IN THE HIGH COURT AT CALCUTTA
Ramendra Mohan, J.
Mahamaya Talkies - Petitioner
Versus
Eastern India motion Pictures Association & ors - Defendant
Suit No. 44 of 1974
Decided On : April 3, 1974
ASSOCIATIONS - MEMBERSHIP - EXPULSION - PROVISIONAL MEMBER - RIGHT TO HEARING - COURT'S INTERVENTION - ARTICLES OF ASSOCIATION - INTERPRETATION - DISCRETION OF EXECUTIVE COMMITTEE - JUDICIAL REVIEW - INJUNCTION - INTERLOCUTORY RELIEF - BALANCE OF CONVENIENCE - IRREPARABLE HARM.
Fact of the Case:
Mahamaya Talkies, a cinema owner, applied for membership in the Eastern India Motion Pictures Association (EIMPA). The application was initially approved, but later the executive committee of EIMPA decided not to entertain the application due to an ongoing legal dispute involving the cinema's previous owner and a creditor. Mahamaya Talkies filed a suit seeking an injunction to restrain EIMPA from giving effect to the decision and to continue its provisional membership.
Finding of the Court:
The court held that the executive committee of EIMPA had exceeded its jurisdiction by taking such a drastic action without giving an opportunity to Mahamaya Talkies to come and explain its position. The court found that the Articles of Association of EIMPA did not provide for such a right being conferred on the executive committee and that the continuance of Mahamaya Talkies' business was dependent on its membership in the association.
Issues: 1. Whether the executive committee of EIMPA had the discretion to refuse membership to Mahamaya Talkies without a hearing. 2. Whether the court could intervene in the internal affairs of EIMPA. 3. Whether the balance of convenience favored granting an interlocutory injunction.
Ratio Decidendi: 1. The court held that the executive committee of EIMPA did not have the unfettered discretion to refuse membership to Mahamaya Talkies without a hearing. The court relied on the principle that a trade union or association cannot give itself an unfettered discretion to expel a member without hearing him, as this would violate the member's right to work. 2. The court held that it could intervene in the internal affairs of EIMPA to protect the interests of Mahamaya Talkies. The court noted that the membership of EIMPA was essential for Mahamaya Talkies to continue its business and that the executive committee had taken a drastic action without giving Mahamaya Talkies an opportunity to be heard. 3. The court held that the balance of convenience favored granting an interlocutory injunction. The court found that granting the injunction would not cause any harm or prejudice to EIMPA, while denying the injunction would cause irreparable harm to Mahamaya Talkies.
Final Decision: The court granted an interlocutory injunction restraining EIMPA from giving effect to the decision of the executive committee and ordered that Mahamaya Talkies' provisional membership be continued until the disposal of the suit.
The petitioner Mahamaya Talkies purchased the above Cinema by a conveyance dated July 25, 1973. The petitioner paid the municipal dues in September 1973 and obtained a licence from the District Magistrate Dinhata on or about September 11, 1973. The petitioner applied to the defendant no.1 Eastern India Motion Pictures Association Limited for membership as an exhibitor by filling up the membership application form and paid a sum of Rs. 2001- for one years fees for such membership. The petitioner started exhibiting films on and from October l, 1973. On the basis of such application the petitioner's name appeared as a provisional member in the list of members of the defendant no.1 which was published for its members on October 30, 1973. On November 13, 1973 the application of the petitioner for membership of the above Association was considered by the Executive Committee of the defendant no.1. The Committee thereupon unanimous]y held that" in view of the High Court's order as duly intimated by Messrs. S.C. Roy Chowdhury & Co. it was not possible for the Committee to entertain the application for membership of M/s. Mahamaya Talkies, Dinhata, at this stage.
2. The main grievance of the petitioner is that the defendant no, 1, in utter violation of the bye-laws of the Association and in contravention of the rules of natural justice purported to terminate the petitioner's membership without even allowing the petitioner to explain its position in relation to the purchase of the said Cinema house and thereby prevented the petitioner from carrying on business as an exhibitor of films. The petitioner further contends that upon enquires the petitioner has come to learn that one Parimal Sarkar, a member of the defendant no. 3 Banishree Pictures who have a claim against the predecessor-in-interest of the plaintiff in respect of the cinema house, had a hand in the matter of cancellation of the membership. The said Parimal Sarkar happens to be an influential member of the said Association and in fact a Vice-president of the said Association for the year 1973-74. The petitioner also contends that as a result of the action taken by the Association the business of the petitioner has totally stopped and would continue to remain so until the membership facilities would be extended once again to the petitioner. The nature of the business is such that no non-member gets the facility to procure good films. The petitioner by its letter asked for holding a meeting so that the petitioner might represent its views upon notice to the said solicitors M/s. S. C. Roy Chowdhury & Co. at whose instance this action had been taken, to remove any doubt, as to the title, which might have been present in the mind of the persons in authority and control of the defendant no.1. In spite of the said demand for natural justice the defendant no.1 by its letter dated January 21, 1974 denied justice by replying as follows:
"Since we have been advised that the Hon'ble High Court has appointed Sri S. Brahmachari, Advocate as Receiver of Messrs. Lakshmi Talkies Dinhata and since the matter is pending before the Court we are unable to extend your provisional membership which please note."
3. The petitioner, accordingly, prayed for an order of injunction restraining the defendant no.1 from giving effect or any further effect to the said order dated November 29, 1973 passed by the said executive committee of the defendant no.1 till the disposal of the suit.
4. It is necessary at this stage to deal with certain facts which are the subject matter of the suit No. 74 of 1973 (Banishree Pictures v.
Sachindra Nath Mukherjee). The defendant No.2 Sachindra Nath Mukherjee, at all material time, was an owner of the cinema house at Dinhata known as Luxmi Talkies. Banishree Pictures: the defendant no. 3 herein entered into certain agreements with Sachindra Nath Mukherjee 'whereby large sums of money became due and owing from Sachindra Nath Mukherjee to Banishree Pictures. Sachindra Nath
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