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2021 Supreme(Mad) 3297

V.PARTHIBAN
Prithiviraj Jagannathan, Councillor, the Federation of Motor Sports Clubs of India – Appellant
Versus
Federation of Motor Sports Clubs of India (FMSCI) represented by its Secretary-General – Respondent


Advocates:
Advocate Appeared:
For the Applicant : Mr. H. Karthi Seshadri
For the Respondent: Mr. S.R. Rajagopal, Senior Counsel for M/s. Vijayalakshmi Rajagopal, Mr. Arvindsrevatsa

Judgement Key Points

The judgement indicates that a suit against a private sports club for declaration or injunction is maintainable when the plaintiff has a sufficient legal interest and the suit involves the protection of individual rights related to the club's functioning. The court recognizes that a nominee or representative of the club can maintain a suit to challenge decisions or actions that are alleged to be beyond the authority of the club's governing documents or that are otherwise illegal or arbitrary.

Furthermore, the court emphasizes that the validity of the plaintiff's standing depends on whether the club's nomination or membership status remains valid and whether the club has been properly represented in the proceedings. If the club itself has not been removed from its membership or disqualified under the governing rules, the individual representing it may have a right to maintain the suit independently.

The judgement also highlights that procedural requirements, such as obtaining leave under specific procedural rules, can be bypassed if the plaintiff's individual rights are directly affected and if the suit is based on the plaintiff's personal capacity as a duly elected or nominated member.

In summary, the court appears to support the view that legal action in the form of a suit for declaration or injunction against a private sports club is permissible when the individual has a direct, personal interest and the club's legal or administrative status remains intact, even if the club's formal registration or recognition is questioned.


ORDER :

The applicant herein is the plaintiff in the suit. The suit has been filed for declaring the decision of the Council of the 1st defendant/1st respondent dated 26.10.2020 under Agenda item No.17 communicated to the applicant/plaintiff through e-mail dated 17.11.2020 preventing/barring the applicant/plaintiff from acting and functioning as a Councillor of FMSCI on the ground of the status of CASC in respect of its registration is illegal, null and void and for permanent injunction restraining the respondents/ defendants from in any manner excluding the participation of the applicant/plaintiff in the Council meetings or any other Sub-Committee meetings of the 1st defendant/1st respondent so long as he is an elected Councillor in the 1st defendant/1st respondent.

2. The brief facts which gave rise to the filing of the Suit and the present Original Application are stated hereunder.

    (a) The applicant/plaintiff is one of the Councillors duly elected to hold office in the 1st respondent/ defendant Company. The 1st respondent/ defendant is the Apex body in a Federation of Motor Sports Clubs of India which is a Company incorporated under Section 25 of the Companies Act, 1956. The Compan

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