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2020 Supreme(All) 1514

IN THE HIGH COURT OF ALLAHABAD
PANKAJ BHATIA, J.
C/M Maharshi Kapil Muni Shiksha Samiti And Another – Appellant
Versus
State Of U.P. And Another – Respondent
Writ C No. 19885 of 2020
Decided on : 08-12-2020

Advocates:
Advocate Appeared:
For the Appellant : Ved Prakash Shukla

Headnote:

Societies Registration Act, 1960 – Section 13A, 13B, 13(B) (2) - Dissolution by court - Power of Registrar to apply for dissolution - Writ petition was filed alleging that petitioners have dissolved their society by Resolution in accordance with the scheme of Societies Registration Act, 1960 and have transferred assets and liabilities to the newly created trust in the name of Maharshi Kapil Muni Shiksha Trust – Held, Court are concerned with the voluntary dissolution under Section 13, which simply requires the passing of a resolution by the members of the society no being less than three-forth of the total members of the society - Once the said condition is met, no other condition is required to be fulfilled and the same does not require a seal of approval by any officer or authority - In present case, it is alleged that by a resolution passed unanimously i.e. by more than three-fifth members of the society, the society has been dissolved, as such, no further approval is required and the dissolution would be deemed to be effective from the date of its passing - As Court have recorded above that no seal of approval is required for dissolving the society as has been done in the present case, a writ, as prayed for cannot be granted, however, petitioners are directed to give an information in writing along with the copy of Resolution to the Assistant Registrar of Societies who shall record the same in his records - Writ petition disposed off.

JUDGMENT :

1. Present writ petition was filed alleging that the petitioners have dissolved their society by Resolution dated 1.4.2011 in accordance with the scheme of Societies Registration Act, 1960 (in short 'the Act') and have transferred assets and liabilities to the newly created trust in the name of Maharshi Kapil Muni Shiksha Trust.

2. Petitioner claims that in terms of the resolution passed, an application was moved before the Respondent No. 2 for approval of the resolution.

3. Counsel for the petitioner argues that the application filed before the Respondent No. 2 for approval of the resolution dated 1.4.2011 is pending consideration, as such, he prays that a suitable writ, order or direction be issued to the Respondent No. 2 to take a decision on the said application.

4. This Court raised a pointed query to the counsel for the petitioner as to where is the provision prescribed under the Act conferring the power on the Assistant Registrar to approve the resolution passed by the society for its dissolution.

5. Counsel for the petitioner has relied upon the provisions of Section 13 of the Act. There appears to be no such provision, as such, I consider it appropriate to discuss the scope of Section 13 containing a provision for dissolution of societies and adjustment of their affairs. The provision for dissolution of societies and adjustment of their affairs is contained in Section 13, which is as under:

    "13. Provision for dissolution of societies and adjustment of their affairs.—Any number not less than three-fifths of the members of any society may determine that it shall be dissolved, and thereupon it shall be dissolved forthwith, or at the time then agreed upon, and all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities, according to the rules of the said society applicable thereto, if any, and if not, then as the governing body shall find expedient, provided that, in the event of any dispute arising among the said governing body or the members of the society, the adjustment of its affairs shall be referred to the principal Court of original civil jurisdiction of the district in which the 'registered office of the society'* (* as amended vide Uttar Pradesh Act 52 of 1975 w.e.f. 10.10.1975) is situate; and the Court shall make such order in the matter as it shall deem requisite:

Provided that no society shall be dissolved unless three-fifths of the members shall have expressed a wish for such dissolution by their votes delivered in person, or by proxy, at a general meeting convened for the purpose:

Provided that [whenever any Government] is a member of, or a contributor to, or otherwise interested in any society registered under this Act, such society shall not be dissolved [without the consent of the Government of the [State] of registration.]"

6. The State of Uttar Pradesh has amended the Societies Registration Act insofar its applicability in the State of Uttar Pradesh is concerned and Section 13A and Section 13B have been incorporated in the Act providing for dissolution of the society in manner other than a voluntary dissolution as provided under Section 13 of the Act, which is quoted hereinabove.

7. Section 13A and 13B amended by virtue of U.P. Act No. 52 of 1975 are quoted as under:-

    "13A. Power of Registrar to apply for dissolution:-(1) Where in the opinion of Registrar, there are reasonable ground to believe in respect of a society registered under this Act that any of the grounds mentioned in clauses (a) to (e) of subsection (1) of Section 13B exists he shall send to the society, a notice calling upon it to show cause within such time as may be specified in the notice why the society be not dissolved.

(2) if on or before the date specified in the notice or within such extended period as the Registrar may allow, the society fails to show any cause or if the cause shown is considered by the Registrar to be unsatisfactory, the Registrar, may move the C

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