It works fine for me, I also noticed you forgot an ; at the end of your include:
<?php
session_start();
include "db1.php";
?>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" />
<title>aftersave.php</title>
<style type="text/css">
<!--
-->
h3{background-color:#CCCCCC;}
.style3 {font-size: 9px}
</style></head>
<body>
<table width="760" border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="160">Prepared By </td>
<td width="220"><? if(isset($_SESSION['prepare_by'])) { echo $_SESSION['prepare_by'];} ?></td>
<td width="160">Emp No </td>
<td width="220"><? if(isset($_SESSION['emp_1'])) { echo $_SESSION['emp_1'];} ?></td>
</tr>
<tr>
<td>E-mail Address </td>
<td><? if(isset($_SESSION['email'])) { echo $_SESSION['email'];} ?></td>
<td>Designation</td>
<td><? if(isset($_SESSION['designation'])) { echo $_SESSION['designation'];} ?></td>
</tr>
<tr>
<td>Date/Time</td>
<td><?php echo date ("m/d/Y ");echo date ("g:i a")?></td>
<td>Dept </td>
<td><? if(isset($_SESSION['department'])) { echo $_SESSION['department'];} ?></td>
</tr>
<tr>
<td>Sect Manager </td>
<td><? if(isset($_SESSION['selectmanager'])) { echo $_SESSION['selectmanager'];} ?></td>
</tr>
</table>
<h3>Voucher Details</h3>
<FORM NAME="edit" METHOD="POST" ACTION="edit.php" >
<table width="400" height="120" border="0" cellpadding="0" cellspacing="0">
<tr>
<td width="160" height="54">Purpose</td>
<td width="240"><textarea name="purpose2" id="purpose2" width="300"><?php @$query="select * from voucher where emp_1 = '$_SESSION[emp_1]'";
$rt=mysql_query($query);
echo mysql_error();
while($nt=mysql_fetch_array($rt)){
echo "$nt[purpose] "; }?> </textarea><br /></td> </tr>
<tr>
<td height="22">Pay to </td>
<td><input name="text" type="text" value="<? if(isset($_SESSION['pay_to'])) { echo $_SESSION['pay_to'];} ?>" /></td>
</tr>
<tr>
<td height="22">Employee No </td>
<td><input name="text" type="text" value="<? if(isset($_SESSION['emp_2'])) { echo $_SESSION['emp_2'];} ?>" /></td>
</tr>
<tr>
<td height="22">ECER</td>
<td><input name="text" type="text" value="<? if(isset($_SESSION['ecer'])) { echo $_SESSION['ecer'];} ?>" /></td>
</tr>
</table><br />
<input type="submit" name="edit" id="edit" value="EDIT" onclick="edit.php"/></form>
</body>
</html>
