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2019 Supreme(AP) 213

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T. Rajani, J.
Gurindapalli Isaac Dayardhan Rao - Appellants
Vs.
Andhra Evangelical Church, Guntur and Ors. - Respondents
CRP No. 872 of 2019
Decided On : 28-08-2019

Advocates Appeared:
For the Appellant : S. Satyanarayana Murthy

Headnote:

Societies Registration Act - Section 23 - Revision petition is filed, under Article 227 of the Constitution of India, questioning the order, passed in CF No. 8919 of 2018 in SOP-on the file of the Court of Principal District Judge, Guntur, by virtue of which the Court below rejected the petition filed under Section 23 of the A.P. Societies Registration Act, (for short, "the Act") to declare the lease deed, executed by the 1st respondent-Church in favour of the 4th respondent as null and void, by considering that the said dispute does not fall within the ambit of Section 23 of the Act – Held, the leasing of the property, which belongs to the church, would amount to the business of society. The attack on the propriety of the execution of lease deed would be an attack on the affairs of the society, conducted by the treasurer, which come under the provisions of Section 23 of the Act – Petition allowed

ORDER :

T. Rajani, J.

1. This revision petition is filed, under Article 227 of the Constitution of India, questioning the order, dated 19.12.2018, passed in CF No. 8919 of 2018 in SOP-on the file of the Court of Principal District Judge, Guntur, by virtue of which the Court below rejected the petition filed under Section 23 of the A.P. Societies Registration Act, (for short, "the Act") to declare the lease deed, dated 19.3.2015, executed by the 1st respondent-Church in favour of the 4th respondent on 20.3.2015 as null and void, by considering that the said dispute does not fall within the ambit of Section 23 of the Act.

2. Questioning the impugned order, this revision is preferred on the grounds that the lower Court erred in understanding the correct purport and object of Section 23 of the Act, which makes it clear that any dispute arising among the committee or the members of the society is amenable to the jurisdiction of the District Court and the lower Court erred in not exercising the jurisdiction vested in it.

3. Based on the above grounds, the revision petitioner seeks to set aside the impugned order.

4. The lone point, hence, is whether the dispute raised in this petition falls within the purview of Section 23 of the A.P. Societies Registration Act. In the foremost it would be beneficial to have a look at Section 23 of the Act, which reads as follows:

    "23. Dispute regarding management:-In the event of any dispute arising among the Committee or the members of the society, in respect of any matter relating to the affairs of the society, any member of the society may proceed with the dispute under the provisions of the Arbitration and Conciliation Act, 1996, (Central Act 26 of 1996) or may file an application in the District Court concerned and the said Court shall after necessary inquiry pass such order as it may deem fit."

5. A perusal of the above provision makes it clear that the dispute, to fall under the above provision, has to be among the committee or the members of the society and it should be in relation to the affairs of the society. Two aspects fall for consideration before this Court to decide the issue of maintainability of the petition under Section 23 of the Act before the District Court. Whether the dispute is among the committee or the members of the society and whether it pertains to the affairs of the society. That the dispute is among the members is not in dispute. Dispute is only with regard to the said dispute being in relation to the affairs of the society.

6. The averments in the petition would become pertinent to decide the nexus between the relief prayed for and Section 23 of the Act. The relief prayed for is to declare the lease deed, dated 19.3.2015 as null and void. The grounds on which the said lease deed is sought to be declared as null and void would also be material in deciding the jurisdiction.

7. The petitioner is one of the beneficiaries of Andhra Evangelical Church (AEL) being a member of the said Church, which figured as 1st respondent in the petition. The Evangelical Lutheran Church, America (ELCA) is the original owner of all the properties of AEL Church. ELCA transferred all these properties in favour of the Council for the Indian Mission of United Evangelical Lutheran Church in America, a company registered under the Indian Companies Act, 1913. Since the UELCA was holding these properties as trustees for ELCA, on transfer to AELC, it also has been holding these missionary properties as trustees, which is evidenced by a registered partition deed in Doc. No. 706/1958. The origin of the properties at present vested in the hands of the present management of AELC, having nucleus of trust. The properties were purchased out of the funds raised by the donations and subscriptions and trust is created and those in management and in-charge of such properties are impressed as trustees of trust properties. As per the constitution the Constitution of AELC, Article-VI, there are three trustees namely, t

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