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2002 Supreme(Mad) 1325
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P.D.DINAKARAN
Dr.K.M.Cherian - Appellant
Versus
The Deputy Inspector General of Registration - Respondents
W.P.No. 35565 of 2002
Decided On : 13 November 2002
Members of a registered society are entitled to have the assistance of an expert, such as an auditor, while inspecting the books of account, based on the object and spirit of Section 29(3) of the Act.
Headnote:
Section 29(3) - Tamil Nadu Societies Registration Act - The petitioner, a member of a registered society, sought a writ of mandamus to access the books of account and minutes of meetings for scrutiny. The court held that the member is entitled to have the assistance of an expert, such as an auditor, while inspecting the books of account, based on the object and spirit of Section 29(3) of the Act.
Fact of the Case:
The petitioner, a member of a registered society, sought a writ of mandamus to access the books of account and minutes of meetings for scrutiny.
Finding of the Court:
The court held that the member is entitled to have the assistance of an expert, such as an auditor, while inspecting the books of account, based on the object and spirit of Section 29(3) of the Act.
Issues: Access to books of account and minutes of meetings for scrutiny by a member of a registered society.
Ratio Decidendi: The court interpreted Section 29(3) of the Tamil Nadu Societies Registration Act to provide accessibility to members of a registered society to inspect the books of account and minutes of meetings, and held that the member is entitled to have the assistance of an expert, such as an auditor, for scrutiny.
Final Decision: The court directed the Registrar of the Societies to permit the petitioner to have the assistance of his auditor while inspecting the books of account of the society and to inspect the books of minutes of the Society.
Placing reliance on Section 29 (3) of the Tamil Nadu Societies Registration Act, 1975, the petitioner, who claims to be the member of the Institute of Cardio - Vascular Diseases, a Society registered under the provisions of the Tamil Nadu Societies Registration Act, seeks a writ of mandamus to facilitate and enable the petitioner to access the books of account and the minutes of the meetings for a thorough scrutiny by the petitioner.
2. When the matter came up for admission on 13.9.2002, this Court passed the following interim direction:-
"In the meanwhile, the respondent is directed to consider the representation of the petitioner dated 12.9.2002 and issue appropriate orders to the concerned Society Viz., Madras Medical Mission exercising the powers conferred under Section 29 read with Section 36 of the Societies' Registration Act, of course, after hearing the concerned Society and report the orders passed, on 19.9.2002."
3. The respondent, complying with the said direction of this Court dated 13.9.2002, after giving notice to the Society and based on the no objection from the Society permitted the petitioner to inspect the books of account and the minutes of the meetings of the Society, viz., Madras Medical Mission, free of charge.
4. However, Mr. C.Ramakrishnan, learned Senior Counsel appearing for the petitioner, submits that the petitioner seeks a direction from this Court directing the respondent to permit the petitioner to have the assistance of his auditor, while inspecting the books of account, as he is not familiar to scrutinise the accounts of the Society.
5. Mr. D.Krishna Kumar, learned Special Government Pleader, fairly submits that even though there is no specific provision under the Act or Rules to permit the auditors to inspect the books of account, this Court, by order dated 18.3.1993 made in C.M.P.No. 2442/93 in O.S.A.No. 155/86, has directed the Registrar of Societies, to permit the auditor of a member, to inspect the books of account.
6. In this regard, I am obliged to extract Section 29 of the Tamil Nadu Societies Registration Act, which reads as follows:
"Section 29. Minutes of proceedings of registered society's general meetings and of its committee.
(1) Every registered society shall cause minutes of all proceedings of its general meetings, and of its committee to be entered in books kept for the purpose.
(2) Any such minute, if purporting to be signed by the Chairman of the meeting at which the proceedings were held or by the chairman of the next succeeding meeting, shall be evidence of the proceedings.
(3) The books containing the minutes aforesaid and the books of account of the registered society shall be kept at the registered office of the society and shall, during business hours be open to the inspection of any member free of charge. "
Section 29(3) of the Act alone is relevant to the issue.
7. Section 29(3) contemplates that the books containing the minutes and the books of account of the registered society shall be kept at the registered office of the Society and the said books containing the minutes and books of account shall be open to the inspection of any member free of charge during the business hours.
8. The object and spirit of Section 29(3) of the Act, in my considered opinion, is to provide accessibility to the members of the registered society to inspect the books containing the minutes and the books of account of the registered society and to make them transparent to the members of the registered society. Therefore, viewing the matter through the object and spirit of the legislature, I do not find any difficulty to hold that the member of the registered society is entitled to have the assistance of an expert, if so required, in the matter of maintenance of the accounts of the Society. Hence the request of Mr. C. Ramakrishnan, learned Senior counsel for the petitioner to permit the petitioner to have the assistance of the auditor cannot be rejected merely on the ground that there is
