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2024 Supreme(Online)(Tel) 38938

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Nagesh Bheemapaka, J
Sri Tokala Swamy – Appellant
Versus
The State of Telangana – Respondent
WRIT PETITION No.13382 of 2024



Advocates:
For the Appellants/Petitioners: Ashok Anand Kumar, N. Gangadhar
For the Respondents: M.S. Prasad

A society registered under the Societies Registration Act, 2001, which is not an 'instrumentality of the State' under Art.12 of the Constitution, is not subject to writ jurisdiction; disputes regarding its management, including elections, must be resolved under the statutory remedy of S.23 of the Act.

Headnote:(A) Societies Registration Act, 2001 - Section 23 - Constitution of India - Article 12 - Writ jurisdiction - Maintainability - Whether a society not performing public duty and not an instrumentality of state amenable to writ jurisdiction. Held, a society registered under the Societies Registration Act, 2001, lacking pervasive state control or public duty, cannot be considered 'State' under Article 12, thus, disputes regarding management or elections must be resolved through Section 23 of the Act via arbitration or District Court proceedings. (Paras 16, 19, 21, 22)

Facts of the case:
The petitioner, a former Executive Committee member, alleged mismanagement, lack of transparency, and financial irregularities by the Executive Committee of the Telangana Olympic Association after their term expired. The petitioner sought relief against the committee's actions, including the conduct of elections and amendment of By-Laws.

Findings of Court:
The Court held that the Association was not an instrumentality of the State under Article 12 as it lacked government nominees, state funding control, or statutory functions. Consequently, the Writ Petition was not maintainable, and the petitioner was directed to seek appropriate civil remedies.

Issues: 1) Whether the Telangana Olympic Association is an instrumentality of the State under Article 12. 2) Whether a dispute over elections and management of a society is maintainable under Article 226 when a specific statutory remedy is provided under Section 23 of the Societies Registration Act, 2001.

Ratio Decidendi: A society not fulfilling the 'deep and pervasive' state control test and performing no public duty cannot be sued via writ; statutory dispute resolution mechanisms provided in the governing Act must be exhausted.

Result: Writ Petition disposed of as not maintainable, with liberty to avail legal remedies.

Table of Content
1. factual overview of allegations of mismanagement and procedural lapses in a sports association. (Para 1 , 2)
2. arguments concerning maintainability of writ due to alternative remedies and non-membership of petitioner. (Para 3 , 4 , 5 , 6)
3. consolidated consideration of linked writ petitions and cited relevant case law. (Para 7 , 8 , 9)
4. determination that the society is not an 'instrumentality of state' under article 12. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
5. requirement to invoke specific statutory dispute resolution mechanisms provided by the societies registration act. (Para 19 , 20 , 21 , 22 , 23)

ORDER:

1. The petitioner was elected as Executive Committee Member of 2nd respondent-Telangana Olympic Association, registered under the Societies Registration Act, 2001. The 2nd respondent-Association receives funds from the Indian Olympic Association and also from the State Government for furtherance of Sports Activities and to inculcate sportsmanship, aesthetic, ethical and spiritual values and development of character and good citizenship. The grievance in the writ petition is that the term of Office of the Association expired on 08.02.2024, however, the erstwhile Office Bearers are continuing as Office Bearers and mismanaging the affairs of the Association and acting detrimental to the aims and objects of the Association. It is alleged that respondent No.3 in collusion with respondent No.4 committed serious irregularities in conducting the affairs of the Association, mismanaged the funds without maintaining proper account books, collected money for booking conference halls and room bookings without proper record, took their own decisions without consulting the other Office Bearers and not putting them before the Managing Committee or General Body for approval, conduct meetings on their own wishes, and they used to remove the Office Bearers of the affiliated associations and appoint their favourable persons as Office Bearers. It is also alleged that the Association has three Bank Accounts and respondent No.3 receives salary as an Advisor to Central Government and declared himself as Officiating President though By-Laws doesn’t recognize the same and no Annual General Body meeting is conducted till date. It is stated that an Annual General Body Meeting was conducted by the Office Bearers on 26.06.2022 and some office bearers and affiliated associations submitted representations objecting to the same due to various irregularities and requested them to rectify the irregularities and postpone the Annual General Meeting to a later date in consultation with Executive Committee members, however, the same was disregarded and respondents 2 to 4 have conducted the meeting and passed illegal resolutions. It is alleged that respondents 3 and 4 did not disclose the number of accounts, fixed deposits etc. It is alleged that OP No.1/2024 was filed on the file of XXV Additional Chief Judge, City Civil Court, Hyderabad, along with a Stay Application but the Stay application was dismissed without appreciating the facts. It is stated that when the 2nd respondent issued Notice to conduct Executive Meeting and Special General Body Meeting on 29.02.2024 and 13.04.2024, respectively, proposing to amend By-Laws, the petitioner and other Associations objected to the same. On 15.04.2024, the petitioner submitted representations to the Registration Office informing them about the expiry of the present term of office on 08.02.2024. It is also stated that clause No.10 of the By-Laws prescribes holding of Annual General Meeting in the last quarter of every year, and Clause No.11 prescribes the manner of conducting the Special General Meeting, and respondents 3 and 4 have not complied with the By-Laws. It is alleged that clause No.12 of By-Laws prescribes issuance of 21 days’ Notice for conducting Annual General meeting with quantum of 1/3rd members entitled to vote but respondents 2 to 4 did not issue such Notice and the

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