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2010 Supreme(AP) 1011

2011(2) ALT 158
High Court of Andhra Pradesh
THE HONOURABLE MR. JUSTICE B. PRAKASH RAO
The Chairman, the Hyderabad Gymkhana, S.S.R.L. Swamy & Others
Versus
Ramesh Agarwal & Others
Civil Revision Petition No. 4601 OF 2007
Decided On: 21-10-2010

Advocates appeared:
For the Petitioners:Peri Prabhakar, Advocate. For the Respondents:R1, Srinivas Chowdary, Advocate & R2, None Appeared.

Headnote:A) SOCIETIES REGISTRATION ACT, 2001, Section 6 - Civil Procedure Code, 1908, Section 26 and Order 7 Rule 1:- Founding Member of Hyderabad Gymakhana who is a permanent member who need not any fees paid. Termination of the membership of the Founding Member on the ground of non-payment of amount of Rs.5000 directed to be paid by Resolution in the General Body meeting of the Society. District Judge allowing the O.P. filed by the Founding Member of the society challenging termination, allowed. Order of the District Judge confirmed in appeal.

JUDGMENT

The petitioners-defendants filed this revision under Section 115 of the Code of Civil Procedure, 1980 {CPC}, inter alia, seeking to assail the order dated 30.06.2007 in O.P.No.2392 of 2005 on the file of the III Additional Chief Judge, City Civil Court, Hyderabad, in allowing the petition filed under Order VII Rule 1 read with Section 26 CPC and under Section 6 of the Societies Registration Act, 2001 {“the Act” for brevity}, filed seeking declaration of the action of the defendants in terminating the Founder Membership bearing No.58 of Gymkhana Club, Banjara Hills, Hyderabad, without following due process of Memorandum of Association by issuing letter dated 13.09.2004, as null and void.

The facts, in brief, which are necessary for disposal of this revision, are that, admittedly, the first respondent herein, who happened to be the petitioner in the Court below {hereinafter called as the petitioner}, is the Founder Member of the Gymkhana Club, which is a registered society under the Act. Under the Byelaws of the Society, the Founder Member need not pay any Membership Fee. However, due to some unforeseen circumstances and as a result of the other involvements and attending certain duties, for some time, the petitioner had to live in the Northern parts of the country with a view to return back to Hyderabad. Therefore, he requested his friend Mr. Rajan Khattar to approach the clerk for the purpose of renewal of Membership. Accordingly, the clerk informed Mr. Rajan Khattar that a sum of Rs.5,000/- to be paid towards dues and Rs.500/- towards re-entry fee. Thereafter, Mr. Rajan Khattar paid the said amount on 26.04.2004 under receipt No.27453. In spite of the payment, according to the petitioner, a General Body meeting was held on 26.09.2003 and as per agenda No.5 under the head “Ratification of Readmission of ceased members”, four members were readmitted by collecting necessary fee and the petitioner was informed by letter dated 13.09.2004 that his membership was not revived.

Therefore, according to the petitioner, refusal to admit him as a Founder Member is wholly misconceived and arbitrary and in fact, he is entitled to continue as a Founder Member without any demur. Prior to filing of the present revision, the petitioner filed W.P.No.2261 of 2004, which was disposed of with an observation that the petitioner can avail the remedy under the Act. Hence, the petitioner filed O.P.No.2392 of 2005.

In the said O.P., the third respondent-the second petitioner herein filed counter, which was adopted by respondents 1 and 2-the Registrar of Co-operative Societies and the Chairman, Hyderabad Gymkhana, the first petitioner and the second respondent herein respectively. The counter affidavit was sworn by Sri A. Nageswara Rao, Honorary Secretary of the Society, wherein it is stated that the petitioner was the Founder Member among 100 Founder Members and to discharge the debt due to a Bank, each member was asked to contribute Rs.5,000/- as per the resolution in the General Body Meeting. Several members paid except the petitioner and few others and therefore, the General Body adopted a resolution to terminate the membership of the petition. After collecting Rs.5,500/- from Mr. Rajan Khattar on behalf of the petitioner, the Board decided to admit the petitioner only as a permanent member and when the said decision was informed, Mr. Rajan Khattar wrote a letter on 14.08.2004 to the Society seeking return of the amount of Rs.5,500/-as the petitioner was not interested in joining the Club in any other category except as a Founder Member. Hence, the petitioner was not admitted into membership and the petition was not maintainable.

On these and other allegations as contained in the respective pleadings, the Court below framed the following points for consideration.

1. Whether the Founder Membership of the petitioner is liable to be terminated under Bye-laws of the society?

2. If not, whether the petitioner is deemed to be continued as a Fo





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