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IN THE HIGH COURT OF JUDICATURE AT MADRAS
V. PARTHIBAN, J.
Babu Daniel – Appellant
Versus
The Madras Medical Mission, Rep. by its Honorary Secretary, Mogappair East, Chennai & Others – Respondents
Original Application No. 251 of 2021 in C.S.No.59 of 2021
Decided on : 01-10-2021
Civil Procedure Code, 1908 - Order XXXIX, XIV Rules 1 ,8 and 2 - Constitution of India.,1950 - Article 243-ZL , 19(1)(c) and 14 - Tamil Nadu Societies Registration Act, 1975 - Sections 26 and 28 - 2006 (Amendment) Act - ULC Act, - Section 19 - Tamil Nadu Societies Registration Rules, 1978 - Rules 25,3 and 27 – Suit for grant - Interim injunction - Whether third respondent herein and others are entitled to call for EGM at all in view of pending suit(s) before Court touching upon various aspects of dispute qua parties - As a corollary, another crucial consideration is whether at instance of suspended member of Society suspension having been upheld by Court's order though subsequently after calling of EGM, vide impugned notice would invite disapproval from Court or not - Whether any member was fully aware of the contents of the letter or not – Whether clear days' notice was given or not, before fixing the date of EGM - Held, Rival contentions have been to effect there was a clear days' notice available as meeting was slated only on and on other hand it has been contended that e-voting had remained open from onwards itself and if Court date is taken into consideration there was no clear days' notice Court is unable to appreciate said contention at stage as it is always open to plaintiff to implead necessary and proper parties if need arises in future - In any event such submission at Court stage certainly cannot tilt scales of consideration of balance of convenience in favour of third respondent herein - Court contentions raised on behalf of applicant in regard has some force - Enclosure of blank sheets containing only signatures of members, attached to requisition letter calling for EGM by third respondent raises a reasonable doubt as - Requisition letter as such contains the signature of third respondent alone and all others have affixed their signatures in blank sheets - Argument that no affidavit is filed by any signatory to letter claiming ignorance of contents of letter and therefore allegation is contrary to fact or records may be a good defence at time of trial of suit - But prima-facie obtaining signatures in blank sheets from all members sponsoring registration nevertheless gives rise to a reasonable and genuine inference against reliability of sponsorship of members in calling for subject EGM - Allowed
JUDGMENT :
(Prayer: Judge's Summons under Order XIV Rule 8 of the Original Side Rules read with Order XXXIX Rules 1 and 2 of the Civil Procedure Code, 1908, and Original Application (O.A). No.251 of 2021 (in Civil Suit (C.S).No.159 of 2021), filed praying to grant interim injunction restraining the third respondent/third defendant from conducting the EGM on 23.04.2021 between 4 to 5 p.m. through video-conferencing, pending disposal of the suit.)
The applicant herein is the plaintiff in the suit in C.S.No.159 of 2021. The respondents are the defendants in the said suit.
2. The abovesaid suit has been field for the following reliefs:
(ii) for awarding costs of the suit.
3. Since the issue involved in this application relates to conduct of the EGM on 23.04.2021, the other issues are not dealt with herein.
4. The brief facts which gave rise to the filing of the present application and the suit, are as follows:
(b) The first respondent-Society was registered on 12.01.1982 under the Tamil Nadu Societies Registration Act, 1975 (for brevity, "the Act, 1975") and has been engaged in various charitable activities. The objects of the Society are primarily to establish hospitals, conduct research studies in Medicine and run educational institutions including Medical Colleges. The first respondent-Society is governed by its Bye-Laws, which have been framed in terms of the Act, 1975.
(c) One Dr.K.Jacob was elected as Honorary Secretary on 15.01.2009 and Mr.Cherian Abraham, another life member of the Society, was elected as Honorary Treasurer on 09.10.2010 by the Governing Board of the first respondent-Society. The aforesaid persons had been signatories to all the financial matters and decisions taken in the administration of the first respondent-Society, being at the helm of affairs at the relevant period in the management of the Society. Many members expressed their dis-satisfaction about the functioning of the above two office bearers, as it was felt that there was no accountability and transparency in their activities while managing the affairs of the first respondent-Society.
(d) On 17.09.2017, a Money Committee was appointed by the General Body of the Society to enquire into all the money matters of the Society. One Dr.Suja Issac was appointed as its Convenor, vide letter dated 19.09.2017. A report was submitted by the Money Committee and Extraordinary General Meeting (for short, 'the EGM') of the Society was convened on 22.06.2019. The report pointed out a prima-facie irregularities amounting to Rs.186.63 Crores in the management and administration of the Society during the period of the above named two office bearers. The Governing Board appeared to have unearthed, besides the irregularities as found by the Money Committee, various other acts of mal-administration while the above mentioned office bearers were at the helm of affairs of the Society. In the circumstances, two resolutions were passed in the meeting, one, appointing five-member Audit Committee to conduct forensic audit into financial affairs of the Society, the suspension of Dr.K.Jacob and Mr.Cherian Abraham, the Honorary Secretary and Treasurer respectively.
(e) In pursuance of the resolution of the General Body in the EGM, dated 22.06.2019, the second respondent, vide communication dated 19.10.2020, informed the members concerned that they were placed under suspension pending enquiry by the Commission of Enquiry headed by a retired Judge of this Court, which wa
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