Karnataka High Court
B.H.INAMDAR - Appellant
Versus
B.F.SWAMY - Respondent
Decided On : 08-28-90
R.S.A. : 679 of 1979
Society - Karnataka Societies Registration Act - Section 15
Fact of the Case:
The plaintiff filed a suit on behalf of a registered society under the Karnataka Societies Registration Act, claiming a sum of money. The lower courts dismissed the suit on the grounds that it was not properly instituted by the plaintiff.
Finding of the Court:
The court found that the plaintiff, as the Secretary of the society, did not have the authority to file the suit without a resolution passed by the board authorizing him to do so.
Issues: The main issue was whether the Secretary of the society had the authority to institute the suit without a resolution from the board.
Ratio Decidendi: The court interpreted Section 15 of the Karnataka Societies Registration Act, which provides that a society may sue or be sued in the name of designated authorities as determined by the rules and regulations of the society. The court emphasized that the power to file or defend suits must vest in the board, and unless the board authorizes it, no suit can be filed even by a person in whose name the society may sue or be sued.
Final Decision: The court dismissed the appeal, upholding the lower courts' decision to dismiss the suit, and ruled that the Secretary had no authority to file the suit without a resolution from the board.
( 1 ) THIS Regular Second Appeal has been preferred by Sri B. H. Inamdar, Secretary, Karnataka Grama Seva Sangha, Workhead office, at Raichur. The suit filed by the Appellant-plaintiff was dismissed by the trial Court as well as the First Appellate Court holding that the appellant-plaintiff had no right to file the suit and the suit was not properly instituted on behalf of the Sangha.
( 2 ) THE appellant-plaintiff filed a suit being O. S. No. 40/1973 in the Court of the Principal Munsiff at Gulbarga, claiming a decree for a sum of Rs. 4,200/- and interest thereon at 9% per annum from the defendant. It was alleged that the defendant had purchased old furniture from the Karnataka Grama Seva Sangha and had failed to pay the sale price. It is not disputed that the Karnataka Grama Seva sangha is a registered Society under the Hyderabad Societies registration Act, and by virtue of the provisions of Section 31 of the karnataka Societies Registration Act (hereinafter referred to as 'the act'), it is deemed to be a Society registered under the said Act. It is therefore governed by the provisions of the Karnataka Societies registration Act, 1960. The sole ground on which the suit as well as the appeal have been dismissed is that the suit had not been properly instituted by Sri B. H. Inamdar on behalf of the Karnataka Grama Seva sangha, a Society under the Act.
( 3 ) AS has been observed earlier, the suit had been filed by Sri B. H. Inamdar, claiming to be the Secretary of the said Sangha or society. It is claimed by the plaintiff that under the Act, Bye-laws and rules of the Society, the Secretary is empowered to institute and defend suits. It is not urged before me that the Secretary was specially authorised by the Board of Trustees of the Society to institute the suit.
( 4 ) SRI C. M. Desai, learned Counsel for the Appellant-plaintiff submitted that where a valid decision is taken to institute a suit, Article 17 of the Memorandum of Association must be understood to mean that the Secretary of the Association for the time being or any other person authorised by the Board in that behalf can represent the society in such legal proceeding instituted by the Society. It is unnecessary to go into that question, because in the instant case, there is no decision of the Board to institute a suit. In my view, in the absence of anything to the contrary in the resolution authorising the filing of a suit, the Secretary may under Article 17 derive power to represent the Society in such a suit.
( 5 ) LEARNED Counsel appearing for the parties have relied upon the same provisions of law and the Articles of Memorandum of association. Section 15 of the Karnataka Societies Registration Act, reads as follows:-"15. Suits by and against Society:- Every Society registered under this Act may sue or be sued in the name of the President, chairman, or principal Secretary or the trustees as shall be determined by the rules and regulations of the Society, and in default, of such determination, in the name of such persons as shall be appointed by the governing body for the occasion. Provided that, it shall be competent for any person having a claim or demand against the Society to sue the President, or chairman or Principal Secretary or the Trustees thereof if, on an application to the governing body, some other officers or person be not nominated to be the defendant. "
( 6 ) THE learned Counsels have submitted before me that the Articles of the Memorandum of Association, may be considered to be the Rules and Regulations under Section 15 of the Karnataka societies Registration Act. Reliance is placed upon Articles 10 (g) and 17 of the said Memorandum of Association which read as follows:-"10. The Board shall administer the affairs and conduct the activities of the Association and in particular. (a) to (f ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (g) File or defend suits and take or defend all other proceedings on
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