/>\n&#8220;.any discretion exercised or routine orders passed by the<br \/>\ntrial Judge in the course of the suit which may cause some<br \/>\ninconvenience or, to some extent, prejudice one party or the other<br \/>\ncannot be treated as a judgment, otherwise the appellate court<br \/>\n(Division Bench) will be flooded with appeals from all kinds of<br \/>\norders passed by the trial Judge. .. the interlocutory<br \/>\norder in order to be a judgment must contain the traits and<br \/>\ntrappings of finality either when the order decides the questions in<br \/>\ncontroversy in an ancillary proceeding or in the suit itself or in a<br \/>\npart of the proceedings.&#8221;\n<\/p>\n<p>14.\tClause 10 of the Letters Patent of Patna High Court<br \/>\n(corresponding to clause 15 of Letters Patent of Calcutta High Court)<br \/>\nwas considered by this Court in Central Mine Planning and Design<br \/>\nInstitute Ltd. v. Union of India [2001 (2) SCC 588]. In that case, the<br \/>\naward of an Industrial Tribunal directing reinstatement and payment<br \/>\nof partial backwages was challenged in a writ petition before the High<br \/>\nCourt of Patna. The workman claimed interim relief under section 17-<br \/>\nB of the Industrial Disputes Act, 1947. The learned Single Judge<br \/>\ndirected the employer to pay full wages to the workman during the<br \/>\npendency of the writ petition. That was challenged in a Letters Patent<br \/>\nAppeal. The Division Bench held that the Letters Patent Appeal was<br \/>\nnot maintainable as the order directing payment under section 17-B of<br \/>\nthe I.D. Act was not a &#8216;judgment&#8217;. Reversing  the said decision, this<br \/>\nCourt held that an interlocutory order passed in a writ proceeding<br \/>\ndirecting payment under section 17B of Industrial Disputes Act, 1947<br \/>\nwas a final determination affecting the vital and valuable rights and<br \/>\nobligations of parties and, therefore, would fall under the category of<br \/>\n&#8216;intermediary or interlocutory judgment&#8217; against which a Letters<br \/>\nPatent Appeal would lie. The following observations are relevant :<br \/>\n&#8220;It is now well settled that the definition of &#8220;judgment&#8221; in section<br \/>\n2(9) of the Code of Civil Procedure has no application to Letters<br \/>\nPatent  .., it follows that to determine the<br \/>\nquestion whether an interlocutory order passed by one Judge of a<br \/>\nHigh Court falls within the meaning of &#8216;judgment&#8217; for purposes of<br \/>\nLetters Patent the test is : Whether the order is a final<br \/>\ndetermination affecting vital and valuable rights and obligations of<br \/>\nthe parties concerned. This has to be ascertained on the facts of<br \/>\neach case.&#8221;\n<\/p>\n<p>15.\tThe above principle was reiterated in <a href=\"\/doc\/1588598\/\">Mithailal Dalsangar<br \/>\nSingh vs. Annabai Devram Kini<\/a> [2003 (10) SCC 691] and <a href=\"\/doc\/1737232\/\">Subal Paul<br \/>\nvs. Malina Paul<\/a> [2003 (10) SCC 361]. In the latter case, this Court<br \/>\nheld :\n<\/p>\n<p>&#8220;While determining the question as regards clause 15 of the Letters Patent,<br \/>\nthe court is required to see as to whether the order sought to be appealed<br \/>\nagainst is a judgment within the meaning thereof or not. Once it is held<br \/>\nthat irrespective of the nature of the order, meaning thereby whether<br \/>\ninterlocutory or final, a judgment has been rendered, clause 15 of the<br \/>\nLetters Patent would be attracted.  Clause 15 of the Letters Patent<br \/>\nconfers a right of appeal on a litigant against any judgment passed under<br \/>\nany Act unless the same is expressly excluded. Clause 15 may be subject<br \/>\nto an Act but when it is not so subject to the special provision the power<br \/>\nand jurisdiction of the High Court under clause 15 to entertain any appeal<br \/>\nfrom a judgment would be effective.&#8221;\n<\/p>\n<p>16.\tInterim orders\/interlocutory orders passed during the pendency<br \/>\nof a case, fall under one or the other of the following categories :\n<\/p>\n<p>(i)\tOrders which finally decide a question or issue in<br \/>\ncontroversy in the main case.\n<\/p>\n<p>(ii)   Orders which finally decide an issue which materially and<br \/>\ndirectly affects the final decision in the main case.\n<\/p>\n<p>(iii)  Orders which finally decide a collateral issue or question<br \/>\nwhich is not the subject matter of the main case.\n<\/p>\n<p>(iv)    Routine orders which are passed to facilitate the progress of<br \/>\nthe case till its culmination in the final judgment.\n<\/p>\n<p>(v)  Orders which may cause some inconvenience or some<br \/>\nprejudice to a party, but which do not finally determine the<br \/>\nrights and obligations of the parties.