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2004 Supreme(Chh) 2

2004 (2) C.G.L.J. 79
HIGH COURT OF CHHATTISGARH, BILASPUR
Fakhruddin, J.

Shri Mudhu Venkat Narayan Rao Memorial School Society
vs
State of C.G. And Ors.
Writ Petition No. 620 of 2003
Decided On : 5/1/2004

The central legal point established is the requirement for an application for enquiry to be supported by a majority of members or one-third of the governing body, and the need to file an appeal before the appropriate authority as per the definition of 'Registrar' under Section 3(c) of the Adhiniyam.

Headnote:

Registrar - Society Election Dispute - Society Registrikaran Adhiniyam, 1973, Section 32, Section 40 - The court discussed the requirements for an enquiry and settlement of dispute under Section 32(2) of the Adhiniyam and the jurisdiction for filing an appeal under Section 40. It emphasized the need for the application to be supported by a majority of members or one-third of the governing body for an enquiry, and the proper authority for filing an appeal, highlighting the definition of 'Registrar' under Section 3(c) of the Adhiniyam.

Fact of the Case:

The petitioner challenged an order related to a society election dispute, arguing that the appeal to the Minister was not maintainable.

Finding of the Court:

The court found that the application for enquiry did not meet the requirements under Section 32(2) and the appeal filed before the Minister was not maintainable.

Issues: Enquiry and settlement of dispute under Section 32(2) of the Adhiniyam, jurisdiction for filing an appeal under Section 40.

Ratio Decidendi: The application for enquiry must be supported by a majority of members or one-third of the governing body, and the appeal must be filed before the appropriate authority as per the definition of 'Registrar' under Section 3(c) of the Adhiniyam.

Final Decision: The court directed the respondents to file an appeal/petition before the Registrar/Additional Registrar within fifteen days for examination and consideration.

ORDER

Fakhruddin, J.

1. The petitioner has filed the present petition challenging the order dated 17-1-2003 passed by respondent No. 1 received under Reference No. 176/ 2003/11/Ba. U. Raipur, dated 20-1-2003.

2. The facts in brief are that the petitioner is an office bearer of the Society registered as Shri Muddu Venkat Narayan Rao Memorial School Society. The election of the Society was to be held on 5-1-2003 and for that purpose the meeting was called on 3-11-2002. Annexure P-8 is the document in that regard. It is said that the election was accordingly held on 5-1-2003 as per Annexure P-9 and the list of office bearer was submitted by the Secretary as per Annexure P-10. Annexure P-11 is the certificate issued by the Assistant Registrar under Section 27 of the Society Registrikaran Adhiniyam, 1973 (hereinafter referred to as the 'Adhiniyam' in short) dated 15-1-2003. Respondent Nos. 4 to 11 filed an appeal under Section 40 of the Adhiniyam on 17-1-2003 before the Bharsadhak Adhikari stating that the Registrar, Firms and Societies, is on leave and now the State is only the alternative forum. It was stated that the opportunity of hearing was not afforded to them in the general meeting held on 5-1-2003. The Bharsadhak Adhikari, who is the Minister, entertained the appeal and passed an order on 17-1-2003 itself. It is staled that the Assistant Registrar was called for by the Bharsadhak Adhikari.

3. Section 32 of the Adhiniyam relates to enquiry and settlement of dispute, which is quoted below:--

"32. Enquiry and settlement of disputes.-- (1) The Registrar may, on his own motion or on an application made under subsection (2) either by himself or by a person authorized by him, by order in writing, hold an enquiry into the constitution, working and financial conditions of a society.

(2) An enquiry of the nature referred to in Sub-section (1) shall be held on the application of--

(a) a majority of the members of the governing body of the society; or

(b) not less than one-third of the total number of members of the society.

(3) The Registrar or the person authorized by him under subsection (1) shall for the purpose of an enquiry under this section have the following powers, namely :--

(a) he shall at all times have free access to the books, ac counts, documents, securities, cash and other properties belonging to, or in the custody of, the society and may summon any person in possession, or responsible for the custody of any such books, accounts documents, securities, cash or other properties to produce the same, if they relate to the head office of the society at any place at the headquarter thereof and if they relate to any branch of the society, at any place in the town wherein such branch thereof is located or in his own office;

(b) he may summon any person who he has reason to believe has knowledge of any of the affairs of the society to appear before him at any place at the headquarters of the society or any branch thereof or in his own office and may examine such person on oath; and

(c) (i) he may notwithstanding any regulation or bye-law specifying the period of notice for a general meeting of the society, require the officers of the society, call a general meeting of the society at such time at the head office of the society or at any other place at the headquarter of the society and to determine such matters as may be directed by him and where the officers of the society refuse or fail to call such a meeting, he shall have power to call it himself;

(ii) any meeting called under Sub-clause (i) shall have all the powers of a general meeting called under the regulations or bye-laws of the society and its proceedings shall be regulated by such bye-laws.

(d) when an enquiry is made under this section the Registrar shall communicate the result of the enquiry to the society. The decision of the Registrar shall be binding on all parties concerned."

4. Section 40 of the aforesaid Adhiniyam relates to preference of an appeal, which is quoted below:-
















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