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2024 Supreme(Mad) 1054

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
THE HONOURABLE MR.JUSTICE K.MURALI SHANKAR
Palani Town Viswa Brahmana Mahajana Sangam (REGD,7/1958) – Appellant
Versus
P.Thangavel – Respondent
A.S.(MD)No.160 of 2015 and M.P.(MD)No.1 of 2015 and C.M.P.(MD)No.3173 of 2018
Decided on : 09-01-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr.S.Lakshmanan
For the Respondents:Mr.G.Prabhu Rajadurai for Mr.J.Lawrence

IMPORTANT POINT
The court established that membership eligibility in a society is governed by its bye-laws, and individuals cannot claim membership rights without meeting the stipulated criteria. Additionally, the court emphasized that amendments to bye-laws made in accordance with the governing act are valid unless proven otherwise.

Headnote:

Fact of the Case:

The plaintiffs filed a suit against the defendant Society, claiming that the amendment of the bye-laws restricting membership was null and void, and sought various reliefs including their admission as members and the removal of the Secretary. The plaintiffs alleged mismanagement and irregularities in the Society's affairs, while the defendant contended that the plaintiffs were not eligible for membership as per the bye-laws.

Finding of the Court:

The trial court ruled in favor of the plaintiffs, declaring the amendment to the bye-laws invalid and ordering the defendant to admit the plaintiffs as members and conduct proper elections. The defendant appealed against this judgment.

Issues: 1. Whether the plaintiffs have locus standi to challenge the amendment of the bye-laws? 2. Whether the trial court erred in ordering the removal of the Secretary? 3. Whether the plaintiffs are entitled to membership? 4. Whether the amendment to the bye-laws is valid? 5. Whether the suit is maintainable?

Ratio Decidendi: The appellate court found that the plaintiffs did not establish their eligibility for membership as per the bye-laws and that the trial court misinterpreted the bye-laws. The court held that the amendment to the bye-laws was valid and that the plaintiffs lacked locus standi to challenge the Society's internal management.

Final Decision: The appellate court allowed the appeal, set aside the trial court's judgment, and restored the status quo as it was before the trial court's decree.

JUDGMENT :

THE HONOURABLE MR.JUSTICE K.MURALI SHANKAR

PRAYER:- Appeal Suit filed under Order 41 r/w Section 96 of the Code of Civil Procedure against the judgment and decree dated 24.09.2014, passed in O.S.No.30 of 2011, on the file of the Additional District Judge, Dindigul, decreeing the suit.

The Appeal Suit is directed against the judgment and decree passed in O.S.No.30 of 2011, dated 24.09.2014, on the file of the Additional District Court, Dindigul.

2. The respondents/plaintiffs have filed the above suit claiming the following reliefs

    (a) to declare that the amendment of the bye-laws of the defendant Society dated 27.06.1998 with regard to “admission of membership is up to the decision of Executive Committee” is null and void;

(b) to remove the defendant from functioning as Secretary of the defendant Society;

(c) to direct the defendant to admit the plaintiffs as members of the Society;

(d) to direct the defendant to conduct proper election for electing the executive members of the Society;

(e) to frame a scheme to lease or let the suit property through public notice and public auction; and

(f) to pass such other reliefs as the Court deems fit and proper.

3. For the sake of convenience and brevity, the parties will hereinafter be referred as per their status/ranking in the original suit.

4. The plaintiffs' case in short is as follows:

(a) The suit properties are belonging to Palani Town Viswabrahmana Mahajana Sangam for more than 100 years. Palani Town Viswa Brahmin Community is having five major sects viz., Manu, Maya, Dwastha, Silpy and Viswagnya. The said society was founded by the Community elders for the welfare of the Community people and for the charitable purposes. The said Sangam was registered on 06.03.1958 as per the Societies Registration Act, vide Registration No.7/1958. As per the bye-laws, Palani Town Viswa Brahmin Community people belonging to the above five sects and who are above 18 years of age are eligible to become the member of the said Sangam. More than 6000 families are residing in Palani Town belonging to the said Community. The said Sangam or its properties did not belong to any individual or to any joint family and hereditary family.

(b) While so, the Secretary of the defendant Society, in collusion with some of the Executive Members were doing all sorts of illegal acts and irregularities in the management of the affairs and management of the funds of the Sangam. The Sangam is having a marriage hall called as Viswa Nilayam, but there were no proper accounts with regard to the income and expenditure of the said marriage hall. Though the defendant used to collect donations from the Community people, they are not issuing proper receipts for the same and they are also not maintaining proper accounts with regard to the income and expenditure for the suit properties. The plaintiffs and some other residents of Palani belonging to the said Community requested the defendant on 31.05.2008 to admit them as members of the said Sangam. They were informed to submit application first and later on they would be admitted and on that basis, they have submitted their applications, but subsequently they were informed that as per the bye-laws, only eligible member could be admitted. When the plaintiffs and others were demanding the accounts for the Sangam, they were threatened by the defendant Secretary and hence, several complaints came to be lodged with the District Registrar, Palani, who in turn by his proceedings in Na.Ka.No.414/A3/2009, dated 28.01.2009 stated that as per the bye-laws, the plaintiffs and others cannot be admitted and they should approach the civil Court and get orders, which is very much against the Rule 2 of the Society's bye-laws. Hence, the plaintiffs were put to several mental agory and hardship as they were denied membership without any valid reason by the Sangam and so called office bearers were acting as per their own whims and fancies.

(c) The first plaintiff has lodged a complaint with the Inspecto

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