The High Court
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK WP(C) No.9656 of 2022 (Through Hybrid mode) Kalinga Institute of Mining Engineering and Technology, Angul …. Petitioner State of Odisha and others …. Opposite Parties -Versus- Advocates appeared in this case: For Petitioner : Mr. Amit Prasad Bose, Advocate Mr. Bikash Mishra, Advocate
Legal Reasoning
For Opposite Parties : Mr. A.K. Sharma, Advocate (AGA) (for O.P. nos.1 to 3) Mr. A. K. Mishra, Advocate (for O.P. no.4) CORAM: JUSTICE ARINDAM SINHA --------------------------------------------------------------------------- Date of hearing and judgment: 07.02.2023 -------------------------------------------------------------------------------- 1. Mr. Bose, learned advocate appears on behalf of petitioner. He submits, his client is the institute. It is represented through its Founder Trustee-cum-Chairman as stated in the cause title. 2. The Trust had filed, inter alia, WP(C) no.11357 of 2019, which was disposed of by coordinate Bench on 12th Page 1 of 7 April, 2021. For enforcing compliance of direction made in
Decision
said order, the writ petitioner (Trust) had also filed for contempt, disposed of by this Bench on order dated 11th April, 2022. Pursuant thereto, this writ petition was filed by the institute, impugning letter dated 4th April, 2022 issued by the bank. 3. He submits, savings bank account no.30406862960 stands in name of his client, petitioner (institute). He draws attention to page 48, from which it transpires that as on 23rd March, 2011 there was clear credit balance of Rs.2,70,33,873/- in the account. Next he draws attention to passbook issued by the bank in respect of said account (page- 65). He submits, customer’s name has been given as Founder Trustee-cum-Chairman. The customer is none other than the Founder Trustee representing the institute in this writ petition and the Trust in aforesaid WP(C) no.11357 of 2019. 4. Referring to impugned letter dated 4th April, 2022 he demonstrates that the bank reiterated, money and fixed deposits were and in respect of S.B. Account no.30406862960. He submits, the bank is purporting to hold on to the money of the institute by raising a cloud that the Trust, not account holder, had applied for it. He seeks interference. 5. Mr. Sharma, learned advocate, Additional Government Advocate appears on behalf of State. WP(C) no.9656 of 2022 Page 2 of 7 6. Mr. Mishra, learned advocate appears on behalf of the bank. He submits, correct information has been given in impugned letter. There cannot be any dispute on the facts. The money belongs to the institute, who had opened account and created the fixed deposits. The Trust filed and moved the writ petition and obtained orders. The Trust cannot obtain compliance of order in its writ petition, in respect of money belonging to the institute. 7. Mr. Bose, in reply draws attention to letter dated 12th April, 2022 written by the Trust. He submits, there should be no confusion because addressor of the letter is the Founder Trustee-cum-Chairman of the institute. That would appear from signature of addressor in the letter. He draws attention to, inter alia, paragraphs 4, 6 and 8 in the letter. 8. In WP(C) no.11357 of 2019 there was order dated 12th April, 2021 made by the coordinate Bench, disposing of it. Petitioner in the writ petition was Kalinga Institute of Mining Engineering and Technology Trust. Relevant text of the order is reproduced below. “This matter is taken up by video conferencing mode. Heard Mr. Budhadeb Routray, learned Senior Counsel for the petitioner, Mr. Baidhar Sahoo, learned Counsel for the Opposite Party- 3-Bank and learned Additional Standing Counsel. WP(C) no.9656 of 2022 Page 3 of 7 Subsequent to filing of the Writ Petition on 01.07.2019 and passing of the Interim Order dtd. 18.07.2019, the Collector & District Magistrate, Angul vide Letter No.1268 dtd. 23.11.2020 (Annexure-17) has intimated all the Banks as follows: office “With reference to the letter on the subject cited above, I am to say that, letter this No.439/Dt.13.05.2019 is hereby withdrawn so as to allow the trust of KIMET, Chhendipada to manage the the from direction Commissioner-cum-Secretary to Govt., SD&TE Deptt., Odisha vide Dt. No.4377/SDTE, order 13.11.2020.” institution adhering received In view of the aforesaid letter to the Banks by the Collector, nothing remains to be decided in the writ petition and the writ petition has become infructuous. So far as the Fixed Deposit of the trust KIMET is concerned, the petitioner may apply for withdrawal from Fixed Deposit before the concerned Bank and the Manager shall take a decision on the application in accordance with the rules