Allahabad High Court
C/M Maharshi Kapil Muni Shiksha Samiti ... vs State Of U P And Another on 8 December, 2020
Author: Pankaj Bhatia
Bench: Pankaj Bhatia
HIGH COURT OF JUDICATURE AT ALLAHABAD ?AFR Court No. - 38 Case :- WRIT - C No. - 19885 of 2020 Petitioner :- C/M Maharshi Kapil Muni Shiksha Samiti And Another Respondent :- State Of U P And Another Counsel for Petitioner :- Ved Prakash Shukla Counsel for Respondent :- C.S.C. Hon'ble Pankaj Bhatia,J.
1. Present writ petition was filed alleging that the petitioners have dissolved their society by Resolution dated 1.4.2011 in accordance with the scheme of Societies Registration Act, 1960 (in short 'the Act') and have transferred assets and liabilities to the newly created trust in the name of Maharshi Kapil Muni Shiksha Trust.
2. Petitioner claims that in terms of the resolution passed, an application was moved before the Respondent No. 2 for approval of the resolution.
3. Counsel for the petitioner argues that the application filed before the Respondent No. 2 for approval of the resolution dated 1.4.2011 is pending consideration, as such, he prays that a suitable writ, order or direction be issued to the Respondent No. 2 to take a decision on the said application.
4. This Court raised a pointed query to the counsel for the petitioner as to where is the provision prescribed under the Act conferring the power on the Assistant Registrar to approve the resolution passed by the society for its dissolution.
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.
18. The writ petition is disposed off.
Order Date :- 8.12.2020 vinay