SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2017 Supreme(Ker) 83

IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.N. RAVINDRAN & A.M. BABU, JJ.
PROF. MEERAN MALUK MOHAMMED.S AND ORS. – APPELLANTS
Versus
THE MUSLIM ASSOCIATION THIRUVANANTHAPURAM – RESPONDENTS
F.A.O.No.7 of 2017
Decided On : 14-02-2017

Advocates Appeared:
For the Appellant : ADVS. SRI. P.B. KRISHNAN, SRI. P.M. NEELAKANDAN, SRI. P.B. SUBRAMANYAN, SRI. SABU GEORGE, SRI. S. NITHIN (ANCHAL)
For the Respondent: ADV. SRI. LIJU. V. STEPHEN, ADV. SRI. T. KRISHNANUNNI (SR.)

The main legal point established in the judgment is the requirement to establish a prima facie case and cause of action for granting leave under section 92(1) of the CPC, and the applicability of order VI rule 17 CPC for amending pleadings.

Headnote:

Trust - Leave to sue under section 92(1) of CPC - Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 - Act XII of 1955 - Summary: The court considered the appellants' allegations of mismanagement, misconduct, and misappropriation of funds against the respondents under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955. The court analyzed the requirements for granting leave under section 92(1) of the CPC and the necessity of establishing a prima facie case and cause of action. The court also discussed the applicability of order VI rule 17 CPC for amending pleadings and the consideration of interlocutory applications before granting leave. The court remanded the case back to the lower court for further consideration.

Fact of the Case:

The appellants sought leave to sue under section 92(1) of the CPC, alleging mismanagement, misconduct, and misappropriation of funds by the respondents under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955. The respondents opposed the petition, contending that the 1st respondent was not a trust and the original petition was dismissed by the lower court.

Finding of the Court:

The court found that the appellants had a prima facie case and cause of action to obtain leave under section 92(1) of the CPC, provided the 1st respondent is a trust of a charitable or religious nature. The court also discussed the necessity of amending pleadings and the consideration of interlocutory applications before granting leave.

Issues: The main issues revolved around the appellants' allegations of mismanagement, misconduct, and misappropriation of funds against the respondents, and the requirement to establish a prima facie case and cause of action for granting leave under section 92(1) of the CPC.

Ratio Decidendi: The court's decision was based on the analysis of the appellants' prima facie case, cause of action, and the necessity of amending pleadings under order VI rule 17 CPC. The court also discussed the consideration of interlocutory applications before granting leave and the applicability of section 92(1) of the CPC.

Final Decision: The appeal was allowed, the impugned order was set aside, and the original petition was remitted back to the lower court for further consideration.

JUDGMENT :

A.M. Babu, J.

1. Appellants are the petitioners in O.P.(Trust)308 of 2016. That was an original petition on the file of the District Court, Thiruvananthapuram. It was filed to seek leave of the court under section 92(1) of the Code of Civil Procedure (CPC for short). Respondents opposed the petition. Learned Second Additional District Judge refused to grant leave and dismissed the petition. The appeal is preferred against the said order dated 12.1.2017.

2. We, in this judgment, refer to the parties as they are shown in the memorandum of appeal.

3. A few facts are admitted. Admitted facts are stated below :

The 1st respondent is an association registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 (Act XII of 1955 for short). Respondents 2 to 4 are respectively the secretary, president and treasurer of the 1st respondent. Appellants are life members of the association. They are at present members of the executive committee.

4. Appellants sought leave to sue to seek the following reliefs:

To remove respondents 2 to 4 from the respective offices they hold. To appoint new trustees to the executive committee. To direct respondents 2 and 3 to render accounts. To settle a scheme for the 1st respondent.

5. The allegations in the petition are briefly stated below :

Respondents 2 to 4 are acting against the provisions of the byelaws of the 1st respondent. There is no provision to nominate members to the executive committee. But respondents 2 to 4 have nominated 14 persons who are their men. Various sub-committees are to be formed for the proper functioning of the 1st respondent and the institutions run by it. No sub-committee shall consist of less than five members and more than seven members including the chairman. But jumbo sub-committees have been constituted to include the supporters of the 3rd respondent. There shall be a managing council for the administration of the engineering college run by the 1st respondent. Members to the managing council shall be elected by the executive committee. But two persons have been nominated to the council. The managing council shall hold at least one meeting every month. But only two meetings were held during the last 14 months. This has affected the day-to-day management and functioning of the engineering college. The general body meeting held on 30.6.2007 resolved not to induct new members. But respondents 2 to 4 took hasty steps to induct new members to hijack the general body. An internal audit committee shall be appointed by the general body to audit the accounts of the 1st respondent and the engineering college. Such an audit committee was appointed by the general body. The committee audited the accounts. The audit report shows a loss of 148 lakhs rupees to the 1st respondent. The audit disclosed manipulation of accounts and misappropriation of huge amounts by respondents 2 to 4 in connivance with their supporters in the executive committee. The audit report was rejected by respondents 2 to 4 on flimsy grounds. The budget placed before the general body at its meeting held on 24.9.2016 shows a huge loss of 275 lakhs rupees to the 1st respondent. The loss was occasioned owing to the mismanagement of the funds of the association.

6. Respondents 1, 2 and 4 jointly and the 3rd respondent separately filed statements of objections. The contentions are identical and go as under : The 1st respondent is a society registered under Act XII of 1955. It is not a trust. Therefore the petition for leave filed under section 92(1) CPC is not maintainable. All the allegations in the petition are false. The ban imposed against the induction of new members ceased to have force with effect from 9.6.2011. The report of the internal audit committee was in violation of the provisions of the byelaws. The report was not signed by all the three members. The executive committee at its meeting held on 13.11.2016 rejected the report. The accounts of the association are

























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top