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2003 Supreme(Mad) 1036

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P.D. DINAKARAN
Chellappa President - Appellant
Versus
The Secretary to Government - Respondents
Writ Petition No.19453 of 2003
Decided On : 15 July 2003

Advocates Appeared:For the Petitioner:Mr. Hari Hara Rajan, Advocate. For the Respondents: R1-R3 Mr.M.S. Palanisamy, AGP.

The Registrar has the power to inquire into the affairs of a registered society and take appropriate action if the society contravenes the provisions of the Act or conducts business fraudulently.

Headnote:

Registrar's Power - Inquiry into Affairs of Registered Society - The court directed the competent authority to inquire into the representations of the petitioner and pass appropriate orders on merits, in accordance with the provisions of the Tamil Nadu Societies Registration Act.

Fact of the Case:

The petitioner made a complaint against the fourth respondent regarding mismanagement and misappropriation of funds of the Association, seeking a writ of Mandamus to forbid the fourth respondent from convening meetings not in accordance with the by-laws.

Finding of the Court:

The court directed the competent authority to inquire into the representations of the petitioner and pass appropriate orders on merits within eight weeks.

Issues: Mismanagement and misappropriation of funds, legality of meetings, and the authority of the Registrar to inquire into the affairs of the registered society.

Ratio Decidendi: The Registrar is empowered to inquire into the affairs of a registered society and pass appropriate orders if the society contravenes the provisions of the Act or conducts business fraudulently.

Final Decision: The writ petition is disposed of accordingly, with no costs. WPMP No.24287 of 2003 is closed.

Judgment :-

The petitioner, President of The Tamil Nadu Stainless Steel Utensils Manufacturers Association, by his representations dated 4.7.2003 and 11.7.2003, made a complaint against the fourth respondent with respect to certain serious allegations relating to mismanagement and misappropriation of funds of the Association, which is registered under the Societies Registration Act and complaining that the General Body Meeting held on 24.4.2003, extraordinary meeting held on 12.6.2003 and 30.6.2003 are illegal, contrary to the bye laws of the Societies, requested the Registrar to enquire into the same.

2. In spite of such representations, the fourth respondent had convened another Executive Meeting of the Association on 14.7.2003 and also proposed to convene Executive Meetings on subsequent dates. Hence, the petitioner seeks a writ of Mandamus directing respondents 1 to 3 to forbear the 4th respondent from convening the executive Committee and general body meeting except by virtue of the by-laws of the Tamil Nadu Stainless Steel Utensils Manufacturers Association.

3. Mr.M.S. Palanisamy, learned Additional Government Pleader takes notice

4. Section 36 of the Tamil Nadu Societies Registration Act reads as follows.

" Section 36:

Power of Registrar to inquire into the affairs of registered society.- (1) The Registrar may, of his own motion or on the application of a majority of the members of the committee of a registered society or on the application of not less than one-third of the members of that registered society, or, if so moved by the District Collector hold or direct some person authorised by the Registrar by order in writing in this behalf to hold, an inquiry, into the constitution, working and financial condition of that registered society.

(2) An application to the Registrar under sub-section (2) shall be supported by such evidence as the Registrar may require for the purpose of showing that the applicants have good reason for applying for an inquiry.

(3) The Registrar may require the applicants under sub-section (1) to furnish such security as he thinks fit for the costs of the proposed inquiry, before the inquiry is held.

(4) All expenses of, and incidental or preliminary to, the inquiry shall, where such inquiry is held -

(a) on application, be defrayed by the applicants therefor or out of the assets of the registered society or by the members or officers of the registered society, in such proportions as the Registrar may, by order in writing, direct; and

(b) on the District Collector's or Registrars motion, be defrayed out of the assets of the registered society, and shall be recoverable as an arrear of land revenue.

(5) An order made under sub-section (4) shall, on application, be enforced by any Civil Court having local jurisdiction in the same manner as a decree of such court.

(6) A person holding an inquiry under this section shall at all reasonable times have free access to all the books, accounts and documents of the registered society and the officers of society to produce such books, accounts and documents and furnish such statements and other information in relation to its business as he may direct.

(7) It shall be the duty of all persons who are or have been officers of the registered society to furnish the inquiring officer with all the books, accounts and documents in their custody or power relating to the registered society.

(8) A person holding an inquiry under this section may summon any person who, he has reason to believe, has knowledge of any of the affairs of the registered society and may examine such person on oath and may summon any person to produce any books, accounts or documents belonging to him or in his custody if the person holding the inquiry has reason to believe that such books, accounts or documents contain any entries relating to transactions of the registered society.

(9) The result of the inquiry shall be communicated to the registered society and to the applicants, if any, and if the Registra



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