\n<\/p>\n<p>The term &#8216;judgment&#8217; occurring in clause 15 of the Letters Patent will<br \/>\ntake into its fold not only the judgments as defined in section 2(9)<br \/>\nCPC and orders enumerated in Order 43 Rule 1 of CPC, but also other<br \/>\norders which, though may not finally and conclusively determine the<br \/>\nrights of parties with regard to all or any matters in controversy, may<br \/>\nhave finality in regard to some collateral matter, which will affect the<br \/>\nvital and valuable rights and obligations of the parties. Interlocutory<br \/>\norders which fall under categories (i) to (iii) above, are, therefore,<br \/>\n&#8216;judgments&#8217; for the purpose of filing appeals under the Letters Patent.<br \/>\nOn the other hand, orders falling under categories (iv) and (v) are not<br \/>\n&#8216;judgments&#8217; for purpose of filing appeals provided under the Letters<br \/>\nPatent.\n<\/p>\n<p>17.\tThe next question is whether the appeal was not maintainable<br \/>\nbecause, it was filed by the Chairman and the Secretary-in-Charge of<br \/>\nthe Bank eo nomine, and not by the &#8220;Bank&#8221; itself. The order dated<br \/>\n20.11.1998 against which the appeal was filed, was passed by the<br \/>\nlearned single Judge in the course of contempt proceedings. The<br \/>\nChairman and the Secretary-in-Charge were parties to such<br \/>\nproceedings having been impleaded eo nomine as respondents 1 and 4<br \/>\nrespectively. The &#8216;Bank&#8217; as such was not a party to the contempt<br \/>\nproceedings. The learned single Judge proceeded on the basis that the<br \/>\nChairman and the Secretary-in-Charge represented the &#8216;Bank&#8217; by<br \/>\nreferring to them as &#8216;Respondent Bank&#8217; and directing them to reinstate<br \/>\nthe complainant (first respondent herein) and to pay all salary arrears<br \/>\nto him. If the Chairman and Secretary-in-Charge were considered as<br \/>\nrepresenting the Bank for issuing such directions, certainly they could<br \/>\nfile an appeal against such directions. The directions were issued to<br \/>\nthem and they were the persons aggrieved.\n<\/p>\n<p>18.\tThe Division Bench, therefore, committed a serious and<br \/>\nobvious error in holding that the appeal [MAT 4075\/1998] was not<br \/>\nmaintainable under clause 15 of the Letters Patent. Though the order<br \/>\nof the learned Single Judge dated 20.11.1998, by which several<br \/>\ndirections to the Bank with reference to first Respondent were issued,<br \/>\nis not a final &#8216;judgment&#8217;, it is an &#8216;interlocutory judgment&#8217; which<br \/>\nfinally decides several rights and obligations of the employee vis-`-vis<br \/>\nthe employer and therefore, appealable under clause 15 of the Letters<br \/>\nPatent.\n<\/p>\n<p>Re : Point No. (iii) :\n<\/p>\n<p>19.\tAs noticed above, by order dated 9.4.1997 in C.O.<br \/>\nNo.200008(W)\/1995, the first inquiry proceedings were set aside and<br \/>\nthe Chairman of the Bank was directed to appoint an outsider,<br \/>\npreferably  an officer from the Co-operative Department, as the<br \/>\nEnquiry Officer,  with a further direction that such Enquiry Officer<br \/>\nshould conduct the enquiry de novo, and submit the report within four<br \/>\nmonths (from the date of first sitting), and a direction to the first<br \/>\nrespondent to fully co-operate in the enquiry. The time stipulated for<br \/>\nappointment of the Enquiry Officer was extended by two weeks on<br \/>\n19.12.1997. The new Enquiry Officer was appointed by the Registrar<br \/>\nof Co-operative Societies, on 5.1.1998. The inquiry was not<br \/>\ncompleted within four months and that led to the initiation of the<br \/>\ncontempt proceedings by the employee (first respondent). The<br \/>\nChairman of the Bank, the Enquiry Officer, the previous Enquiry<br \/>\nOfficer (H. K. Maiti, whose appointment was revoked on 3.10.1997)<br \/>\nand the Secretary-in-Charge of the Bank were shown as<br \/>\ncontemnors\/respondents 1 to 4.  As H.K. Maiti was not a party to the<br \/>\nwrit petition, and as he did not conduct the enquiry, there was no<br \/>\nquestion of his disobeying any order. After perusing the records, the<br \/>\ncourt  by order dated 20.11.1998 came to the conclusion that a prima<br \/>\nfacie case was made out for issuing a show cause notice only against<br \/>\nSri S.K. Das (Enquiry Officer). This meant that no case was made out<br \/>\nfor issue of show cause notice to the Chairman and Secretary-in-<br \/>\nCharge of the Bank.  In fact, it was not the case of the first respondent<br \/>\nthat after the appointment of S.K. Das as Enquiry Officer, there was<br \/>\nany disobedience by the Bank.