Allahabad High Court
Committee Of Management Sri Mahaveer ... vs State Of Up And 2 Others on 1 July, 2024
HIGH COURT OF JUDICATURE AT ALLAHABAD Neutral Citation No. - 2024:AHC:105701 Reserved A.F.R. Court No. - 38 Case :- WRIT - C No. - 10821 of 2024 Petitioner :- Committee Of Management Sri Mahaveer Inter College Respondent :- State Of UP And 2 Others Counsel for Petitioner :- Yogesh Kumar Saxena Counsel for Respondent :- C.S.C. Hon'ble Manjive Shukla,J.
1. Heard Sri Yogesh Kumar Saxena, learned counsel appearing for the petitioner and learned Standing Counsel appearing for Respondents No. 1 to 3.
2. Petitioner through this writ petition has assailed the order dated 01.03.2024 passed by the Joint Director, Secondary Education, Agra Region, Agra whereby, approval sought by the petitioner for amendments in the Scheme of Administration of Sri Mahaveer Inter College, Jauhari Nagar, Mainpuri has been declined.
3. Facts of the case, in brief, are that Sri Mahaveer Vidyalaya, Jauhari Nagar, Esthan Post-Jauhari Nagar, District Mainpuri was a Society registered under the provisions of the Societies Registration Act, 1860. The said Society was managing the affairs of an institution namely Sri Mahaveer Inter College, Jauhari Nagar, Mainpuri. The Scheme of Administration of the College was duly approved by the Joint Director of Secondary Education, Agra Region, Agra. Regulation 6 of Chapter VII of the Regulations framed under the U.P. Intermediate Education Act, 1921 has been amended with the prior approval of His Excellency, the Governor of the State of U.P. and thereby Regulation 6(B) has been added wherein it has been provided that those Intermediate Colleges which are being run by the Society registered under the Societies Registration Act, 1860, 3/4th of the members of the general body of the Society can convert the Society into trust and the said trust must be registered. More than 3/4th members of the general body of the Society in its meeting held on 15.05.2022 took decision to dissolve the Society and for registration of the trust. Thereafter the trust has been registered on 28.05.2022 in the office of the Sub-Registrar, Tehsil Sadar, District Mainpuri. Information about the dissolution of the Society and registration of the trust was duly forwarded to the Deputy-Registrar, Firms, Societies and Chits, Agra Region, Agra and the District Inspector of Schools, Mainpuri on 18.06.2022. The petitioner forwarded all the requisite papers and resolution for making amendments in the Scheme of Administration of the College thereby replacing the Society by the trust, to the District Inspector of Schools, Mainpuri who forwarded papers to the Joint Director, Secondary Education, Agra Region, Agra with his positive recommendation for approval of the amendments sought in the Scheme of Administration of the College.
4. The Joint Director, Secondary Education, Agra Region, Agra raised certain queries and due reply was submitted by the petitioner. Since the Respondent No. 2 did not take any decision regarding approval of the amendments sought to be incorporated in the Scheme of Administration of the College, petitioner filed Writ-C No. 38150 of 2023 which was finally disposed of by a Co-ordinate Bench of this Court with a direction to the Joint Director to consider and decide petitioner's matter in a fixed time frame. The Joint Director, Agra Region, Agra has passed the impugned order dated 01.03.2024 and thereby has declined to grant approval for the amendments sought by the petitioner to be incorporated in the Scheme of Administration of the College on the ground that the proposed amendments are not in the interest of the College.
5. Learned counsel appearing for the petitioner has argued that once Regulation 6 of Chapter VII of the Regulations framed under the U.P. Intermediate Education Act, 1921 (hereinafter referred to as "the Act of 1921") provides that 3/4th members of the general body of the Society can take decision to convert the Society into trust and in the present matter, more than 3/4th members of the general body of the Society which was running the College has taken decision to dissolve the Society and convert it into the trust, the Joint Director, Secondary Education, Agra Region, Agra cannot decline to approve the amendments in the Scheme of Administration of the college consequent to conversion of the Society into the trust.
6. Learned counsel appearing for the petitioner has relied on judgement rendered by a Co-ordinate Bench of this Court in the case of Committee of Management, Maharshi Kapil Muni Shiksha Samiti and Another Vs. State of U.P. and Another 2021 (2) ADJ 517 and has submitted that in the said judgement, it has been held that under Section 13 of the Societies Registration Act, 1860, 3/5th members of the general body of the Society can resolve for dissolution of Society and once the said resolution is passed, the Society automatically stands dissolved. Learned counsel appearing for the petitioner further submits that once the Society in question has been dissolved in terms of the provisions made in Section 13 of the Societies Registration Act, 1860 and consequentially trust has been registered, there cannot be any occasion for the Joint Director, Secondary Education, Agra Region, Agra to deny approval for the consequent amendments in the Scheme of Administration of the College.
