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2019 Supreme(All) 1903

IN THE HIGH COURT OF ALLAHABAD
IRSHAD ALI, PANKAJ KUMAR JAISWAL, JJ.
Banwari Lal Kanchal - Appellant
Versus
Dr. Bhartendu Agarwal & Ors. - Respondent
Special Appeal No. 372, 373 of 2019
Decided On : 20-11-2019

Advocates:
Advocate Appeared:
For the Appellant : Rajeiu Kumar Tripathi, Ambrish Singh Yadav
For the Respondent: C.S.C., Amit Jaiswal, Gaurav Mehrotra, L.P. Misra, Manu Dixit, Vijay Dixit, Vikas Vikram Singh

The court ruled that the electoral process initiated under the Societies Registration Act must be followed strictly with adherence to statutory provisions, and disputes regarding membership validity should primarily be resolved in civil courts.

Headnote:(A) Societies Registration Act, 1860 - Section 25(2) - Powers of the Registrar - Elections of Committee of Management - The Court emphasized that while the Committee of Management may convene meetings post-term expiry if the Registrar has not intervened, disputes regarding membership and election processes are primarily civil matters. The judgment reiterated that individual members must not challenge electoral disputes in writ jurisdiction when alternative remedies exist. As such, the previous ruling allowing the General Body's moderated responsibilities was upheld, confirming that the membership must adhere strictly to statutory requirements. (Paras 66, 91, 96)

(B) Election Process - Writ Jurisdiction - It is established that once elections are notified, they should proceed to logical conclusion, and disputes regarding eligible voters or induction must be resolved through civil courts instead of interim interventions. The principle that courts refrain from interfering in electoral processes when substantial questions of fact are involved was underscored. (Paras 68, 70, 94)

Facts of the case:
The appeals arose from a dispute surrounding a society's management due to a prolonged lack of elections since 2008, leading to questions of legitimacy in inducting new members and superseding the existing management. Administrative orders were previously issued to declare members eligible without adherence to bylaw procedures, creating a legal contention over membership validity. (Paras 12, 79, 96)

Findings of Court:
The court deemed the learned Single Judge's order valid in principle but modified it to clarify the powers of management post-expiration of terms during an ongoing election process without Registrar's intervention, thus partially allowing appeals. (Paras 96-97)

Issues: The key issues revolved around the maintainability of writ petitions involving electoral disputes and the extent of authority delegated to the Registrar in managing memberships and elections under the Societies Registration Act, 1860. Majority control and governance adherence during elections were scrutinized. (Paras 66, 68, 74)

Ratio Decidendi: The court ruled that statutory regulations govern the election processes, and disputes about memberships can only be adjudicated through established civil avenues, affirming that once the electoral process is initiated, judicial intervention should be minimal, focusing compliance with existing bylaws and processes for proper governance. (Paras 66, 94-96)

Result: Special appeals partly allowed, with specific directives to comply within a month regarding the election management process. No order for costs delivered.

Table of Content
1. intra-court appeals are filed under specific court rules. (Para 1 , 2)
2. details about the registered society, its formation, and governance. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
3. arguments regarding the maintainability of writ petitions related to election disputes. (Para 24 , 36 , 48 , 49 , 50 , 51 , 54 , 56 , 58)
4. court’s analysis of statutory provisions regarding electoral processes for societies. (Para 66 , 74 , 76 , 80 , 82 , 86)
5. modification of the previous ruling regarding the elections of the society's management. (Para 96 , 97 , 98)

JUDGMENT :

IRSHAD ALI, J.

1. Heard Sri Anoop Trivedi, learned Senior Advocate assisted by Sri Rajieu Kumar Tripathi, learned Advocate for the appellant, Sri Sandeep Dixit, learned Senior Advocate assisted by Sri Vijay Dixit, learned Advocate for the opposite party No.1, learned Standing Counsel for opposite party Nos.2 to 4, Sri Gaurav Mehrotra, learned Advocate for opposite party No.5, Sri Amit Jaiswal, learned Advocate for opposite party No.6, Sri Vikas Vikram Singh, learned Advocate for opposite party Nos.7 and 8 and Sri Manu Dixit, learned Advocate for opposite party No.9.

2. These two intra-court appeals have been filed under Chapter-VIII Rule 5 of the Allahabad High Court Rules, 1952, challenging the judgment and order dated 19.8.2019 passed by learned Single Judge in Writ Petition No.5413 (M/S) of 2015 and Writ Petition No.5783 (M/S) of 2015.

3. Factual matrix of the case is that there is a registered society registered on 29.12.1998 under the provisions of Societies Registration Act, 1860. The registration of the society was renewed from time to time and the last renewal was granted vide order dated 29.12.2013 for the period of 5 years i.e., up to 28.12.2018. The object of formation of the society is given under the memorandum of association. The object of the society is to promote practical oriented business management information and computer application, education, training, research and development consultancy etc. It has further been provided to promote and manage educational and vocational institutions, schools/colleges affiliated to any approved educational body/authority within Union of India besides other objects as mentioned in the Memorandum.

4. At the time of registration of the Society, the following were the members of the Executive Committee with whom the management of the affairs of the Society was entrusted:-

    (i) Mr. Laxmi Narain Agrawal, S/o Late R.S. Agrawal;

    (ii) Mr. Banwari Lal Kanchhal, S/o Late C.L. Agarwal;

    (iii) Mr. Nagendra Kumar Agarwal, S/o Shri P.L Agarwal;

    (iv) Smt. Pooja Agarwal, W/o Shri Pankaj Agarwal;

    (v) Prof. (Dr.) S.P. Dixit, S/o Late B.V. Dixit;

    (vi) Dr. Bhartendu Agarwal, S/o Shri L.N. Agarwal; and

    (vii) Dr. Swati Agarwal, W/o Dr. B. Agarwal

5. Bye-laws of the Society prescribe three kinds of members i.e. (i) Founder Member; (ii) Life Member; and (iii) Honourary Member. Founder Member is Mr. Laxmi Narain Agrawal. He has been authorized to nominate any life-member as founder member, considering the contribution to the cause of the Society in the form of money, besides physical efforts.

6. All the seven members of the Society are also life members of the Society. The President of the Society has right to nominate any person or persons from time to time as honourary member of the Society and likewise to withdraw such nomination at any time.

7. Termination of membership from the Society can happen in the following eventualities:-

    (i) on resignation;

    (ii) on death;

    (iii) on expiry of the term:

    (iv) insanity or idiosyncrasy;

    (v) on conviction in any criminal offence, involving moral turpitude;

    (vi) bodily infirmity or immorality; and

    (vii) indiscipline.

8. The Society consists of two organs i.e. (i) general body; and, (ii) executive body. The general body consists of all members of the Society. The general body has to meet at-least once in a year. An extraordinary meeting of the general body can be called in case of emergency by the President o

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