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2007 Supreme(Raj) 988

High Court Of Rajasthan
Judgename : P.B. Majmudar,Munishwar Nath Bhandari
Bhartiya Lions Parisangh - Appellant
Versus
Union of India - Respondent
2733 of 2004
Decided On : 07/19/2007

Advocates Appeared:
Mr. M.R. Singhvi, Mr. Manoj Bhandari, Mr. Sushil Bishnoi, for the Petitioner.
Mr. Firoze B. Andhyarujina, Senior Advocate, along with Mr. Sanjay Kumar, Mr. Gunjan Pathak & Mr.
M.S. Singhvi, for Respondents Nos. 2 and 3.
Mr. V.K. Mathur, for Respondents Nos. 1 and 6.
Mr. K.K. Bissa, for Respondent No. 4.
Mr. R.N. Upadhyay, for Respondent No. 7.

The need for specific evidence and representations to the concerned authorities before filing public interest litigation, and the requirement to join local clubs as parties to the petition.

Headnote:

Public Interest Litigation - Charitable Institutions - Income Tax Act, FEMA, FERA, Sales Tax Laws, Societies Registration Act, Public Trust Act - The court found that the petitioner's allegations against the charitable institutions were vague and lacked specific evidence. It held that the local Lions Clubs should be joined as parties to the petition, and the concerned authorities should proceed against individual clubs in accordance with the law. The court also emphasized the need for the petitioner to make representations to the concerned authorities before rushing to the court. The petition was disposed of as the interim order had been complied with, and the court did not give any direction against the respondents.

Fact of the Case:

The petitioner, a public interest litigation filed by Bhartiya Lions Parisangh, alleged that the Association of Lions International and Lions Club International Foundation were not complying with Indian laws, resulting in loss of tax revenue and foreign currency reserves. The petitioner sought various directions from the court, including a CBI enquiry into the affairs of the respondents.

Finding of the Court:

The court found that the petitioner's allegations were vague and lacked specific evidence. It held that the local Lions Clubs should be joined as parties to the petition, and the concerned authorities should proceed against individual clubs in accordance with the law. The court emphasized the need for the petitioner to make representations to the concerned authorities before rushing to the court. The petition was disposed of as the interim order had been complied with, and the court did not give any direction against the respondents.

Issues: The issues involved whether the petitioner's allegations against the charitable institutions were substantiated and whether the local Lions Clubs should be joined as parties to the petition.

Ratio Decidendi: The court held that the petitioner's allegations were vague and lacked specific evidence. It emphasized the need for the petitioner to make representations to the concerned authorities before rushing to the court. The court also held that the local Lions Clubs should be joined as parties to the petition, and the concerned authorities should proceed against individual clubs in accordance with the law.

Final Decision: The petition was disposed of as the interim order had been complied with, and the court did not give any direction against the respondents.

Judgment

P.B. Majmudar, J.-This petition is filed by Bhartiya Lions Parisangh through its President as a public interest litigation.

2. It is a case of the petitioner that Respondent No. 2, i.e., the Association of Lions International and Respondent No. 3, i.e., Lions Club International Foundation, have failed to regulate their activities and are not complying with the Indian laws which resulted in the loss of huge tax revenue and tremendous outflow of foreign currency reserves of the country is not checked causing incalculable loss to the country. The Respondent No. 2 is an International Association of the Lions Clubs, chartered by the association itself and having its Head Office in USA. The purpose of the said association is highlighted in Para 3 of the petition. The case of the petitioner is that the Respondent No. 2 has chartered more than 4,500 Lions Clubs in India and it controls and supervises their activities through its Indian and South East Asian Office located at Mumbai. It is the say of the petitioner that the Lions Clubs in India are organized and Chartered by Lions International. It is the case of the petitioner that these Clubs are working as autonomous bodies and they do not appear to have any legal entity status registered under any Indian Laws. It is the grievance of the petitioner that unless the Lions Clubs are registered either under the Societies Registration Act or any other Law, their activities cannot be checked or monitored and that if any particular Club is found to have committed violation of any law, no action can be taken against such individual club. It is a case of the petitioner that Respondent No. 4 Lions Clubs International Foundation (known as LCIF) is so called charitable arm of the Lions International and it appears to be registered under the United State America. In Para 7 of the petition, it is averred that the petitioner after making necessary investigation and research at its own level, could obtain some vital information about the functioning of Respondent Nos. 2 to 4 and ultimately have formed a reasonable opinion that due to their activities, our country has already suffered loss of tax revenue which may be estimated more than Rs. 2000 crores to Rs. 5000 crores till financial year 2002-2003 and losing more than Rs. 100 crores per annum under the income tax law. It is also the case of the petitioner that Respondent Nos. 2 to 4 are operating in India in organized manner, have more than 1,70,000 members and is involved in the financial transactions in the range of Rs. 150 to 300 crores per annum yet none of such organizations is registered with any Government Authority or Department under the Indian laws as Income Tax law, Sales Tax laws, Societies Registration Act, Public Trust Act etc. It is also a case of the petitioner that the formation of new club procedure never gives any guidelines to get them registered with local Government Authorities and Chartered Lions Club are not allowed to have their own constitution different from the model constitution. It is also a grievance of the petitioner that the Lions International, though not registered in India, is operating its activities in India through its South East Asia Office at Mumbai under the supervision of International Secretary permanently residing in India and collection such amount towards contribution as admission charges and life membership charges etc. The case of the petitioner, therefore, is that this petition has been filed as public interest litigation, wherein it is prayed as under :

"(i) Direct the various Government Departments to submit their respective reports about the activities of the respondent Lions International, LCIF and its chartered Lions Clubs operating under their jurisdiction and ensure compliance by them of the respective Indian laws like Income Tax Act, FEMA, FERA, Sales Tax Laws, Public Trust Act and Societies Registration Act.

(ii) Direct the Respondent No. 2 Lions International and Lions Clubs char






















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