IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Sujoy Paul, J.
M. Sanjay Kumar - Petitioner
Versus
Shanta Educational Society and others - Respondents
Civil Revision Petition No.2026 of 2024
Decided On : 10-09-2024
(A) Telangana Societies Registration Act, 2001 – Section 23 – Code of Civil Procedure, 1908 – Order VII Rule 11 – Maintainability of application under Section 23 questioned – Court held that resignation renders individual no longer a member, thus application under Section 23 not maintainable – Principle of 'nip in the bud' applicable to prevent unnecessary litigation – Court affirmed rejection of plaint. (Paras 10, 20, 24)
(B) Jurisdiction – Court's inherent power to examine maintainability based on statutory definitions – Court may dismiss a case at threshold if found not maintainable. (Paras 18, 21)
Facts of the case :
The petitioner challenged the rejection of his plaint regarding his removal as a founding member of a society, claiming the resignation was invalid.
Findings of Court :
The Court found that the petitioner had indeed resigned, thus was not a member, making the application under Section 23 of the Act not maintainable.
Issues : The main issues were the applicability of CPC provisions in the context of the Act and the validity of the resignation.
Ratio Decidendi : The court ruled that a person who has resigned cannot be treated as a member under the Act, affirming the trial court's decision to reject the plaint.
Result : Civil Revision Petition dismissed.
ORDER :
Sujoy Paul, J.
The interesting conundrum in this petition filed under Article 227 of the Constitution of India is, whether the principle of “nip in the bud” can be applied in a proceeding pursuant to an application filed under Section 23 of the Telangana Societies Registration Act, 2001 (for short ‘the Act’). Putting it differently, whether the application filed under Order VII Rule 11 of the Code of Civil Procedure, 1908 (for short ‘CPC’) was maintainable in the proceedings under the Act and whether the trial Court was justified in rejecting the plaint by order dated 20.03.2024 in I.A.No.1676 of 2023 in S.O.P.No.10 of 2023.
Factual Background:
2. The petitioner filed the application with the following prayer:
ii) to grant a relief of mandatory injunction thereby directing the Respondent No.2 to 13 to furnish the copies of the undated letter, undated MOU, board resolution on the basis of which Respondents have pressed into service the undated draft resignation letter of Petitioner and removed Petitioner as founding member of the Respondent No.1.
iii) to grant a relief of mandatory injunction thereby directing the Respondent No.1 to 13 to furnish all the financial accounts, books and statements of the Petitioner Society from 2006-07 to the present financial year before this Hon’ble Court.
iv) to appoint an Advocate Commissioner to verify the vouchers, receipts, donations, balance sheets and accounts of the Respondent No.1 Society.
v) To consequently grant a Relief of Perpetual Injunction thereby restraining the Respondents 2 to 13, their representatives, employees and all persons acting on behalf of Respondent No.2 to 13 from illegally stopping the Petitioner from entering into the registered office premises and “St.Peters Engineering College” located at Kompally, Medchal of Respondent No.1 Society.
vi) To grant a relief of Permanent injunction thereby restraining the Respondents 2 to 13 from in any way accepting, honouring, permitting and allowing any kind of interference in the matters of pertaining to the admission, appointments and administration of educational institution named as “St.Peters Engineering College” located at Kompally, Medchal of Respondent No.1 Society.
vii) By awarding the costs of the proceedings and other incidental expenses/charges etc., incurred to by the Petitioner; and
viii) To grant any such relief(s) as deemed fit and proper in the circumstances of the case and to which the Petitioner is legally entitled to, in the interest of justice.”
3. Upon receiving notice, the Society entered appearance and filed an application under Order VII Rule 11 of the C.P.C. for rejection of the plaint. In turn, the petitioner filed his counter. After hearing both the parties, the Court passed impugned order dated 20.03.2024 and rejected the plaint.
Contention of the Petitioner:
4. Learned Senior Counsel for the petitioner raised two fold submissions. Firstly, it is submitted that the provisions of CPC are not borrowed under the Act. The petitioner also took an objection of maintainability of said application preferred under Order VII Rule 11 of CPC. In the impugned order, the said objection has not been dealt with. Since Order VII Rule 11 of CPC is not applicable, the question of rejection of plaint does not arise. The ‘Plaint’ is defined under Order VI of CPC. The plaint cannot be equated with ‘application’ filed under Section 23 of the Act. By placing reliance on Madhya Pradesh High Court judgment in case of Kanta vs. Arvind Tare 2011(3) M.P.L.J, it is submitted that the word ‘Plaint’ has a definite connotation under the CPC. The same cannot be stretched to include application under Sectio
Bilkis Yakub Rasool vs. Union of India (2024) 5 SCC 481
Jai Singh vs. Municipal Corporation of Delhi (MCD) (2010) 9 SCC 385
Krishan Kumar Birla vs. Rajendra Singh Lodha (2008) 4 SCC 300
Nasiruddin vs. Sita Ram Agarwal
Terapalli Dyvasahata Kumar v. S.M.Kantha Raju (2018) 11 SCC 769
A resignation from membership in a society under the Telangana Societies Registration Act renders the individual ineligible to file disputes under Section 23 of the Act.
Partial rejection of a plaint is impermissible; if any relief survives, the action cannot be dismissed in parts, emphasizing the need for whole plaint consideration.
A cooperative society must provide specific allegations prior to expelling members, and any dismissal of membership without due process is unsustainable under the Telangana Cooperative Societies Act.
The court established that membership eligibility in a society is governed by its bye-laws, and individuals cannot claim membership rights without meeting the stipulated criteria. Additionally, the c....
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