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Madras High Court
RAMAMURTI
S.Krishnaswamy - Appellant
Versus
South India Film Chamber of Commerce - Respondent
Decided On : 07/03/1967
SOCIETIES REGISTRATION ACT - SOUTH INDIAN FILM CHAMBER OF COMMERCE - ELECTION OF OFFICE BEARERS - IRREGULARITIES AND ILLEGALITIES - INTERIM INJUNCTION - BALANCE OF CONVENIENCE - CONDUCT OF THE PLAINTIFF - ACQUIESCENCE AND WRONGFUL CONDUCT - DISMISSAL OF THE APPLICATION.
Fact of the Case:
The plaintiff, a general manager of a film production company and an associate member of the South Indian Film Chamber of Commerce (Chamber), contested for the post of Secretary in the Chamber's election but lost. He filed a suit seeking a declaration that the election of certain office bearers was illegal and ultra vires, and an injunction restraining them from holding office. The plaintiff alleged various irregularities and illegalities in the election process, including the enrollment of unqualified members, improper authorization of representatives, and false impersonation. The defendants, the elected office bearers, filed counter-affidavits denying the allegations and arguing that the plaintiff was guilty of acquiescence and had not come to Court with clean hands. The plaintiff applied for an interim injunction to restrain the office bearers from functioning until the suit was decided.
Finding of the Court:
The court held that the plaintiff had not made out a strong prima facie case to justify the grant of an interim injunction. The court found that the plaintiff had acquiesced in the alleged irregularities and illegalities by participating in the election and contesting for a seat, and that he had not raised any objections at any earlier stage. The court also found that the balance of convenience was in favor of the defendants, as an interim injunction would paralyze the functioning of the Chamber and cause irreparable harm to its members. The court further held that the plaintiff's conduct in acquiescing in the alleged irregularities and illegalities disentitled him from the discretionary relief of an interim injunction.
Issues: 1. Whether the plaintiff had made out a strong prima facie case to justify the grant of an interim injunction. 2. Whether the balance of convenience was in favor of the plaintiff or the defendants. 3. Whether the plaintiff's conduct in acquiescing in the alleged irregularities and illegalities disentitled him from the discretionary relief of an interim injunction.
Ratio Decidendi: 1. To obtain an interim injunction, the plaintiff must make out a strong prima facie case, showing a likelihood of success at trial and irreparable harm if the injunction is not granted. 2. The balance of convenience must be considered, weighing the harm to the plaintiff if the injunction is not granted against the harm to the defendant if the injunction is granted. 3. A plaintiff who has acquiesced in or condoned the alleged irregularities or illegalities cannot come to Court with clean hands and is not entitled to the discretionary relief of an interim injunction.
Final Decision: The court dismissed the plaintiff's application for an interim injunction and directed that the suit be posted for trial and disposal within two months. The court also ordered the defendants to file their written statements within two weeks and the plaintiff to file his reply within three weeks. The case was posted for final hearing and disposal on a specific date. The court further ordered that the documents seized by the Commissioner be returned to the defendants, except for the voters' list, and that the Chamber pay an additional sum of Rs. 250/- to the Commissioner as remuneration.
ORDER :- Applicant in Applications Nos. 1215 to 1217 of 1967 is the plaintiff in the suit, C. S. No. 99 of 1967. Application No. 1217 of 1967 was filed for the appointment of a Commissioner for seizure of some documents and records of the 1st defendant Society and the Advocate Commissioner appointed by this Court has submitted his report after carrying out the warrant of commission. There is nothing further to be done in that matter.
2. Application No. 1215 ol 1967 is for an interim injunction restraining respondents 1, 4 and 5 from holding a meeting on 21-6-1967 for co-opting a President, a Vice-President and five other members of the committee pending disposal of the suit. Application No. 1216 of 1967 is for an interim injunction restraining the first defendant Society from allowing the office-bearers elected at the general body meeting on 11-6-1967 from holding their offices. In both the applications the order of interim injunction was passed by this Court on 21-6-1967 and the respondents aggrieved by the said order have applied for vacating the interim orders passed by this Court by means of Applications Nos. 1227 and 1228 of 1967 respectively.
3. The facts which led up to the present suit and the applications aforesaid may briefly be stated. The first defendant which is a Registered Society under the Societies Registration Act is the South Indian Film Chamber of Commerce. It was founded in 1939, its main objects being encouragement and development of the film industry and the solution of problems connected with it. The Chamber is governed by its Memorandum of Association and Rules (hereinafter referred to as the Rules) with regard to all its activities including the election or nomination of its officebearers. The principal office-bearers of Society (hereinafter referred to as the Chamber) are the President, two Vice-Presidents, two Honorary Secretaries, one Treasurer and twenty-two committee members. These office-bearers are elected every year at a general body meeting convened for that purpose.
With a view to properly and adequately safeguard the interests of members having varied and different interests in the film industry, the members of the Chamber have been classified under the following groups : Studio Owners, Producers, Distributors, Exhibitors and Associates and out of the twenty-two committee members, two members are nominated while the twenty members of the Executive Committee are given representation as shown hereunder :
Studio group 3
Producers' group 7
Distributors' group 3
Exhibitors' group 7
There are about 1600 members on the rolls of the Chamber. This year the general body meeting, after due publication and notice (as required by the rules) was convened on Sunday the 11th of June, 1967, in the premises of the Chamber at 10 A. M. and 676 members attended and participated at the meeting Sri Nagi Reddy who had been the President of the Chamber for the past several years was elected as the President this year too, he having secured 344 votes as against his rival candidate one Subbaraman who secured 321 votes, but Shri. Nagi Reddy resigned from his office. Of the two Vice-Presidents unanimously elected Sri. A. L. Srinivasan also resigned, with the result that there is at the moment only one Vice-President for the Chamber Mr. Sunderlal Mehta who is the second defendant in the suit. The third defendant was unanimously elected as the Treasurer. With regard to the office of Secretaries, there were four candidates and defendants 4 and 5 were elected as Secretaries they having secured 359 and 356 votes respectively as against the other two contesting candidates, the plaintiff who secured 292 votes and D. Ramanujam who secured 303 votes. Defendants 6 to 12 are seven members elected from the producers' group out of the 11 members who contested in the election. Defendants 13 to 15 are the members representing the Studio group who were elected unanimously. Defendants 16 to 21 are members representing the Exhibitors
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