IMPORTANT POINT
The judgment establishes that ownership rights under the Indian Companies Act prevail over claims by unregistered bodies, reinforcing the importance of proper legal registration and documentation.

JUDGMENT :

Sugato Majumdar, J.

1. This is a suit for declaration and permanent injunction.

2. Sum and substance of the plaint case, necessary for present adjudication, can be summarized as follow :

(a) English Freemasonry is an ancient Order spreaded over the world, having its’ base in England. This is an unincorporated association of private lodges.

(b) For proper administration of private lodges, the Grand Lodge of England formed Provincial Grand Lodge in the European countries and district lodges overseas. In India, various District Grand Lodges (in short “DGL”) were formed, one of which was Grand Lodge of Bengal.

(c) In order that properties can be acquired for beneficial use for Masonry purposes by DGL, the Plaintiff company was formed in the year 1912 and was incorporated under Indian Companies’ Act 1882.

(d) Subsequently, the Plaintiff company acquired a piece and parcel of land measuring about 131 cottah, located at 19, Park Street, Kolkata in terms of a registered indenture dated 28.12.1912. This property, apart from a large lawn measuring about 10,000 sq. ft. also comprises two two storied buildings and two small one storied buildings. In one of the two storied buildings, DGL and the Plaintiff have their respective offices on the ground floor and residential accommodation of the officers of DGL on the first floor.

(e) The other two storied building has two halls and accommodation for festive boards and one kitchen on the ground floor of the building. “The Temple” for the rituals is situated on the first floor of the building. The small building along the way consists of respective accommodation of a school, free poly clinic and office of one M/S S. Enterprises. The building in the rear portion and other small buildings are used as staff quarters. Meeting of DGL and other lodges are held in rooms allocated in the main building.

(f) A memorandum of understanding was signed and executed between the Plaintiff and one Susmita Dutta, the sole proprietor of M/s S. Enterprise, as aforesaid, to manage and maintain the lawn and the eastern hall on the ground floor of the main building. The memorandum of understanding was valid upto 31.03.2009. Despite expiry of the same, the said Susmita Dutta continued to commercially exploit the lawn and the eastern hall. This resulted in multiple litigations between the parties.

(g) District Grand Lodge of Mark Master Masons of Bengal (in short “DGLMMM”) was formed and constituted under Grand Lodge of Mark Master Masons of England and Wales.

(h) The Defendant No.2 purporting to act as the District Grand Master of the Defendant No. 1 was in effective control of the organization. Earlier the Defendant No. 2 was also involved in administration and management of DGL and the Plaintiff and was instrumental in grant of licence, in terms of the memorandum of understanding, to Susmita Dutta. The Defendant No. 2 was subsequently removed from the Plaintiff and DGL.

(i) The Plaintiff permitted DGLMMM to use two rooms on the ground floor of the main building for holding meetings. This DGLMMM was unregistered body. Permission was given to DGLMMM on clear understanding and undertaking of that it would not permit any other body, organization, association or person to use the property. This part was used by DGLMMM for office use.

(j) Disputes arose from the fact that the Defendant No. 2, at one point of time, when he held stewardship of DGLMMM, colluded with Susmita Dutta and authorized her, on behalf of the DGLMMM to act as its operating agent in the eastern hall of the building and the lawn.

(k) The unregistered body DGLMMM filed a suit in the City Civil Court at Calcutta which was registered as TS 1618 of 2010. The present Defendant no. 2 represented the unregistered body, namely, DGLMMM. This suit was filed praying for declaration that the unregistered body DGLMMM had right to use the Eastern Hall and the adjoining lawn on a portion of the premises no. 19, Park Street, Kolkata. This suit was withdrawn with liberty to