7. Learned counsel appearing for the petitioner has also contended before this Court that dissolution of the Society is governed by the provisions of Societies Registration Act, 1860 and further conversion of the Society into the trust has been permitted by making amendment in Regulation 6 of Chapter VII of the Regulations framed under the Act of 1921 therefore, the Joint Director does not have any jurisdiction to adjudicate over the validity of dissolution of the Society and consequent registration of the trust. Learned counsel appearing for the petitioner has further contended that from bare perusal of the impugned order dated 01.03.2024, it can easily be inferred that the Joint Director, in-fact has travelled beyond his jurisdiction and has tried to test the validity of the resolution whereby the Society has been dissolved and the trust has been created.
8. It has also been vehemently argued that there is no dispute by any of the members of the erstwhile Society or by any of the trustee in the amendments sought to be incorporated in the Scheme of Administration of the College consequent to the change of Society into trust, therefore, there cannot be any occasion for the Joint Director to deny the approval of the said amendments, accordingly impugned order dated 01.03.2024 is unsustainable in the eyes of law.
9. Per-contra, learned Standing Counsel appearing for the respondents has argued that the resolution for dissolution of the Society in question and its conversion into trust has not been passed in a proper manner and further 3/4th members of the general body of the Society have not given their affidavits showing their intention to convert the Society into trust, therefore, the Joint Director of Education, Agra Region, Agra has rightly passed the impugned order dated 01.03.2024 and thereby has declined to grant approval to the proposed amendments in the Scheme of Administration of the College.
10. I have considered the rival arguments advanced by the learned counsels appearing for the parties and I find that Regulation 6 of Chapter VII of the Regulations framed under the Act of 1921 has been amended with the prior permission of His Excellency, the Governor of the State of U.P. and thereby under Regulation 6(B), it has been provided that 3/4th members of the general body of the Society running an Intermediate College can convert it into a trust. For ready reference, amended Regulation 6 is extracted as under:
" विनियम-6(क)- यथावत ।
विनियम-6(ख)- जिन संस्थाओं को परिषद द्वारा सोसाइटी रजिस्ट्रेशन एक्ट -1860 के अधीन मान्यता प्रदान की गई है, उनकी प्रबंध समिति की आम सभा की सहमति से सोसाइटी को ट्रस्ट के रूप में परिवर्तित किया जा सकता है। इसके लिये आम सभा के कुल सदस्यों में से तीन चौथाई सदस्यों की लिखित सहमति अनिवार्य होगी। इस निमित उन्हें सोसाइटी से ट्रस्ट के नाम रजिस्ट्री कराना अनिवार्य होगा ।
विनियम-6 (ग)- प्रदेश में आवास विकास परिषद अथवा विकास प्राधिकरणों द्वारा संचालित अथवा संचालित किये जाने वाले विद्यालयों को सोसाइटी अथवा ट्रस्ट के माध्यम से मान्यता प्रदान की जा सकती है । विद्यालय की सोसाइटी यदि यह उचित समझती है कि ट्रस्ट के माध्यम से विद्यालय को संचालित करने में सुविधा होगी तो सोसाइटी की आम सभा के 3/4सदस्यों की लिखित सहमति से सोसाइटी को ट्रस्ट में परिवर्तित किया जा सकता है । इस निमित्त उन्हें सोसाइटी से ट्रस्ट के नाम भू-खंड का दोबारा रजिस्ट्री कराना अनिवार्य होगा ।"
11. This Court is of the view that once appropriate amendment has been made in Regulation 6 of Chapter VII of the Regulations framed under the Act of 1921, the Joint Director, Secondary Education does not have any jurisdiction to oppose the conversion of the Society into the trust.
