THAKUR JUGAL KISHORE SINHA Vs. SITAMARHI CENTRAL CO OPERATIVE BANK LIMITED

JUDGEMENT

(1.) This appeal by certificate granted by the High Court at Patna under Art. 134 (1) (c) of the Constitution is directed against the judgment and order of that Court, dated December 14, 1964 in Criminal Miscellaneous Appeal No. 6 of 1964 where by the appellant was found guilty of contempt of Court, i. e., of the Assistant Registrar, Co-operative Societies, Sitamarhi Circle, exercising the powers of the Registrar, Co-operative Societies, Bihar, under S.48 of the Bihar and Orissa Co-operative Societies Act, 1935.

(2.) The three questions which were argued before us in this appeal were:- (1) Whether the Assistant Registrar of Co-operative Societies was a Court within the meaning of the Contempt of Courts Act, 1952; (2) Even if it was a Court, whether it was a Court subordinate to the Patna High Court ; and (3) whether the words used by the appellant in one of his grounds of appeal to the Joint Registrar of Co-operative Societies, which formed the basis of the complaint, did amount to contempt of any Court.

(3.) The facts necessary for the disposal of the appeal are as follows: The Sitamarhi Central Co-operative Bank Ltd. (formerly named as Sitamarhi Central Co-operative Union) was a society registered under the Bihar and Orissa Co-operative Societies Act, 1935, hereinafter referred to as the Act. The appellant was the elected Chairman of the Society and was in control of its entire affairs. The bank was engaged in carrying on a business inter alia in salt, sugar and kerosene oil. It was alleged that the appellant entrusted to one Suraj Banshi Choudhary the work of supplying coal for which purpose he was given an advance of Rupees 7,004-5-0 and that out of this amount a sum of Rs. 5,014-5-9 could not be realised from Suraj Banshi Choudhary. Thereafter, a surcharge proceeding under S. 40 of the Act was taken up before the Registrar of Co-operative Societies on December 22, 1953 when a sum of Rs. 14, 288-13-9 was held to be realisable from the appellant and another person. The appellant went in appeal to the State Government and by an order, dated March 28, 1957 the amount was reduced to Rs. 5,014-5-9. The bank was not made a party to the appeal before the State Government and it raised a dispute under S. 48 of the Act that the appellant was liable for the whole of the original amount of Rs. 14, 288-13-9 on the ground that the State Government's order being ex parte was not binding on it. This dispute went to the Assistant Registrar of Co-operative Societies exercising powers of the Registrar under S.48 of the Act. On May 15, 1964, the Assistant Registrar decided the matter upholding the contention of the bank and making the appellant liable for the entire amount of Rs. 14,288-13-9. In the meantime, however, the appellant had challenged his liability for the amount of Rs. 5, 014-5-9 as determined in appeal by the State Government by a Writ Petition to the High Court of Patna which was dismissed. He then filed a title suit before the Subordinate Judge of Muzaffarpur who decreed it in his favour and at the time when the contempt matter was heard by the Patna High Court an appeal preferred by the bank from the said decree was pending before the District Judge, Muzaffarpur. The appellant preferred an appeal to the Joint Registrar of Co-operative Societies against the order of the Assistant Registrar who was made respondent No. 2 in the appeal. One of the grounds of appeal ran as follows:-