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2008 Supreme(Mad) 1919

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE V. DHANAPALAN
The Chennai Kancheepuram Thiruvallur Districts Film Distributors Association, represented by its Secretary
Versus
The District Registrar, Central Madras & Others
Writ Petition No.43643 of 2006
Decided on : 23-06-2008

Advocates Appeared:
For the Petitioner:T.V. Ramanujam, Senior Counsel, M/s. Waraon & Sai Rams, Advocates.
For the Respondent:R1, Mrs. Bhavani Subbarayan, Addl. Govt. Pleader, R2 to R4, R7, R11 and R12, Mrs. Hema Sampath, Senior Counsel, R. Subramaniam, R6, B.S. Gnanadesikan, R5 and R8 to R10, K.V. Sundarrajan, Advocates.

The Registrar has the authority to conduct an enquiry into the affairs of a registered society, even on his own motion, based on credible information.

Headnote:

Registrar's Enquiry - Tamil Nadu Societies Registration Act 1975 - Section 36

Fact of the Case:

The petitioner, a society registered under the Tamil Nadu Societies Registration Act 1975, filed a Writ Petition challenging the order of the first respondent, the Registrar, directing the petitioner to collect misappropriated amounts and reinstate removed members.

Finding of the Court:

The Court dismissed the Writ Petition in relation to the first direction but allowed it in relation to the second direction, directing the parties to pursue their remedy before the Civil Court.

Issues: The main issue was whether the Registrar had the authority to conduct an enquiry into the affairs of the registered society and issue directions to the society.

Ratio Decidendi: The Court held that the Registrar had the power to conduct an enquiry into the constitution, working, and financial condition of a registered society, even on his own motion, based on credible information. However, the Court also found that the second direction, directing the reinstatement of removed members, was inappropriate given the pendency of similar issues before the Civil Court.

Final Decision: The Writ Petition was dismissed in relation to the first direction and allowed in relation to the second direction, directing the parties to pursue their remedy before the Civil Court.

Judgment :-

This Writ Petition has been filed, praying for issuance of a writ of certiorarified, to call for the records of the first respondent in proceeding No.10417/E1/2004, dated 210. 2006, and quash the same.

2. The facts, which led to the filing of this Writ Petition, are as under:

1. Petitioner is a society, registered under the Tamil Nadu Societies Registration Act 1975, bearing Registration No.l11/1982 and it was established in the year 1982, with an object to entertain and encourage the business of the film industry by coordination and cooperation with other similar associations established for the cine industry, particularly in respect of production, distribution and exhibition of the cinematographic film. Similarly, it is catering to the needs of the distributors by resolving the disputes between the producers, distributors and exhibitors, thereby protecting their interests to carry on a smooth and peaceful business. The Executive Committee of the petitioner association admits the members who carry on business as per clause No.10 of the Bye-laws of the association in the prescribed application form along with the entrance fee and the association, after a detailed verification, shall consider or reject such application submitted by the persons, who are desirous to join as members. The Executive Committee of the association is empowered under Clause No.54 of the Bye-laws to initiate disciplinary action and levy fine against its members for the anti-association activities or for the violation of the rules and regulations of the association or for the misconduct and shall remove such member from the basic membership. Similarly, Clause No.23 empowers the Executive Committee to recommend the removal of any members on the ground of anti-social activities or who have acted against the object of the association to the General Body, in which case the member whose name has been recommended to the General Body for removal of membership shall have no right, obligations and privileges as a member of the association and he shall not participate in the election of the office bearers and also shall not vote in the election.

.2. The petitioner association has been managing and administering the business of the association as per the registered Bye-laws of the association and well within the scope of the provisions of the Tamil Nadu Societies Registration Act, 1975. During the course of the management and administration, the association has taken action against some of the members, namely, the respondents 2 to 12 for their anti-association activities, by issuing show cause notice and giving due opportunity as per the Bye-laws of the association. Some of the members have challenged the said show cause notice and the resolution passed by the association before the Civil Court and failed to obtain orders in their favour. As per Clause 23 of the Bye-laws, some of the members have been removed from the rolls of membership. In view of the action taken against the respondents 2 to 12 by the association, the said members are continuously acting against the interests of the association and have given complaints after complaints to the first respondent. The petitioner association represented before the first respondent on various occasions and explained the facts and circumstances prevailed in the said complaints in detail to various District Registrars, who were assuming the office in the relevant period. However, those complaints were pending without passing any orders. Therefore, some of the members filed W.P.Nos.17581,17582 and 17583 of 2005, which were disposed of by this Court, directing the first respondent to dispose of the representations, after giving opportunity to both sides. The first respondent issued notice to the petitioner association and the petitioner association submitted all the relevant records, statement of accounts etc., as required by the first respondent, based on which, the first respondent has passed the impugned















































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