12. This Court finds that provision for dissolution of Society has been made in Section 13 of the Societies Registration Act, 1860 wherein it is provided that 3/5th members of the general body of the Society can resolve for dissolution of the Society and the dissolution of Society shall take place with immediate effect. For ready reference, Section 13 of the Societies Registration Act, 1860 is extracted as under:
"13. Provision for dissolution of societies and adjustment of their affairs.-
Any number not less than three-fifths of the members of any society may determine that it shall be dissolved, and thereupon it shall be dissolved forthwith, or at the time then agreed upon, and all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities according to the rules of the said society applicable thereto, if any, and if not, then as the governing body shall find expedient, provided that, in the event of any dispute arising among the said governing body or the members of the society, the adjustment of its affairs shall be referred to the principal Court of original civil jurisdiction of the district in which the chief building of the society is situate; and the Court shall make such order in the matter as it shall deem requisite:
Provided that no society shall be dissolved unless three-fifths of the members shall have expressed a wish for such dissolution by their votes delivered in person or by proxy, at a general meeting convened for the purpose:
Provided that [whenever any Government] is a member of, or a contributor to, or otherwise interested in any society registered under this Act, such society shall not be dissolved [without the consent of the Government of the [State] of registration.]"
13. The provisions made in Section 13 of the Societies Registration Act, 1860 have been considered by a Co-ordinate Bench of this Court in its judgement rendered in the case of Committee of Management, Maharshi Kapil Muni Shiksha Samiti and Another (Supra) and it has been held that once 3/5th members of the general body of the Society have resolved to dissolve the Society, dissolution of the Society takes place with immediate effect and it does not require any approval or confirmation by the Deputy Registrar, Firms, Societies and Chits. Relevant paragraphs of the judgement are extracted as under:
"5. Counsel for the petitioner has relied upon the provisions of Section 13 of the Act. There appears to be no such provision, as such, I consider it appropriate to discuss the scope of Section 13 containing a provision for dissolution of societies and adjustment of their affairs. The provision for dissolution of societies and adjustment of their affairs is contained in Section 13, which is as under:
"13. Provision for dissolution of societies and adjustment of their affairs.?Any number not less than three-fifths of the members of any society may determine that it shall be dissolved, and thereupon it shall be dissolved forthwith, or at the time then agreed upon, and all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities, according to the rules of the said society applicable thereto, if any, and if not, then as the governing body shall find expedient, provided that, in the event of any dispute arising among the said governing body or the members of the society, the adjustment of its affairs shall be referred to the principal Court of original civil jurisdiction of the district in which the 'registered office of the society'* (* as amended vide Uttar Pradesh Act 52 of 1975 w.e.f. 10.10.1975) is situate; and the Court shall make such order in the matter as it shall deem requisite:
Provided that no society shall be dissolved unless three-fifths of the members shall have expressed a wish for such dissolution by their votes delivered in person, or by proxy, at a general meeting convened for the purpose:
Provided that [whenever any Government] is a member of, or a contributor to, or otherwise interested in any society registered under this Act, such society shall not be dissolved [without the consent of the Government of the [State] of registration.]"
6. The State of Uttar Pradesh has amended the Societies Registration Act insofar its applicability in the State of Uttar Pradesh is concerned and Section 13A and Section 13B have been incorporated in the Act providing for dissolution of the society in manner other than a voluntary dissolution as provided under Section 13 of the Act, which is quoted hereinabove.
7. Section 13A and 13B amended by virtue of U.P. Act No. 52 of 1975 are quoted as under:-
"13A. Power of Registrar to apply for dissolution:- (1) Where in the opinion of Registrar, there are reasonable ground to believe in respect of a society registered under this Act that any of the grounds mentioned in clauses (a) to (e) of sub-section (1) of Section 13B exists he shall send to the society, a notice calling upon it to show cause within such time as may be specified in the notice why the society be not dissolved.
(2) if on or before the date specified in the notice or within such extended period as the Registrar may allow, the society fails to show any cause or if the cause shown is considered by the Registrar to be unsatisfactory, the Registrar, may move the Court referred to in section 13 for making an order of the dissolution of the society.
13B. Dissolution by court:- (1) On the application of the Registrar under section 13 A or under section 24 or on an application made by not less than one tenth of the members of a society registered under this Act, the Court referred to in section 13 may make an order for the dissolution of the society on any of the following grounds, namely:-
(a) that the society has contravened any provision of this Act or of any other law for the time being in force and it is just and equitable that the society should be dissolved:
(b) that the number of the members of the society is reduced below seven;
(c) that the society has ceased to function for more than three years preceding the date of such application;
(d)that the society is unable to pay its debts or meet its liabilities; or
(e) that the registration of the society has been cancelled under Section 12 D on the ground that its activities or proposed activities have been or will be opposed to public policy.
(2) Without prejudice to the provisions of sub-section (1) or of Section 12D, the Court may on an application of the District Magistrate in this behalf make an order for the dissolution of a society on the ground that the activities of the society constitute a public nuisance or are other wise opposed to public policy.
