2016 Supreme(All) 3062
ALLAHABAD HIGH COURT
Amreshwar Pratap Sahi, Attau Rahman Masoodi, JJ.
Satyaveer Singh & Ors. - Appellant
Versus
State of U.P. Thru Prin. Secy. Finance Civil Sectt. Lko.& Ors. - Respondent
Special Appeal No. 614 of 2015
Decided On : 11-01-2016
For the Appellant :- G.C. Verma, Advocate.
For the Respondents:- C.S.C., M.B. Singh.
The main legal point established in the judgment is the importance of considering the impact of the bye-laws on disputes related to membership and elections in societies registered under the Societies Registration Act 1860. The judgment emphasizes the need for a proper assessment of the bye-laws and the evidence and contentions of the parties in such disputes.
Headnote:
Societies Registration Act - Dispute over membership and elections - Section 25(2) - Summary of Acts and Sections: The court discussed the Societies Registration Act 1860, particularly Section 25(2), which empowers the Registrar to hold fresh elections if no valid elections have been held. The court also examined the bye-laws of the society, which provided for the tenure of the committee of management and the process for enrollment of members. The court highlighted the impact of the bye-laws on the management and affairs of the society and their relevance in determining the validity of the elections and membership.
Fact of the Case:
The dispute arose from the annulment of the membership of twenty appellants by the Deputy Registrar, based on the non-holding of valid elections after 2005. The Deputy Registrar also invalidated all proceedings, including the enrollment of the appellants, on this ground. The issue of membership was reopened by a judgment, and the appellants challenged the orders of the Deputy Registrar and the judgment of the learned Single Judge.
Finding of the Court:
The court found that the Deputy Registrar and the learned Single Judge did not adequately consider the impact of the bye-laws on the dispute. The Deputy Registrar failed to assess the actual control of the Committee of Management and did not record any finding on the manner of enrollment of the appellants or the validity of their membership fee. The court also noted that the Deputy Registrar did not enter into the question of the appellants' membership and invalidated all proceedings solely on the ground of non-holding of elections after 2005. The court concluded that the judgment of the learned Single Judge deserved to be modified to set aside the orders of the Deputy Registrar relating to the membership of the appellants.
Issues: The issues included the validity of the annulment of the appellants' membership by the Deputy Registrar, the impact of the bye-laws on the dispute, and the failure to adequately consider the evidence and contentions of the appellants.
Ratio Decidendi: The court held that the Deputy Registrar failed to properly assess the impact of the bye-laws on the dispute and did not adequately consider the evidence and contentions of the appellants. The court also concluded that the judgment of the learned Single Judge deserved to be modified to set aside the orders of the Deputy Registrar relating to the membership of the appellants.
Final Decision: The appeal was allowed to set aside the orders of the Deputy Registrar relating to the membership of the appellants. The Deputy Registrar was directed to redetermine the issue of membership of the appellants in the light of the observations made by the court and the objections to be taken by the appellants and the respondent no. 4.
Amreshwar Pratap Sahi And Attau Rahman Masoodi, JJ. –
This appeal has been filed by twenty persons claiming themselves to be the members of the General Body of a society registered under the Societies Registration Act 1860 that runs a Junior High School, namely Raju Laghu Uchchatar Madhyamik Vidyalaya, Tikri, Agaganj, Faizabad.
2. They are aggrieved as the respondent no. 3 – Deputy Registrar, Firms, Societies and Chits, Faizabad Region, Faizabad has held that their enrolment as members of the society as invalid being not through a validly existing committee of office-bearers, and further that since no valid elections of the Committee of Management survived as the tenure had come to an end long back in the year 2005, therefore, in exercise of powers under sub-section (2) of Section 25 of the 1860 Act, it was imperative to hold fresh elections. The Dy. Registrar has treated the Committee to have become defunct since 2005-06 as such all subsequent actions including the alleged enrolment of the petitioners to be void.
3. The dispute between the parties has a chequered history.
4. The first fact which deserves to be clarified is with regard to the status of the registration of the Society and its bye-laws. The learned Single Judge, whose decision is impugned herein, categorically records that the society was initially registered on 11th August, 1976 with Registration No. 805 of 1971-72 at File No. I-24994. The bye-laws of this society provide the tenure of a committee of management to be elected to manage the society as one year with a rider that in case of necessity the same can be extended further.
5. The enlistment of members under the said bye-laws is provided under Clause 3(kha) which makes a provision that the society will have such general members who donate a sum of Rs. 501/- to be deposited within the time prescribed. Thus the enrolment of member is subject to payment of Rs. 501/- and the period for such deposit is to be provided for accordingly.
6. From the record it appears that a registration of the same society was attempted in the year 1983 and was got registered on 9.3.1983 bearing Registration Certificate No. 3711 of 1982-83 on File No. I-74599. This gave rise to a dispute which ultimately came to be decided with the renewal of the previously registered society vide order dated 3rd February, 1997 and cancellation of the subsequent registration vide order dated 5.2.1997. This renewal was granted on the papers submitted by Sri Chinta Mani Singh as the then Secretary of the society w.e.f. 10.10.1995 for a further period of five years. This was again renewed for a further period of five years w.e.f. 10.10.2000 vide order dated 13.3.2003. The next renewal of the society was through Sri Krishna Singh as Manager vide order dated 24.7.2006 w.e.f. 10.10.2005 for five years onwards. Thus this fact that the first registration of the society and its bye-laws still holds the field, now remains uncontested between the parties and the bye-laws that were registered then are the admitted bye-laws that govern the management and affairs of the society.
7. This was followed by a further request of renewal on 10.2.2011 by Sri Krishna Singh on behalf of the society. The past renewal that was valid had indicated the existence of 23 members of the General Body in the list of 2006-2007. The renewal of the society that was sought came to be granted by the Deputy Registrar on 24th April, 2011 for a period of five years w.e.f. 10.10.2010. The dispute appears to have arisen thereafter when the list of members in its modified form was presented for being validated through Mr. Krishna Singh as Manager and Sri Chinta Mani Singh as Secretary. This attempt was made on 7th May, 2013 followed by another application filed by the said persons on 2nd July, 2013 submitting a list of 41 members of the General Body for the year 2013-14. Thus the previous membership that was existing in 2006-07 with the addition of new members which includes the petitioners