of the Bank within a month of filing of that application.” (emphasis supplied) Perusal of impugned letter does not reveal that it is in reply to a letter or requisition made to the bank. On query from Court Mr. Mishra is also unable to demonstrate that impugned letter was in response to a letter or requisition made by the Trust. WP(C) no.9656 of 2022 Page 4 of 7 Directions in above order, regarding the fixed deposits, were clear inasmuch as the Trust was given permission to apply for withdrawal from the fixed deposits before concerned bank and the Manager was directed to take a decision on the application in accordance with the rules of the bank. 9. The confusion appears to have happened because the money is held by the bank on account of the institute and said earlier writ petition, in which aforesaid order dated 12th April, 2021 allowing petitioner therein to apply for withdrawal of the fixed deposits was passed, made by the Trust. Court presumes that impugned letter was in context of said direction. It becomes clear that the bank did not point out to the coordinate Bench, the money was held in savings bank account of the institute and not the Trust. 10. In the contempt application arising out of aforesaid order dated 12th April, 2021 there was disposal of the application that direction upon the Manager of the bank to take a decision regarding the fixed deposit, as mentioned in said order dated 12th April, 2021, subsequently modified, on finding that by impugned letter dated 4th April, 2022 a decision had been taken and, therefore, there could not be cognizance of contempt. 11. Petitioner in the writ petition, now before Court, is the institute. It is asking for setting aside and quashing of impugned letter dated 4th April, 2022. Said letter gives WP(C) no.9656 of 2022 Page 5 of 7 information that the money in the saving account and the fixed deposits is of the institute. It is true that by letter dated 12th April, 2022 Founder Trustee-cum-Chairman of the institute had clarified the position but the letter was written by the Trust. Nevertheless, paragraphs 4, 6 and 8 in said letter are extracted and reproduced below. “4. That vide my above letters & other earlier letters addressed to you, it has be erroneously mentioned that the SB A/c and eight numbers of F.D.’s are existing at your branch in the name of KIMET Trust but fact remains that the said SB A/c and eight numbers of F.D.s are kept at your branch in the name of the Institution i.e. Kalinga Institute of Mining Engineering and Technology and the undersigned is the account holder which has been admitted vide your letter No. Gen/36/29 dt.25.10.2017 and letter No. Gen 36/31 dt. 31.10.2017. xxx xxx xxx 6. That in view of the fact stated above you are requested to allow operation of the above SB A/c and issue the Duplicate STDRs as per RBI guidelines and banking rule by executing Indemnity bond and/or transfer all the F.D’s amount to the Savings bank account. The Indemnity Bond formant may also please be provided to execute the Indemnity Bond so as to get the Duplicate STDRs. It has been delayed too much and our institution has been closed since 2016-17 by AICTE, New Delhi due to non- compliance of 61 numbers of deficiencies for paucity of fund. xxx xxx xxx WP(C) no.9656 of 2022 Page 6 of 7 8. That you may refer clause-20 of the Bye Law, where in it has been mentioned, that the office of the Trust can function at any place as per decision of the Board. Since, the Institution, KIMET has not been functioning since 2016-17 due to non compliance of deficiency for paucity of fund. You may communicate to my e-mail- am [email protected] communicating to your branch e-mail. Even you have not mentioned the designation.” as I 12. Petitioner will apply to the bank on its requirement in respect of its saving bank account no.30406862960. The requisition must be made in name of recorded customer, in respect of the account, being Founder Trustee-cum-Chairman, obviously of the Trust. On the requisition made, the requisition likely to be those already informed by said letter dated 12th April, 2022, the bank is required to act thereupon. Present confusion regarding the institute and the Trust stands eliminated by this adjudication and the bank will confine its attention to the requisition made by the account holder. Court is on notice that original FDRs are not available and the requisitions may include requirement for issuance of indemnity, for issuance of duplicate FDRs. 13. The bank is directed to respond within two weeks on the requisition(s) to be made by the account holder. 14. The writ petition is disposed of. (Arindam Sinha) Judge R.K.Sethi WP(C) no.9656 of 2022 Page 7 of 7