The court emphasized the necessity of a proper enquiry and substantial evidence before cancellation of registration under the Tamil Nadu Societies Registration Act.

ORDER :

D.Bharatha Chakravarthy, J.

The Writ Petition is filed challenging the impugned order dated 10.02.2025. By the said order, the registration of the petitioner – Society was cancelled by the 2^nd respondent.

2. It is the case of the petitioner that originally show cause notices were issued on 11.12.2023 and 10.10.2024. The only allegation that is made in the show cause notices is that the petitioner society's members are playing three cards which amounts to gambling and it is illegal. Already cases have been registered against the petitioner – society. The contents of the First Information Report are incorrect and that the petitioner is defending the criminal cases. As on date except the FIR, there is no other evidence available on the file of the 2^nd respondent, to conclude that the petitioner society's members are involved in playing three cards. Therefore, the FIR itself cannot form the conclusive proof for the allegation and the registration of the society cannot be cancelled.

3. The other grounds that are mentioned in the impugned order is with reference to non-furnishing of proper accounts. The impugned order mentions as if, in the returns, only a sum of Rs.10,790/- was shown as the annual income of the society, whereas, in the enquiry, it was found that they are paying the monthly wages of around Rs.45,000/- to the employees of the society. Therefore, the Registrar of the Societies has come to the obvious conclusion that the society has been burking the real amounts and false information is filed by way of returns.

4. It is the case of the petitioner that the allegation was not put to them for explaining their version.

5. The Writ Petition is resisted by the respondent, by filing separate counter affidavits by the 2^nd respondent as well as the 4^th respondent.

6. The 4^th respondent has given the details of three criminal cases that are pending in Crime Nos.210, 409 and 54 of 2023 as against the petitioner – Society. It is their case that repeatedly the petitioner – Society is involving in gambling by allowing its members to play three cards. As such action was taken by the Registrar of Societies.

7. The Registrar of Societies has also filed a counter affidavit. It is stated that due show cause notice has been issued and the impugned order has been passed both in exercise of powers under Sections 36 as well as 38 of the Societies Registration Act, 1975. When the Society indulges in an unlawful activity, the same can be cancelled in exercise of power under Section 38 of the Societies Registration Act, 1975. Therefore, the impugned order has rightly been passed.

8. Admittedly, the registration of the petitioner – Society was cancelled and the same cannot be done without affording an opportunity to the petitioner. In the instant case, the first show cause notice was issued on 11.12.2023, which reads as follows:-

9. It can be seen that the only reason that is mentioned in the show cause notice is that the criminal case has been registered with reference to gambling. Once again, another show cause notice was issued to the petitioner on 10.10.2024 and the same is extracted hereunder:-

10. It can be seen from the second show cause notice that the very same allegation is made. The petitioner submitted its explanation denying that its members are not playing three cards.

11. It may be true that if the petitioner – Society or its members are indulging in playing three cards that would amount to gambling and a criminal offence and action can definitely be taken. But in respect thereof, in the show cause notice or in the impugned order, except mentioning the First Information Report, no other evidence is mentioned. The FIR by itself is not a conclusive ev