SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Online)(Mad) 72828

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mohammed Shaffiq, J
P. Ponnurangan – Appellant
Versus
Inspector General of Registration – Respondent
W.P.No.3275 of 2025



Advocates:
For the Appellants/Petitioners: Vijay Narayan, C.Vigneswaran
For the Respondents: J.Ravindran, U.Baranidharan

The requirement for a 3/4th majority resolution in a registered society must be calculated based on existing members rather than the original foundation number. Furthermore, an 'Association of Persons' constitutes a 'sangam' for the purpose of asset transfer under dissolution provisions.

Headnote:(A) Tamil Nadu Societies Registration Act, 1975 - Sections 41, 44(4) - Dissolution of Society - Transfer of assets - Resolution passed by majority of existing members - Requirement of 3/4th majority reckoned based on existing members and not initial number of members - Interpretation of by-laws regarding transfer of assets to an association of persons - Court held that an association of persons falls within the meaning of a society/sangam. (Paras 5.2, 5.5)

(B) Writ Petition - Scope of judicial review - Impugned orders setting aside for lack of consideration of arguments and improper application of by-law interpretation - Matter remanded to the authority for fresh consideration. (Para 6)

Facts of the case:
Petitioner Society, registered under the Act, sought to dissolve and transfer its properties to an Association of Persons after failure to conduct activities and subsequent striking off the register. The request was rejected by respondents primarily on grounds of insufficient majority support for the resolution and the beneficiary entity not being a registered society. The society challenged these rejections in the current writ petition.

Findings of Court:
The Court held that the calculation for the required 3/4th majority must be based on existing members, not the original strength. Further, an 'Association of Persons' constitutes a 'Sangam' under the relevant by-law, allowing transfer of property.

Issues: Whether the 3/4th majority requirement for resolution is based on the original number of registered members or existing members; and whether an 'Association of Persons' qualifies as a recipient for property transfer under the society's by-laws.

Ratio Decidendi: Resolution requirements must be practical; calculating majorities based on individuals no longer living leads to unworkable results. A society is essentially an association of persons, and thus, transferring assets to such an association fulfills the mandate of transferring to a 'sangam'.

Result: Writ petition disposed of; impugned orders set aside, and matter remanded for fresh consideration.

Table of Content
1. background and factual history of the society's dissolution. (Para 1 , 2)
2. arguments concerning membership calculation and property transfer compliance. (Para 3 , 4)
3. judicial interpretation of membership majority and definition of societies. (Para 5)
4. court's decision to remand for reconsideration due to administrative infirmities. (Para 6 , 7)

PRAYER: Writ Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus to call for the records of the 2nd respondent in proceedings No.2512/A3/2024 dated 10.09.2024 and the consequential order in ADM No.3660/A3/2024 dated 04.10.2024 the 2nd respondent quash the same and consequently direct the 2nd respondent to allow the Dharmapuri District Kongu Vellala Goundergal Sangam represented by its President or any other Authorised Member of the Society to transfer the property in Survey Numbers S.No.73/2A (50 Cent), S.No.73/3A1 (33 Cents), S.No.50/1B (1 Acre and 17 cents) totally 2 Acres in Mopiripatti Village, Harur Registration District, Dharmapuri to and in favour of Dharmapuri District Kongu Velala Goundergal Welfare Association (Association of Persons).

ORDER

The present writ petition is filed challenging the proceeding of the 2nd respondent dated 10.09.2024 and consequential order dated 04.10.2024, to quash the same and direct the 2nd respondent to allow the petitioner represented by its President or any authorized member to transfer the properties in Survey Nos. 73/2A (50 Cents), Survey No.73/3A1 (33 Cents) and Survey No.50/1B (1 Acre and 17 Cents) totally 2 Acres situated at Mopiripatti Village, Harur, Dharmapuri District (hereinafter referred to as “subject properties”) to and in favour of Dharmapuri District Kongu Vellala Goundergal Welfare Association (Association of Persons).

2. Brief Facts:

2.1. Petitioner was a registered Society under Tamil Nadu Societies Registration Act, 1975 (hereinafter referred to as “the Act”). Petitioner was issued with a Certificate of Registration bearing Registration No. 33 of 1989. Petitioner Society was originally founded by 19 members with the objective of promoting the welfare of Kongu Vellalar Community and to help persons belonging to the said community residing in Dharmapuri District. Petitioner Society as part of its objective intended construction of a Kalyana Mandapam for the benefit of the members of the said community. Petitioner Society vide its meeting dated 17.07.1989 resolved to increase the strength of members from 19 to 25 and the same was approved by Registrar of Societies on 22.07.1989.

2.2. Subject properties were purchased by petitioner Society represented by its President vide sale deed registered as Document No.1010/1989 dated 11.05.1989. Clauses in sale deed would show that purchase of the subject properties were intended / meant for construction of a Kalyana Mandapam ie., in furtherance of Societies object. After purchase of the subject properties, Petitioner Society faced liquidity crunch and was unable to mobilize the funds necessary for construction of proposed Kalyana Mandapam. Financial crisis was severe that it not just delayed the construction of Kalyana Mandapam but adversely affected functioning of petitioner Society, resulting in Society coming to a grinding halt. There was default in yearly renewals and other statutory compliance including under the Tamil Nadu Societies Registration Act by petitioner Society.

2.3. Petitioner’s Society Registration was struck off from the register in terms of Section 44(4) of the Act and was published in the Tamil Nadu Gazette No.4 dated 02.02.2000. Resultantly, Petitioner Society was deemed to have been dissolved in terms of Section 44(4) of the Act. However, even thereafter i.e., striking off the petitioner from the register, title and possession of the subject properties remained with the Society and its members inasmuch as petitioner Society has not undergone the actual process of Dissolution.

2.4. Members of t

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top