IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J.
Paranjothi Gnanaoli Peedam – Petitioner
Versus
The Inspector General of Registration, Chennai – Respondent
W.P. No. 31125 of 2017
Decided On : 20-01-2022
Tamil Nadu Societies Registration Act, 1975 - Section 24, 41, 41(1) - Writ of Certiorarified Mandamus - Dissolution of Registered Societies and adjustment of their affairs - Deed of Transfer of Management of Society - Seeking for issuance of a Writ of Certiorarified Mandamus - Petitioner is a Society registered under the Tamil Nadu Societies Registration Act, 1975 - Society, by its resolution, have decided to dissolve it and transfer the management of the Society along with its property to and in favour, which is a Public Charitable Trust registered under the Indian Trusts Act - Issue with regard to the transfer of properties and take over of the management of the dissolved Society to and in favour of the Trust is permissible in terms of by-laws and also in terms of the Section 41 of the Act. (Para 8).
Finding of the Court: There is a serious flaw in the decision making on the part of 2nd respondent in passing impugned order - 2nd respondent failed to take into consideration of Section 41(1) of the Act r/w by-laws of the Society, in present case, after all the petitioner has only presented a Deed of Transfer of management of the dissolved Society to and in favour of the Trust, wherein, the petitioner has not sought for any transfer of properties of dissolved Society, in which case, this Court does not find any impediment for the 2nd respondent to register Deed of Transfer of Management of Society - Reasons assigned by the 2nd respondent vide impugned order, for rejection to register the Deed of Transfer of Management of Society, cannot be sustained and the impugned order is liable to be set aside.
Result- Petition allowed.
ORDER :
1. This Writ Petition has been filed by the petitioner, seeking for issuance of a Writ of Certiorarified Mandamus, to call for the records of the 2nd respondent dated 07.06.2017 relating to Na. Ka. No. 2286/E/2015 and quash the same and direct the 2nd respondent to register the Deed of Transfer of Management of Society dated 05.06.2017 with the Annexure thereto.
2. The petitioner namely, Paranjothi Gnanaoli Peedam is a Society registered under the Tamil Nadu Societies Registration Act, 1975 (hereinafter called as ‘the Society’). The Society, by its resolution dated 12.01.2016, have decided to dissolve it and transfer the management of the Society along with its property to and in favour of Paranjothi Gnanaoli Yagna Peedam, which is a Public Charitable Trust registered under the Indian Trusts Act (hereinafter called as ‘the Trust’). According to the petitioner, the said Trust also passed a resolution at its meeting dated 04.01.2016 to take over the management of the society with its property.
3. Under these circumstances, the petitioner presented an application along with a deed of Transfer of Management of Society dated 05.06.2017 to the 2nd respondent for the purpose of registration. However, the 2nd respondent has passed the impugned order dated 07.06.2017, thereby rejecting the Deed of Transfer of Management of the Society on the ground that the properties of the dissolved Society cannot be transferred to a Trust except to a Society with the same objects.
4. According to the petitioner, in terms of the by-laws No. 24, in the event of the dissolution of the Society, the properties can be transferred either to a Society or to any other entities, which are having similar objects of the Society. Therefore, Mr. M.K. Kabir, learned Senior counsel for the petitioner submits that in terms of the Section 41 of the Tamil Nadu Societies Registration Act (hereinafter called as 'the Act'), the petitioner is also permitted to transfer the properties as per the resolution passed by the Society in accordance with the by-laws. Therefore, he submitted that in terms of the Section 41 of the Act r/w By-laws No. 24, they have not transferred the properties, but only they wanted to transfer the Management of the Society alone. However, the 2nd respondent misconstrued that by virtue of the Deed of Transfer of Management, the properties of the society will also get transferred, the petitioner intended only to transfer the management of the Society to a Trust by virtue of the Deed of Transfer of Management and thereby refused to register the Deed of Transfer of Management. In such circumstances, without having any other option, the petitioner has filed this writ petition.
5. On the other hand, Mr. R. Vigneshwaran, learned Government Advocate appearing for the respondents, while reiterating the same reasons as cited in the impugned order, would contend that the petitioner has intended to transfer the properties of the dissolved Society to and in favour of the Trust, which is not permissible. The properties can be transferred only to other Society/Trust, which is having the similar objects. A detailed counter affidavit has also been filed on behalf of the 2nd respondent, wherein also mentioned the same reasons in support of the impugned order. Therefore, he submits that the present writ petition is liable to be dismissed.
6. I have given due consideration to the submissions made by the learned counsel appearing for the petitioner as well as the respondents and on perusal of the documents available on records, it is clear that the petitioner is a Society registered under the Act. The petitioner Society has passed a resolution dated 12.01.2016 to dissolve the Society and transfer the management of the Society along with its properties to and in favour of the Trust, called Paranjothi Gnanaoli Yagna Peedam. In this regard, it is relevant to refer Section 41(1) of the Tamil Nadu Societies Registration Act, which reads as under:
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