The court affirmed that a club cannot unilaterally terminate membership based on non-compliance with unduly applied rules after accepting membership fees in installments; waiver of requirements established through club conduct.

JUDGMENT :

1. This Judgement will dispose of the following two First Appeals:

(i) First Appeal No. 1567 of 2024 in Suit No. 3262 of 2019;and

(ii) First Appeal (L) No. 22281 of 2024 in Suit No. 3262 of 2019.

2. Sucheta Desmond Rodrigues is the Plaintiff in the captioned Suit and also the Appellant (“Appellant”) in First Appeal No.1567 of 2024 in Suit No. 3262 of 2019, in which Respondent No.1 is the Bombay Presidency Golf Club Limited (“the Club”), Respondent No.2 is the President of the Club and Respondent No.3 is the Secretary & Chief Executive Officer (CEO) of the Club. Whereas the Club, Respondent No.2, and Respondent No.3 are the Appellants in First Appeal (L) No.22218 of 2024, and Sucheta Desmond Rodrigues is the Respondent. While this Judgement will dispose of both the captioned First Appeals, for the sake of convenience, reference to the parties shall be as they are arrayed in First Appeal No.1567 of 2024.

3. The Appellant had filed the captioned Suit inter alia seeking (i) a declaration that she is entitled to make the balance payment of the Entrance fees towards the membership of the Club in installments; (ii) specific performance of the contract entered into between the Appellant and the Respondents; and (iii) a permanent injunction restraining the Club from unilaterally/arbitrarily terminating the Appellant’s membership.

4. The Trial Court, however, vide a judgement dated 5th July 2024 (“the Impugned Judgement”), dismissed the Suit and inter alia ordered the Club to refund the amount paid by the Appellant towards entrance fees.

5. It is thus that both the captioned First Appeals have been filed. The Appellant is aggrieved by the dismissal of the Suit, whereas the Club and Respondent Nos.2 and 3 are aggrieved by the portion of the Impugned Judgement whereby the Trial Court directed the Club to refund the amount paid by the Appellant towards entrance fees.

6. Before adverting to the rival contentions, it is necessary for context to set out the following facts:

i. The Appellant had, in the year 2017, applied for a short-term membership of the Club for herself and four children, two of whom were her biological children and the other two dependent children, namely Amoorth Shetty and Aadhyaa Shetty, who were the Appellant’s wards, being the children of the Appellant’s predeceased sister, one Sheetal Dayanand Shetty.

ii. The Appellant thereafter applied for permanent membership (category B/Life) for herself and mentioned the names of all four children under “Family Details” in the membership form. The Appellant mentioned the names Amoorth and Aadhyaa Shetty as “son” and “daughter” and annexed the following documents, viz., (a) the Appellant’s passport, (b) the birth certificates of all four children, (c) the death certificate of the Appellant’s sister, i.e., Sheetal Dayanand Shetty, and (d) the Order dated 7th April 2017 passed in Guardian Petition No.3 of 2016, i.e., the Guardianship Petition filed by the Appellant and her brother for being appointed as the legal guardians of Amoorth and Aadhyaa Shetty.

iii. The Appellant then, by her email dated 13th April 2018, informed the Club that the Appellant had made payment of an amount of Rs.6,18,760/- towards her short-term membership of the Club in December 2017 and requested the Club to allow the Appellant to make payment of the balance membership fees in installments as follows:

(i) payment of Rs.10,00,000/- on 2nd May 2018 (for which a post-dated cheque was already deposited with the Club’s accounts department that afternoon);