The main legal point established in the judgment is that the induction of members as Promoter-Members into a society must comply with the conditions and requirements specified in the Articles of Association, including the payment of a specified amount for membership.

Headnote:
Society - Membership Dispute - Andhra Pradesh (Talengana Area) Public Societies Registration Act, 1350 Fasli - 4, 5, 11, 12 - The court discussed the dispute regarding the induction of members as Promoter-Members into the General Body of the Society under the Andhra Pradesh (Talengana Area) Public Societies Registration Act, 1350 Fasli. The court analyzed the Articles of Association, the conditions for membership, and the resolutions passed by the Board of Governors and the General Body. The court highlighted the requirement of payment of a specified amount for becoming a Promoter-Member and the lack of such payment by the appellants. The court also emphasized the absence of a legal induction of the appellants as Promoter-Members and the invalidity of their membership. The judgment affirmed the decisions of the lower courts, dismissing the appeals.
Fact of the Case:

The dispute arose from the induction of members as Promoter-Members into the General Body of the Society under the Andhra Pradesh (Talengana Area) Public Societies Registration Act, 1350 Fasli. The appellants claimed to have been legally inducted as Promoter-Members, while the Society contended that their induction was not in accordance with the law.
Finding of the Court:

The court found that the appellants were not legally admitted as Promoter-Members and their membership was void due to the non-payment of the required amount. The court affirmed the decisions of the lower courts, stating that no prima facie case had been made out by the appellants and refused to grant interim relief.
Issues: The main issue was whether the appellants had been legally admitted as Promoter-Members into the Society, as claimed by them, or if their membership was void due to the non-payment of the required amount, as contended by the Society.
Ratio Decidendi: The court held that the appellants were not legally inducted as Promoter-Members, emphasizing the requirement of payment of a specified amount for becoming a Promoter-Member and the lack of such payment by the appellants. The court also highlighted the invalidity of the resolutions passed by the Board of Governors and the General Body, confirming the decisions of the lower courts.
Final Decision: The appeals were dismissed, affirming the decisions of the lower courts, and no order as to costs was made.

JUDGMENT

C.K. THAKKER, J.

1. Leave granted.

2. All these appeals arise out of a common judgment and order passed by the High Court of Judicature, Andhra Pradesh at Hyderabad on January 2, 2007 in Civil Revision Petition Nos. 6269, 6353 and 6301 of 2006. By the said order, all the Revision Petitions were dismissed by the High Court and the order passed by the Court of IInd Additional Chief Judge, City Civil Court, Hyderabad on December 1,2006 in I.A. Nos. 4192 and 4194 of 2006 in O.P. Nos. 20070 of 2006 and 2146 of 2006 is confirmed.

3. Short facts giving rise to the present litigation are that M/s Chaitnya Bharathi Educational Society (Society for short) was registered in the year 1979 under the Andhra Pradesh (Talengana Area) Public Societies Registration Act, 1350 Fasli, vide Registration No. 964 of 1979. Its objects as specified in the Memorandum of Association are-

(a) To establish, manage, aid and maintain educational and other institutions, to impart education and training at all stages for the promotion of Engineering, Medicine, Pharmacy, Agriculture, Commerce, Literature, Arts and Sciences and Management and other subjects and allied activities for diffusion of useful knowledge and training, specially to instill self-confidence, creative thinking and entrepreneurship in the students and trainees.

(b) To devise ways and means and accord facilities for candidates to specialize in all or any of the above subjects (i.e.) to develop Centres of excellence for research in the above subjects with Industrial Orientation.

(c) To act as a Trust Board to accept endowments, bequests, donations, subscription, grants from institutions, both Private and Public, Corporate bodies, and Government and other transferee of property made to the Society and administer them on the terms agreed to.

(d) To try to offer medical and clinical facilities to the needy by opening the necessary hospitals, aid clinical laboratories or X-Ray Institutions, and to run, maintain Homes, Residential Houses etc., for .the needy either by purchasing the necessary equipment or by approaching such institutions or the Governments including those of other Countries, for donation of such equipment and the land and buildings necessary for locating such equipments and Institutions.

(e) To offer consultancy services in any area directly or through the Institutions owned and managed by the Society.

(f) To carryon activities for any other charitable purposes and activities of General Public Utility.

4. There were 13 Founding Members who then constituted General Body as well as Governing Council/Executive Body who were distinguished persons from various professions. The Articles of Association of the first respondent-society enumerate categories of membership in Clause 4 as (i) Patron, (ii) Promoter, (iii) Donor: and (iv) Member (ordinary member). Clause 5 provides for termination of membership. Whereas functions of the General Body have been specified in Clause 7, functions of the Board of Governors have been dealt with in Clause 11. Sub-clause (i) thereof enacts that the Board of Governors have the power to admit new members of the Society on a proposal sponsored by at least two members of the Board of Governors. Clause 12 relates to meetings of the Board of Governors.

5. It is the case of the appellants that in exercise of power under Clause 11 (i) of the Articles of Association, the Board of Governors on January 20, 2000 resolved to induct nine persons as Promoter-Members into the General Body of the Society. It was unanimous decision of the Board. It was also their case that the resolution was subsequently accepted and approved by the General Body of the first respondent-society in its meeting dated March 22, 2006. Thus, the appellants had become and continued to remain as Promoter-Members of the society. They are, therefore, entitled to participate in the election of Board of Governors as per the Memorandum and Articles of Association. The appellants stated that they received a

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2007 Supreme(SC) 604

The main legal point established in the judgment is that the induction of members as Promoter-Members into a society must comply with the conditions and requirements specified in the Articles of Association, including the payment of a specified amount for membership.

Cases Referred (2)