(3). When an order for the dissolution of a society is made under sub-section (1) or sub-section (2), all necessary steps for the disposal and the settlement of the property of the society, its claims and liabilities and any other adjustment of its affairs take place in manner as the Court may direct."
8. Thus, in the scheme of the Act with regard to dissolution, it is clear that the dissolution of a society can take place by three modes, the first being a voluntary dissolution as provided under Section 13, wherein the requirement is that there has to be a resolution passed by number of members, who are not less than three-fifth of the member of any society and as soon as such resolution is passed, the dissolution happens forthwith or at any time i.e. agreed upon in the resolution. After the dissolution which happens on the passing of the resolution further steps are required to be taken for disposal and settlement of the property of the society, its claims and liabilities according to the Rules of the said society applicable thereto.
9. A perusal of Section 13 of the Act also makes it clear that an inbuilt mechanism is provided for contingencies that may arise in the event of any dispute arising among the said governing body or the members of the society or with regard to the affairs which have to be referred to the Principal Court of original civil jurisdiction of the district in which the registered office of the society is situate and such, Court is empowered to pass requisite orders.
10. A plain reading of the said section makes it clear that no sanction is required from anyone and the Assistant Registrar need not be approached for giving a seal of approval to the resolution of dissolving the society.
11. In addition to the voluntary resolution as provided under Section 13, two other modes of dissolution have also been provided in the State of Uttar Pradesh by incorporation of Section 13A and Section 13B in the Act.
12. Section 13A confers power on the Registrar to apply for the dissolution in the event of contingencies which are enumerated under Section 13A (1) of the Act.
13. Section 13B provides for yet another manner of dissolution by the Court on an application of the Registrar under Section 13A or Section 24 or on an application made by not less than one-tenth of the members of the society registered under this Act and the Court is empowered to pass orders for the dissolution of the society on the happening of any of the grounds as enumerated in Clause (a) to (e) of Section 13B (1) of the Act.
14. Curiously enough Section 13(B) (2) provides yet another mode of dissolution of the society by the Court on an application of the District Magistrate on the limited grounds enumerated therein.
15. Thus, under scheme of the Act, three modes of dissolution are prescribed, first one being voluntary dissolution under Section 13, second being dissolution at the instance of the Registrar and the third being dissolution under the orders of the Court.
16. In the present case, we are concerned with the voluntary dissolution under Section 13, which simply requires the passing of a resolution by the members of the society no being less than three-forth of the total members of the society. Once the said condition is met, no other condition is required to be fulfilled and the same does not require a seal of approval by any officer or authority. In the present case, it is alleged that by a resolution passed unanimously i.e. by more than three-fifth members of the society on 1.4.2011, the society has been dissolved, as such, no further approval is required and the dissolution would be deemed to be effective from the date of its passing i.e. 1.4.2011.
17. As I have recorded above that no seal of approval is required for dissolving the society as has been done in the present case, a writ, as prayed for cannot be granted, however, petitioners are directed to give an information in writing along with the copy of Resolution to the Assistant Registrar of Societies who shall record the same in his records."
14. In the present case, more than 3/4th members of the general body of the Society in question have passed a resolution for dissolution of the Society and registration of a trust, therefore, the Society in question stood dissolved with effect from the date of resolution passed by the general body of the Society. Under the Societies Registration Act, 1860, the Joint Director, Secondary Education, does not have any jurisdiction to test the validity of the resolution of the Society whereby the Society has been dissolved. The Joint Director, Secondary Education also does not have any jurisdiction to test the validity of the registration of the trust, more so when the said conversion of the Society for formation of the trust has been permitted under the amended Regulation 6 of the Regulations framed under the U.P. Intermediate Education Act, 1921. The bare perusal of the impugned order dated 01.03.2024 reveals that the Joint Director in the garb of decision over the approval of the amendments sought to be incorporated in the Scheme of Administration of the College has, in-fact tested the validity of the resolution by which the Society has been dissolved and decision to form the trust has been taken, whereas if any amendment is sought in the Scheme of Administration of a College, the Joint Director has to take decision for approval of the said amendment strictly as per the provisions made in Section 16(A) of the Act of 1921.
15. In view of the aforesaid reasons, this writ petition is allowed and impugned order dated 01.03.2024 is quashed. The matter is remitted to the Joint Director, Secondary Education, Agra Region, Agra to reconsider the amendments proposed by the petitioner in the Scheme of Administration of the College strictly in accordance with the provisions made in Section 16(A) of the Act of 1921 by passing speaking and reasoned order within a period of two months from the date of presentation of certified copy of this order.
Order Date :- 01.07.2024 A. Mandhani