\n<\/p>\n<p>20.\tIn the circumstances, the court ought to have proceeded to<br \/>\nconsider whether there was any wilful disobedience of the order dated<br \/>\n9.4.1997, on the part of S K Das and if so, punish him for contempt.<br \/>\nAs S.K. Das was nowhere in the picture when the order dated<br \/>\n9.4.1997 was passed in the writ petition, and as he was appointed as<br \/>\nan independent Enquiry Officer only by an order dated 5.1.1988 and<br \/>\nas there was a complaint about the non-cooperation by the first<br \/>\nrespondent, (delinquent employee), it is doubtful whether there was<br \/>\nany case for even issuing a show cause notice to him. Be that as it<br \/>\nmay. We are not concerned with the issue of show cause notice to<br \/>\nS.K. Das in this appeal. What is relevant to be noticed is that the<br \/>\nlearned Single Judge could not have made an order in the contempt<br \/>\nproceedings, that Sri S.K. Das had, by his conduct, disqualified<br \/>\nhimself to be the Enquiry Officer and that he shall cease to be the<br \/>\nEnquiry Officer and that another Enquiry Officer shall be appointed.\n<\/p>\n<p>21.\tThere was also no justification for the further direction by the<br \/>\nlearned Single Judge in the contempt proceedings, that too by an<br \/>\ninterlocutory order, that the complainant should immediately and<br \/>\nforthwith be reinstated into the service of the Bank, and shall be<br \/>\ndeemed to be in the service of the Bank all through, that the employee<br \/>\nshall not be prevented in any manner from discharging his duties and<br \/>\nthat he shall be paid all arrears of salary within four weeks, and that<br \/>\nthe suspension order shall be deemed to have been revoked. These<br \/>\nwere totally outside the scope of the proceedings for contempt and<br \/>\namounted to adjudication of rights and liabilities not in issue in the<br \/>\ncontempt proceedings. At all events, on the facts and circumstances,<br \/>\nthere was no disobedience, breach or neglect on the part of the Bank<br \/>\nand its President and Secretary, to provoke the court to issue such<br \/>\ndirections, even assuming that such directions could be issued in the<br \/>\ncourse of the contempt proceedings. Hence, directions (2) and (3) and<br \/>\nthe direction relating to revocation of suspension are liable to be set<br \/>\naside.\n<\/p>\n<p>Re : SLP (c) Nos. 13045-46\/2003\n<\/p>\n<p>22.\tThese SLPs. arise out of the order dated 3.9.2001 in MAT No.<br \/>\n1102\/2001 filed by the Bank against the order dated 20.11.1998 in<br \/>\nCPAN No. 2237\/1997. As we have held that the appeal filed by the<br \/>\nChairman and Secretary on behalf of the Bank [MAT No. 4075\/1998]<br \/>\nagainst the said order was maintainable, these SLPs. have become<br \/>\ninfructuous.\n<\/p>\n<p>Conclusion :\n<\/p>\n<p>23.\tDuring the pendency of this appeal, the Enquiry Officer has<br \/>\ncompleted the enquiry and submitted his report dated 18.7.2002. No<br \/>\naction has been taken thereon in view of the pendency of this civil<br \/>\nappeal and the interim order dated 25.2.2002 which permitted only the<br \/>\ncompletion of the enquiry. In view of this decision, there will now be<br \/>\nno impediment for the Bank to take further action based on such<br \/>\nInquiry Report.\n<\/p>\n<p>24.\tIn view of the above, we dispose of these matters as follows :\n<\/p>\n<p>(i)\tCA No. 1727\/2002 is allowed. The order dated 26.2.2001 of<br \/>\nthe Calcutta High Court in MAT No. 4075\/1998 is set aside.<br \/>\nDirections (2) and (3) as also the direction that &#8220;the<br \/>\nsuspension shall be immediately deemed to have been<br \/>\nrevoked&#8221; contained in the order dated 20.11.1998 of the<br \/>\nlearned Single Judge passed in CPAN No.2233\/1997<br \/>\n(arising from C.O. No. 20008(W) of 1995) are deleted.\n<\/p>\n<p>(ii)\tSLP (C) Nos. 13045-46\/2003 are dismissed as infructuous.\n<\/p>\n<p>(iii)\tThe appellant-Bank is at liberty to take further action in<br \/>\npursuance of the Inquiry Report dated 18.7.2002, in<br \/>\naccordance with law.\n<\/p>\n<p>(iv)\tParties to bear their respective costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Midnapore Peoples&#8217; Co-Op. Bank &#8230; vs Chunilal Nanda &amp; Ors on 25 May, 2006 Author: Raveendran Bench: B. P. Singh, R. V. Raveendran CASE NO.: Appeal (civil) 1727 of 2002 PETITIONER: Midnapore Peoples&#8217; Co-op. Bank Ltd. &amp; Ors. RESPONDENT: Chunilal Nanda &amp; Ors. DATE OF JUDGMENT: 25\/05\/2006 BENCH: B. P. Singh [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-212747","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Midnapore Peoples&#039; Co-Op. 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