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Hits Pause: in Directors' Turf War
In a swift interim move amid a brewing leadership storm at the ), the has ordered on the state government's nomination of directors. The Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. issued the directive on , in Writ Appeal No. 693 of 2026, stalling implementation of a single judge's controversial order until —or further orders.
The appellants, including General Secretary V.K. Natesan and Vice-President Thushar V.K. Natesan , are challenging a ruling in WP(C) No. 10526/2024 that disqualified them and over 117 other directors for failing to file annual returns, invoking .
Roots of the Rift: A Factional Feud Erupts
, a prominent socio-religious organization founded by Sree Narayana Guru, has been rocked by internal divisions. The writ petitioner, Dr. K. Reghu Anchayil , approached the court alleging governance lapses, leading to the single judge's order disqualifying directors like Natesan for persistent non-filing of returns over consecutive years. This triggered a mandate for the to nominate around 34 directors to ensure quorum for fresh appointments—a process now on hold.
The dispute traces back to earlier power struggles, with the single judge's verdict exposing vulnerabilities in compliance that sidelined key office-bearers. Respondents include the state, registration officials, and rival SNDP figures like Dr. M.N. Soman (President) and others.
Appellants Cry Foul, State Cites Logistics Hurdles
Natesan and allies argued for urgent hearing, warning that government nominations would upend the organization's democratic processes before their appeal could be heard. They highlighted the single judge's direction as premature, urging stay to preserve the board's composition.
On the other side, the writ petitioner backed the disqualification as statutory inevitability under Section 164(2), while state counsel informed the bench that nominating 34 directors in days was logistically impossible. Chief Justice Sen probed orally:
"Are you nominating by Monday?"
—noting no action had been taken yet. Counsel emphasized the real urgency but practical delays in filling quorum gaps.
Bench Balances Urgency with Prudence
No precedents were cited in this interim hearing, but the court focused on the Companies Act's disqualification mechanics: automatic bar for non-filers, yet balanced against organizational stability. The bench noted the government's inaction as a key factor, distinguishing between statutory compliance failures and immediate governance collapse.
By maintaining as on today , the order prevents disruptive nominations, buying time for adjudication. All connected matters—potentially a batch of appeals—will be listed together on , overriding registry defects for expedited hearing.
Key Observations from the Bench
"As of now, it appears that the Government has not nominated the Directors in terms of the impugned order."
"Post onalong with all connected matters."
"as on today shall continue tillor until further orders, whichever is earlier."
These remarks underscore the court's pragmatic approach, prioritizing continuity amid compliance disputes.
What It Means: Temporary Truce, Bigger Battle Ahead
The ruling freezes the single judge's nomination directive, shielding 's current setup short-term. Practically, it averts state intervention that could tilt internal power dynamics, allowing appeals to unfold. For future cases, it signals courts' readiness to grant interim stays in director disqualifications where implementation lags, especially in socio-cultural entities under corporate statutes.
As the hearing looms, this factional saga—pitting compliance rigor against organizational autonomy—could reshape 's leadership for years.
