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2023 Supreme(Del) 1297

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
All India Sidbi Officers Association Delhi Unit – Appellant
Versus
Small Industries Development Bank of India & Ors. – Respondents
W.P.(C) 16885 of 2022 and CM Appls. 53505 of 2022, 56524 of 2022, 56526 of 2022
Decided On : 25-04-2023

Advocates appeared:
Mr. Arvind Saha & Mr Manish Kumar, Advocates, for the Petitioner.
Mr Rakesh K. Khanna, Senior Advocate with Mr. Aditya Pushkal Khanna and Mr. Ramya Khanna, Advocates, for the Respondent-1.
Mr. Ashutosh Dubey, Mr. Abhishek Chauhan, Ms. Vibha Mahajan and Mr. Amit P Shahi, Advocates, for the Respondent-2.

The central legal point established in the judgment is the recognition of the need for a free and fair election to resolve the dispute arising from conflicting claims within the Petitioner-Association.

Headnote:

Election Dispute - Association Recognition - Byelaws of AISIDBIOA - Section 24(2) - The court addressed the dispute arising from the election of the Managing Committee of the Petitioner-Association under Section 24(2) of the Byelaws of AISIDBIOA. The court recognized the need for a free and fair election and appointed an Election Officer to conduct the elections within the SIDBI premises.

Fact of the Case:

The dispute arose from conflicting claims of two groups within the Petitioner-Association regarding the election of the Managing Committee. This led to the formation of two alleged elected bodies, resulting in a stalemate.

Finding of the Court:

The court found that the situation of having two elected bodies within the same Association was not workable. It recognized the need for a free and fair election to resolve the dispute and appointed an Election Officer to conduct the elections within the SIDBI premises.

Issues: Conflicting claims of two groups within the Petitioner-Association, recognition of the election results, and the need for a free and fair election.

Ratio Decidendi: The court's decision was based on the recognition that two elected bodies cannot run one Association and the need for a free and fair election to resolve the dispute.

Final Decision: The court appointed an Election Officer to conduct the elections of the Petitioner-Association within the SIDBI premises, with the election to be completed within a period of three months.

JUDGMENT

Prathiba M. Singh, J. (Oral)

CM APPL. 53505/2022 (interim stay), 56524/2022 (for recall of order), 56526/2022 (exemption from filing certified copies)

1. This hearing has been done through hybrid mode.

2. The present petition has been filed by the Petitioner-All India SIDBI Officers Association (Regd.)-Delhi Unit (hereinafter, `the Association') seeking various reliefs against Respondent No. 1-Small Industries Development Bank of India (hereinafter `SIDBI').

3. In effect, the Petitioner-Association represented by Mr. Krishna Pratap Singh wants to be recognised as the duly elected body of constituting the Petitioner-Association.

4. The prayers in the writ petition are as under:

    "i. Issue a writ of Certiorari or any other appropriate writ, order or direction, to Quash/set aside the letter dated 02.11.2022 issued by the respondent no. 1.

    ii. Issue a writ of mandamus or any other appropriate writ, order or direction, directing the respondent no. 1 to recognize the result of election dated 04.10.2022 as legal and valid for all purposes.

    iii. Pass any such other and further order which is necessary in the facts and circumstances of the case."

5. The present dispute has arisen due to two competing groups of the Association represented through its President Mr. Krishna Pratap Singh and Respondent Nos. 2-11 led by Mr. Rajiv Kumar.

6. The genesis of the dispute is an election called by the Managing Committee of the Petitioner-Association vide election notice dated 1st September, 2022 which reads as under:

"Sub: Appointment of Election Committee for Election of the Managing Committee of New Delhi unit

    As discussed, this has reference to AISIDBIOA Cir. No. 01/CY2022 dated July 28, 2022, Notifying the programme for biennial Election of Managing Committees [MCs] at Various 16 local Units and GC Nominees in assigned numbers from these units (Posted on the bulletin board). In terms of section 24(2) of Byelaws of AISIDBIOA, it has been decided to appoint a Two-member Election Committee (EC) for conducting the election of office-bearers and the members of the Management Committee (MC) of New Delhi Unit of AISIDBIOA as given below for the 2-year term (September 2022 to August 2022). The EC consists of following members:

    (1) Mr. Bhanu Prakash Sharma (Returning officer)

    (2) Mr. Tulsi Das (Member)

    the election of office bearers of the MC of New Delhi unit of AISIDBIOA comprising (as under):

Name of the OfficeNumber of Posts
a.PresidentOne
b.Vice PresidentOne
c.SecretaryOne
d.Jt. SecretaryOne
e.TreasurerOne
f.Committee MemberMin. 2 to Max.5

    The EC would be handling and taking care of the entire process of election till the declaration of results and would be issuing need-based communications/intimations to all the members in this connection.

    The EC is humbly requested to take necessary steps for the entire process of proposed elections."

7. The above election notice was signed by the then Secretary Delhi Unit of the Petitioner-Association, Mr. Krishna Pratap Singh. Vide the said election notice two Election Officers, namely, Mr. Bhanu Prakash Sharma (`the Returning Officer') and Mr. Tulsi Das (`Member') were appointed for conducting the election of the office bearers and members of the Managing Committee of Petitioner-Association. The said notice itself states that this notice was issued in terms of Clause 24(2) of the Byelaws of the Petitioner-Association. The said Clauses reads as under:

    "20. LOCAL UNITS

    (i) "Unit" means a Unit of the Association at the place/s (City)/Town) where the Head Office, Zonal/Regional Office or Branch Office of the Bank is located.

    Explanation: If in a City/Town where there are more than one offices, there shall be only one Unit and members of all such offices and officers deputed in other institutions/organization within the City/Town shall form part of one single Unit.

    (ii) The day-to-day management of the local Units shall vest in a Managing Committee inter alia consisting of a President, Vice President, General Secretary an

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