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2018 Supreme(Del) 1841

IN THE HIGH COURT OF DELHI AT NEW DELHI
PRATHIBA M. SINGH, J.
The Young Mens Christian Association of Ernakulam & Ors. - Plaintiffs
Versus
National Council Ymcas of India - Defendant
CS (OS) 148 of 2018
Decided On : 19-07-2018

Advocates:
Advocate Appeared:
For the Plaintiffs : Mr. Jayant Bhushan, Mr. P.I. Jose, Mr. Shashank Mishra
For the Defendant : Mr. Amit Mahajan, Mr. Sunil J. Mathews, Mr. Sabah Iqbal Siddiqui, Mr. Usman Ghani Khan, Mr. Aashish Bhatti

Headnote:

Arbitration & Conciliation Act, 1996 - Section 8 - Administration of a trust - Dispute - Scope of Arbitration - Framing of a scheme - Looking into the overall administration of a trust which is created for a public purpose both of charitable and a religious nature - Same is not an arbitrable dispute - They are administering a largenumber of immovable properties and movable assets - Held, dispute is not arbitrable.

Civil Procedure Code, 1908 - Section 92 - Election - Independent election officer - Appointment of observer - Elections to the Defendant are due shortly - Process has already started - Some important requirements have been deleted from the same - Lists of members are also drastically different in respect of some of the member organizations - It is not clear as to how many members have been held to be in default - Apprehension expressed by the Plaintiffs is that changes are being made at the membership level in order to ensure that a favourable final result is obtained - Apprehensions raised by the Plaintiffs do not lack basis - Any changes in the list of members will have an impact on the final electoral result - Held, it is appropriate to appoint an independent observer to supervise and conduct the elections already scheduled.

Civil Procedure Code, 1908 - Section 92 - Suit by the society - Grant of leave - Case is directed to be registered - Plaintiffs are members of the Defendant - All have taken the court through various documents to show that all is not well in the administration and management of the Defendant - Commercialization of member YMCAs' properties - Various amendments proposed to the Memorandum, Rules & Regulations - Changes in membership list - Suspension of member YMCAs - Court is not commenting on the merits of the various allegations - Counter allegations require to be seen after completion of pleadings - Application allowed - Suit is directed to be registered.

JUDGMENT :

Prathiba M. Singh, J.

I.A. 8699/2018 (for filing of additional documents)

1. The additional documents filed by the Plaintiffs are taken on record, subject to being proved in accordance with law, at the time of final disposal. I.A. is disposed of.

I.A. 4736/2018 (U/s 92 CPC)

2. This is an application moved by the Plaintiffs who are various member associations of the Defendant- ‘National Council of Young Men’s Christian Associations of India’ (hereinafter ‘Defendant’). By this application, the Plaintiffs seek leave under Section 92 of the Code of Civil Procedure, 1908 (hereinafter, ‘CPC’) to file the present suit.

3. The facts in brief are that the Defendant is a society registered under the Societies Registration Act, 1860 (hereinafter, ‘Societies Registration Act’). It is a body which has about 756 member YMCAs located across the country. Some of the said members are the Plaintiffs in the present suit. The member YMCAs who have filed the present Suit are the local YMCAs located in Cochin, New Delhi, Coimbatore, Puthoor - Kerala, Kollam - Kerala, Mumbai, Jabalpur - Madhya Pradesh, Perumbavoor - Kerala.

4. It is the Plaintiffs’ case that the Defendant owns a large number of movable and immovable properties across India and holds in trust various properties of its member associations. According to the Plaintiffs, the statutory auditor, in the statement of audited accounts for the year ending 31st March, 2017 of the Defendant, raised various objections which reflect irregularities in the management of the said body. It is also alleged that the current incumbent member President is in the process of attempting to bring an amendment to the constitution of the Defendant to perpetuate himself in his position. According to the Plaintiffs, several amendments have also been proposed to enable the National General Secretary to seek a second term. The said proposed amendments were challenged in OMP 512/2017 where a sole Arbitrator was appointed to adjudicate upon the disputes.

5. The Plaintiffs further submit that the triennial elections for the National Executive of the Defendant are due to be held in September, 2018 and, in view of the various allegations against the current incumbent, some of the good intentioned members of the association came together to put forward the name of a reputed member to contest for the post of the National President. However, several of the member associations who expressed their disapproval in the happenings in the Defendant were suspended from their membership. The Plaintiffs therefore submit that the Defendant having been formed for a public, charitable purpose with specific objectives, as contained in its memorandum, deserves to be properly managed and supervised. It is the case of the Plaintiffs that due to the various allegations, apprehensions have been expressed as to the running of the Defendant under the current incumbent and his team, a scheme for management of the Defendant deserves to be framed under Section 92 of the CPC. Accordingly, leave is sought under Section 92 of the CPC to institute the present suit. The reliefs sought for in the suit are;

“In the light of the above mentioned facts and circumstances, it is most respectfully prayed that this Hon’ble Court may kindly be pleased to pass a decree for the following:

A. Restraining the Defendant Society and its office bearers permanently from dealing with any immovable property of the defendant society without obtaining permission of the court under section 92 (f) of Code of Civil Procedure, 1908.

B. A decree directing an open and independent accounts and enquiries relating to all transactions including those of immovable properties of the Defendant Society and the correctness and validity of affiliation certificates issued from the year 2008 till date under the supervision of this Hon’ble Court and pass a declaratory decree nullifying a

























































































































































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