Internal disputes of societies must be resolved through arbitration or District Court as per Section 23 of the Societies Registration Act, 2001, not via writ petitions.

ORDER :

N.V. SHRAVAN KUMAR, J.

This writ petition has been filed praying to:

“to call for the records relating the order passed by the 3^rd respondent vide Letter No 6309/ 15291983/Soc/2023, dated 03/ 10/2023 and quash the same and further direct to seize the records and supersede the managing committee of the 4^th respondent-Society in the interest of justice.”

2. Brief facts rising to file this writ petition are that the petitioner is claiming to be founder Member of respondent No.4 Society i.e., Deccan Development Society (herein after referred as ‘DDS’), vide registered No. 1529/ 1983 and the said DDS brought an amendment to bye-laws of the Society, which was approved on 07.09.1994. It is submitted that initially the said DDS had purchased lands in many villages by way of donations for the purpose of cultivating and eking out the livelihood of the weaker section of the societies. The Government of the then Andhra Pradesh also provided fund grant in 1994-95 to the said DDS based on public distribution system. Petitioner’s further case is that the said DDS withdrew the said funds and transferred them to their own account leading to collapse of the scheme.

3. Learned counsel for the petitioner would submit that said DDS had already sold 40 acres of land in Mahipatpur (meant for forestry plantation) and 5 acres in Machnoor village and it is still in possession of Ac.79-20 Gts. of land besides Krishi Vigyan Kendra land admeasuring Ac.30. Learned counsel further submit that petitioner came to know that the DDS incurred an expenditure to the tune of Rupees 1.25 Crore on account of Apollo Hospital medical expenses of Late Sri Sateesh, the then Secretary of Society. Subsequently, petitioner issued legal notice on 16.06.2023, for which vague reply was given by the said DDS on 05.07.2023 and without answering any of the allegations / averments made by the petitioner. It is further submitted that DDS have not indicated the dates of resolutions and Annual General Meetings in their reply. Aggrieved by the same, petitioner submitted all to respondent No.3, vide representation dated 21.09.2023. However, the respondent No.3 without conducting any enquiry has passed a mechanical order, vide Letter No.6309/ 1529-1983/ Soc/ 2023, dated 03.10.2023, which reads as under:

“With reference to the subject and reference cited above, it is to inform that the Society “Deccan Development Society” was registered at this office vide Regn.No. 1529/1983 on Dt. 02-09- 1983. Later, the Society has submitted a request for the amendment of the objectives of memorandum of society and the same was taken into record by this office on Dt. 16-11-1994.

Thereafter, the society has not submitted any documents for change of the executive body or amendment of bye-laws till date.

Kindly note that Section 23 of the Societies Registration Ac 20 clearly envisages that the Registrar of Societies is not conferred with any power to resolve the internal disputes-of the Society or dispute in respect of any matter relating to the affairs of the Society or an issue regarding the elected members. However, in case of any allegations or complaints of the irregularities found within the members of the Society, the same undoubtedly will have to be disposed of in accordance with the Law and further changes are sub-judice.

Hence, you may kindly proceed with the dispute under the provisions of the arbitration and Conciliation Act, 1996 (Central Act 26 of 1996) or may file an application in the District Court concerned and the said court shall after necessary inquiry pass order as it may deem fit.”

4. Learned counsel for the petitioner further submits that Respondent No.3 has every power to supervise, inspect and has general control on the activity of the said DDS and if the DDS fails to comply with the statutory needs like holding periodic meetings and non-submission of financial statements, the respondent No.3 may initiate penal action including cancellation of registration. He would further submits