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2023 Supreme(P&H) 2829

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AUGUSTINE GEORGE MASIH, VIKRAM AGGARWAL, JJ.
Rishi Garg & Ors. – Appellants
Versus
State of Haryana & Ors. – Respondents
LPA-804 of 2021(O&M)
Decided On : 25-04-2023

Advocates Appeared:
Mr. Chetan Mittal, Senior Advocate with Mr. Mayank Aggarwal, Advocate, for the appellants in LPA No.804 of 2021, and; For the Petitioner in CWP No.4412 of 2021.
For the Respondent: Mr. Deepak Bhardwaj, DAG, Haryana.
Mr. B.S. Rana, Senior Advocate with Mr. Harshit Singh, Advocate; For the Petitioner in CWP No.7840 of 2021, for Respondent No.6 in LPA No.804 of 2021, for Respondent No.5 in CWP No.4412 of 2021.
Mr. R.K. Doon, Advocate, for Respondent No.5 in LPA No.804 of 2021

Headnote:(A) Haryana Registration and Regulation of Societies Act, 2012 - Sections 2(XV), 14, 16, and 21 - Induction of life members by a managing committee - Managing Committee's power to induct life members upheld, however, their actions deemed arbitrary and non-transparent as the membership was improperly granted to wards of pre-deceased members without broader eligibility criteria being applied. (Paras 11, 13, 15)

(B) Locus Standi - Court recognizes that any individual with a genuine interest in society's functioning can challenge illegal acts by a managing committee and the locus standi is determined case by case. (Paras 14, 15)

Facts of the case:
The litigation revolves around the induction of 168 life members by the Sonepat Hindu Educational and Charitable Society, contested by various parties leading to multiple writ petitions. The Society is registered under the HRRS Act and its management engaged in longstanding disputes regarding membership validity due to the lack of transparency and adherence to legal procedures.

Findings of Court:
The Court affirmed the learned single bench's finding that the managing committee acted unlawfully in inducting life members without a proper process.

Issues: The primary issues involved the validity of life member induction by the managing committee and the locus standi to challenge such actions.

Ratio Decidendi: The Court held that managing committees must ensure transparency and adherence to Bye laws governing membership, criticizing actions rooted in favoritism.

Result: The Letters Patent Appeal was dismissed, maintaining the lower court's order and affirming the legality of procedures to address membership disputes.

Table of Content
1. induction of members and legal challenges. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. arguments regarding the legality of life members' induction. (Para 8)
3. court's dismay over prolonged litigation. (Para 9 , 10)
4. provisions governing membership eligibility and disputes. (Para 11 , 12)
5. analysis of managing committee's actions and legality. (Para 13 , 14 , 15 , 16)
6. dismissal of appeals with reference to findings. (Para 17)

JUDGMENT

Vikram Aggarwal, J.

This judgment shall dispose of the aforementioned three cases i.e. LPA-804-2021 titled as Dr. Rishi Garg and Others v. State of Haryana and Others, CWP-4412-202 titled as Sonepat Hindu Educational & Charitable Society Sonepat v. State of Haryana and Others and CWP-7840-2021titled as Bhagwan Gupta v. State of Haryana and Others.

2. The Letters Patent Appeal challenges the judgment dated 19.07.2021 passed by the Learned Single Bench vide which the writ petition filed by the appellants was disposed of with certain directions to respondent No.2. The writ petition before the Learned Single Bench sought quashing of the order dated 28.01.2021(Annexure P-10), order dated 24.04.2018(Annexure P-8) and order dated 26.09.2017(Annexure P-5).

CWP-4412-2021 challenges order dated 29.01.2021(Annexure P-8), order dated 05.02.2021(Annexure P-13) and order dated 19.02.2021(Annexure P- 19).

The third case i.e. CWP-7840-2021 challenges the order dated 28.01.2021(Annexure P-1), to a limited extent that the order holds the Managing Committee of the Society as the competent authority for inducting life members.

3. The litigation pertains to a dispute with regard to induction of 168 persons as life members by the Sonepat Hindu Educational and Charitable Society Sonepat. The facts shall be taken from CWP-3429-2021(from which LPA-804- 2021 arose).

4. The Sonepat Hindu Educational and Charitable Society Sonepat (hereinafter referred to as the Society) is a Society registered under the Haryana Registration and Regulation of Societies Act 2012 (hereinafter referred to as the HRRS Act). It is said to be running a number of educational institutions and has been serving the Society for more than 100 years. It has a maximum membership of 1100 members. As the membership of the society was dwindling due to death of some of its members, the Managing Committee of the Society constituted a Sub- Committee for inducting new members. On 26.05.2013, 168 members which included the petitioners Rishi Garg etc (petitioners in CWP-3429-2021 from which LPA-804-2021arose). Respondent No. 6 Sh. Bhagwan Gupta filed a petition under Section 21 of the HRRS Act before the District Registrar of Societies(respondent No.4) assailing the grant of life membership to 168 persons. Vide order dated 17.04.2014, the membership was cancelled by respondent No.4 leading to filing of CWP No.8182-2014 by the society. The writ petition was disposed of on 28.07.2017(Annexure P-4)(reference to annexures hereinafter shall be from CWP- 3429-2021) and the matter was remanded to respondent No.4 for a fresh decision as the life members had not been impleaded as parties by respondent No.6.

5. The matter was thereafter heard by respondent No.4 and vide order dated 26.09.2017(Annexure P-5), the petition filed by respondent No.6 was allowed. It was held that the respondent No.6 had the locus standi to file the petition and the induction of 168 members by the Managing Committee was not in accordance with the provisions of the HRRS Act and the rules. However, it was held that the Managing Committee was valid. This decision was challenged by some members. Respondent No.3, vide order dated 24.04.2018(Annexure P-8) partly allowed the appeal and it was held that the Governing Body of the society had the absolute powers to induct new members. However, no specific finding was given on the locus standi of respondent No.6 and also suspended the membership of 168 members directing the Managing Committee to get the membership regularized from the general body.

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