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2023 Supreme(AP) 1417

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K.Manmadha Rao, J.
Mary `s Educational Society - Appellant
Versus
K.Mary Ratnam - Respondent
C.R.P. Nos. 4160, 4163 of 2018
Decided On : 29-09-2023

Advocates appeared:
P.Roy Reddy, Advocate, C.V.Mohan Reddy, Advocate, K.Venkatesh, Advocate

The authority to manage society operations must adhere to established bye-laws, and elections not conducted following prescribed procedures are void.

Headnote:(A) Societies Registration Act, 1860 - Sections pertaining to management disputes - The court addressed issues surrounding the election validity of society office bearers due to alleged procedural violations. The 2nd petitioner, K. Raj Kumar, established rightful continuation as Secretary and Correspondent as per the society's bye-laws. (Paras 22-40)

Facts of the case:
The 1st petitioner Educational Society registered since 1988 faced internal disputes regarding the Secretary's position, with allegations of mismanagement and procedural non-compliance for the elections held on 23/5/2012 and 27/5/2012. The 2nd petitioner alleged violations of society bye-laws by the opposing respondents during the elections. (Paras 1-6)

Findings of Court:
The findings by the court below were deemed perverse and unsupported by evidence; the 2nd petitioner was entitled to reinstatement as Secretary. Permanent injunction was granted against the respondents' claims as executive committee members. (Paras 39-41)

Issues: The court addressed the legitimacy of the elections conducted on 23/5/2012 and 27/5/2012 according to the society's bye-laws and the respective authority of the parties as managing body members. (Paras 22-40)

Ratio Decidendi: The court determined that the authority to convene meetings rested with the Secretary, and the lower court's findings failed to adhere to the bye-laws, thus justifying the appeal. (Paras 40-41)

Result: Civil Revision Petitions allowed. The impugned order was set aside, reinstating the 2nd petitioner as Secretary with injunction against falsely proclaiming executive membership. (Para 41)

Table of Content
1. overview of cases and primary facts (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. procedural fairness and interim orders (Para 8 , 10)
3. claims of improper election and governing body procedures (Para 11 , 12 , 13 , 16 , 20)
4. procedural correctness is essential for valid elections in societies. (Para 18)
5. analysis of bye-laws regarding meetings (Para 22 , 24 , 25 , 28 , 30 , 31 , 32 , 36 , 40)
6. bylaws must be strictly adhered to in elections and decision-making processes. (Para 23)
7. ruling in favor of appellant regarding status as secretary (Para 39 , 41)
8. final decision and closure of proceedings (Para 42 , 43)

JUDGMENT

1. Since the Civil Revision Petitions arise out of a common order dtd. 29/6/2018 passed in SOP No.308 of 2012 and SOP No.51 of 2015 on the file of the Principal District Judge, East Godavari at Rajamahendravaram (for short "the Court below"), they are being taken up for disposal together, by way of this common order.

2. SOP No.308 of 2012 was filed by the petitioners in C.R.P.No.4160 of 2018 seeking a declaration that 2nd petitioner is continuing as Secretary and Correspondent of 1st petitioner Society, and to declare the Executive Body Meeting dtd. 23/5/2012 and the election of the respondents as void, and also to grant permanent injunction against the respondents, excluding 6th respondent, not to proclaim that they are Executive Committee members and not to interfere with the day to day affairs of the petitioners and in maintaining bank accounts.

3. SOP No.51 of 2015 was filed by the respondents in C.R.P.No.4163 of 2018 seeking a declaration that K. Raj Kumar is not Secretary and Correspondent of the Society and for directing him to hand over the original property documents of the society and to render accounts from the year 2004 to 27/5/2012 and grant permanent injunction against the respondents No.1 and 2 therein and also to direct 5th and 6th respondents therein not to entertain the Bank operations by the present Principals of St.Mary College of Pharmaceutical Sciences at Surampalem, St.Mary College at Cheepuruapali pending disposal of the said SOP and to permit the newly appointed Principals to operate the accounts and also to direct 5th and 6th respondents therein to produce the statement of accounts.

4. For sake of convenience, the parties are hereinafter referred to, as arrayed before the Court below in S.O.P.No.308 of 2012.

5. The Court below clubbed both the S.O.Ps. and recorded common evidence in S.O.P.No.308 of 2012. During enquiry, on behalf of petitioners, 2nd petitioner in S.O.P.No.308 of 2012 was examined as P.W.1 and Exs.A.1 to A.10 were got marked. On behalf of respondents, respondents 2 and 7 in S.O.P.No.308 of 3012 (who are petitioners 3 and 4 in S.O.P.No.51 of 2015) were examined as R.Ws.1 and 2 and one D.Kantha Rao, the then Administrative Officer of St.Mary Educational Society, Sarpavaram was examined as R.W.3, and Exs.B1 to B16 were got marked.

6. The facts which led to filing of SOP No.308 of 2012 are as follows:

The 1st petitioner Educational Society was registered on 12/1/1988 and the 2nd petitioner is life member and continuing as Secretary and Correspondent of the society and managing through treasurer/3rd respondent and deputies/2nd and 4th respondents who are liable for rendering the accounts. As they failed to do so, the 2nd petitioner demanded them for correct and proper accounts but they postponed on one pretext or the other and screened some records of the society. In the circumstances, the respondents No.2 to 4 got issued a notice through 1st respondent/President for conducting Governing Committee meeting on 23/5/2012 at 3.00 p.m. by violating Clause 15 of the bye-laws. As per Clause 5 of the Bye-laws, the 2nd petitioner, being life member, cannot be terminated or removed and will continue till death. Against the proposal of the E.C. meeting, the 2nd petitioner sent a protest letter dtd. 18/5/2012-Ex.A4 and got issued a rejoinder on 25/5/2012, for which, he recei

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