1. Revision against order dismissing application for rejection of plaint under Order VII Rule 11 CPC in suit for declaration of non-membership and challenging resolutions as illegal. (Para 4 )
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2025 Supreme(Online)(Tel) 56511
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Laxmi Narayana Alishetty, J
Dakka Bheem Prakash Bharath Mohan – Appellant
Versus
Vikas Nagar Welfare Society – Respondent
CIVIL REVISION PETITION No.3463 OF 2024
Important Points
A suit challenging the membership of individuals in a society and alleging fraud is not a 'dispute regarding management' under Section 23 of the Telangana Societies Registration Act, 2001, and thus the jurisdiction of the civil court is not barred.
Subject
Civil Law - Societies Law
Act Referred
Headnote
(A) Telangana Societies Registration Act, 2001 - Section 23 - Code of Civil Procedure, 1908 - Order VII Rule 11 and Section 9 - Jurisdiction of Civil Court - Dispute regarding membership of a society - Whether a suit filed to declare that certain individuals are not members of society and their actions as null and void is barred by Section 23 of the Act, 2001 - Section 23 mandates that disputes among the Committee or members of the society in respect of any matter relating to the affairs of the society shall be resolved under the Arbitration and Conciliation Act, 1996, or by filing an application in the District Court - In the present case, the suit is filed for declaring that certain defendants are not members of the society and have committed fraud - When the very membership of individuals is under challenge, it cannot be said that the dispute is among members of the society regarding management or affairs of the society - The dispute revolves around the status of individuals and false claims of membership, which is a civil matter and does not fall within the ambit of 'disputes regarding management' as defined under Section 23 of the Act, 2001 - Consequently, the jurisdiction of the civil court is not barred. (Paras 11, 13, 15)
Legal Category Hierarchy
- practice and procedure
- societies registration
- dispute resolution
Advocates:
For the Appellants/Petitioners: Vadeendra Joshi
For the Respondents: Philix Law Firm
For the Appellants/Petitioners: Vadeendra Joshi
For the Respondents: Philix Law Firm
Table of Contents
2. Dispute regarding management of society barred under Section 23 of Telangana Societies Registration Act, 2001; jurisdiction of civil court excluded. (Para 5 , 8 )
3. Crux of dispute is membership, not management; suit seeks declaration that defendants are not members, thus not a dispute among members under Section 23. (Para 14 , 15 , 19 )
4. When membership itself is challenged, the dispute is not among members regarding management; Section 23 of the Act does not bar civil court jurisdiction. (Para 15 , 19 )
5. Civil Revision Petition dismissed; no illegality or irregularity in trial court order; impugned order upheld. (Para 21 , 22 )
6. When does Section 23 of the Telangana Societies Registration Act, 2001, bar the jurisdiction of a civil court?
Section 23 bars jurisdiction only for disputes 'among the committee or the members of the society' in respect of any matter relating to the affairs of the society. (Para 11 , 15 )
7. Is a suit challenging the very membership of individuals in a society a dispute regarding management under Section 23 of the Act?
No, when the very membership of the defendants is under challenge, the dispute is not among members regarding management, and Section 23 does not apply. (Para 15 , 19 )
8. Does the remedy under Section 23 of the Act oust the jurisdiction of civil courts for suits involving allegations of fraud and fabrication of documents by non-members?
No, suits involving false representation and fraudulent actions by individuals who are not legitimate members fall outside the ambit of Section 23, and civil courts retain jurisdiction. (Para 7 , 14 , 15 , 20 )
ORDER:
This Revision Petition is directed against order dated 10.09.2024 in I.A.No.461 of 2021 in OS.No.8 of 2021 passed by the XX Junior Civil Judge, City Civil Court, Hyderabad.
2. Heard Sri Vadeendra Joshi, learned counsel for revision petitioner, and M/s Philix Law Firm, appearing for respondent No.4.
3. The petitioner is defendant No.1, respondent Nos.1 to 4 are plaintiff Nos.1 to 4 and respondent Nos.5 to 11 are defendant Nos.2 to 8, respectively, in the suit. For convenience, hereinafter the parties are referred to as they are arrayed in the suit.
4. The facts of the case in brief, required for adjudication of the present Revision Petition, are that plaintiffs filed the suit for the following reliefs:-
(a) declaring that Defendants 1 to 7 were/are not members of 2nd Plaintiff Society and that all the resolutions and consequential actions and transactions taken by the Defendants 1 to 7 or her men or agents in the name of the 2nd Plaintiff Society, without any authority as illegal, null and void ab initio and as such, are not binding on the 1st Plaintiff Society and its members.
(b) declaring that the VIKAS SOCIETY Regd.No.908/1983 was wound up by the special resolution of its General Body dated 09.03.2002 and its assets, liabilities, books of accounts etc., along with the members were transferred to VIKAS NAGAR SOCIETY WELFARE Regd. No.2098/2001 and consequently direct the Registrar of Societies, Red Hills, Hyderabad to take the same on record.
(c) declaring that the 1st Special General Body meeting of VIKAS SOCIETY Regd.No.908/1983, dated 12.11.2017 and the 2 Special General Body meeting of VIKAS SOCIETY, Reg. No. 908/1963, dated 09.12.2017 are illegal, invalid, non-est in the eye of law and consequently, direct the Registrar of Societies, Red Hills, Hyderabad to delete the said resolution from record.
(d) granting perpetual injunction restraining the Defendants 1 to 7 or their men or agents herein from interfering and meddling in any manner with the affairs of the Plaintiff No.1 Society in the name of the Plaintiff No.2 Society which was wound up on 09.03.2002."
5. Defendant No.1 filed an application under Order VII Rule 11 CPC to reject the plaint as barred by law in view of Section 23 of the Telangana Societies Registration Act, 2001 (hereinafter referred to as 'Act, 2001'). In the said application, defendant No.1 averred that the suit pertains to business and disputes between two societies, viz., Vikas Nagar Welfare Society and Village Improvement for Kids and Adults Society (Vikas Society); that as per Section 23 of the Act, 2001, in case of any dispute between the members of the society and also the management or affairs of society, the same should be adjudicated by Principal District Judge having original jurisdiction and as such, suit is barred under Sections 9 and 12 of CPC and consequently, the plaint is liable to be rejected.
6. The plaintiffs filed counter and principally contended that when the suit was filed, the Office of the trial Court took a objection with regard to maintainability of suit, for which the plaintiffs have given clarification that defendant Nos.1 to 7 are not members of plaintiffs' society and that they are claiming to be members of society and office bearers of society; that defendant Nos.1 to 7 submitted false death certificates of original office bearers of the society and fabricated and forged the records of the Executive Body of the society were submitted in the year 2017. It was further averred that the reliefs claimed in the suit are for declaration that defendant Nos.1 to 7 are not members of plaintiff No.2 society and that all the resolutions and consequential actions and transactions taken by defendant Nos.1 to 7 acting on behalf of plaintiff No.2 society are null and void and for other such declarations, therefore, the suit is maintainable. It was further averred that Section 23 of the Act, 2001, mandates that dispute arising among the committee or members of society in respe
