Telangana High Court
K.S.Gopal vs The State Of Telangana on 4 February, 2025
HONOURABLE SRI JUSTICE N.V.SHRAVAN KUMAR
WRIT PETITION No. 31957 OF 2023
ORDER:
This writ petition has been filed praying to:
"to call for the records relating the order passed by the 3rd respondent vide Letter No 6309/15291983/Soc/2023, dated 03/10/2023 and quash the same and further direct to seize the records and supersede the managing committee of the 4th respondent-Society in the interest of justice."
2. Brief facts rising to file this writ petition are that the petitioner is claiming to be founder Member of respondent No.4 Society i.e., Deccan Development Society (herein after referred as 'DDS'), vide registered No. 1529/1983 and the said DDS brought an amendment to bye-laws of the Society, which was approved on 07.09.1994. It is submitted that initially the said DDS had purchased lands in many villages by way of donations for the purpose of cultivating and eking out the livelihood of the weaker section of the societies. The Government of the then Andhra Pradesh also provided fund grant in 1994-95 to the said DDS based on public distribution system. Petitioner's further case is that the said DDS withdrew the said funds and transferred them to their own account leading to collapse of the scheme.
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3. Learned counsel for the petitioner would submit that said DDS had already sold 40 acres of land in Mahipatpur (meant for forestry plantation) and 5 acres in Machnoor village and it is still in possession of Ac.79-20 Gts. of land besides Krishi Vigyan Kendra land admeasuring Ac.30. Learned counsel further submit that petitioner came to know that the DDS incurred an expenditure to the tune of Rupees 1.25 Crore on account of Apollo Hospital medical expenses of Late Sri Sateesh, the then Secretary of Society. Subsequently, petitioner issued legal notice on 16.06.2023, for which vague reply was given by the said DDS on 05.07.2023 and without answering any of the allegations / averments made by the petitioner. It is further submitted that DDS have not indicated the dates of resolutions and Annual General Meetings in their reply. Aggrieved by the same, petitioner submitted all to respondent No.3, vide representation dated 21.09.2023. However, the respondent No.3 without conducting any enquiry has passed a mechanical order, vide Letter No.6309/1529-1983/Soc/2023, dated 03.10.2023, which reads as under:
"With reference to the subject and reference cited above, it is to inform that the Society "Deccan Development Society" was registered at this office vide Regn.No. 1529/1983 on Dt. 02-09- 1983. Later, the Society has submitted a request for the amendment of the objectives of memorandum of society and the same was taken into record by this office on Dt. 16-11-1994.3
Thereafter, the society has not submitted any documents for change of the executive body or amendment of bye-laws till date.
Kindly note that Section 23 of the Societies Registration Ac 20 clearly envisages that the Registrar of Societies is not conferred with any power to resolve the internal disputes-of the Society or dispute in respect of any matter relating to the affairs of the Society or an issue regarding the elected members. However, in case of any allegations or complaints of the irregularities found within the members of the Society, the same undoubtedly will have to be disposed of in accordance with the Law and further changes are sub-judice.
Hence, you may kindly proceed with the dispute under the provisions of the arbitration and Conciliation Act, 1996 (Central Act 26 of 1996) or may file an application in the District Court concerned and the said court shall after necessary inquiry pass order as it may deem fit."
4. Learned counsel for the petitioner further submits that Respondent No.3 has every power to supervise, inspect and has general control on the activity of the said DDS and if the DDS fails to comply with the statutory needs like holding periodic meetings and non-submission of financial statements, the respondent No.3 may initiate penal action including cancellation of registration. He would further submits that the respondent No.3 did not make any effort to call the members of DDS for enquiry. Learned counsel for the petitioner further contends that the very purpose of DDS is defeated. He would further submit that instead of meeting such objections, the 4 said DDS has been asking it members to sign on blank white papers and sold the DDS lands. Thereafter, the said amount is being used for unauthorized personal purposes for corporate medical treatment facility and further alleged that DDS is not providing information with regard to statement to the respondent No.3 for the last 29 years. He would further submit that petitioner has also filed Application under Right to Information Act to the Registrar of Society seeking information about Annual Financial Statements and Annual General Body meetings resolution. However, it is informed to the petitioner that DDS has not filed any paper from the year 1994 and the same was brought to the notice of the respondent No.3 about the violation of statutory provisions and violation of its bye-laws. It is further submitted that DDS is not maintaining accounts and records of Society and also not conducting meetings atleast once in a every three months and is not following the said rules prescribed under law. Aggrieved by the same, the present writ petition is filed.
5. Respondent No.3 has filed counter affidavit and would submit that respondent No.4-society has been registered with the Registrar of Societies under Societies Registration Act, and the petitioner was one of the Directors of the Society and requested for amendment of the objectives of Memorandum of Society, dated 06.11.1994, however the said DDS has not submitted any document for change of 5 the Executive Body or Amendment of By-laws till date. Learned Government Pleader would further submit that petitioner has made complaint on 21.09.2023 stating that the functioning of the said DDS is not accordance with Articles of Association or Rules of the Society. The respondent No.3 has replied to the petitioner vide letter, dated 03.10.2023 informing that respondent No.4 Society has not submitted any documents for change of the Executive Body or Amendment of Bye-laws till date and also stated that Section 23 of the Societies Registration Act, 2001 clearly envisages that the Registrar of Society is not conferred with any power to resolve the dispute of the Society and the petitioner was informed to seek remedy under the provisions of arbitration and Conciliation Act, 1996 (Central Act 26 of 1996) or may file an application in the District Court concerned. However, without availing remedy contemplated under law, the petitioner had straight away filed this writ petition and would submit that the writ petition is not maintainable and devoid of merits and pray this Court to dismiss this writ petition.
6. Respondent No.4 filed counter affidavit. Learned counsel, Ms.Sheetal Srikanth appearing for the respondent No.4 reiterated the submissions made by learned Assistant Government for Stamps and Registration and submits that petitioner was one of the Director of Respondent No.4 society. However, the petitioner chose not to 6 actively engage with the society affairs, while other members continue to strive hard and mange the society and by its outreach programmes helped thousands of the weaker section of society. She would further submit that pursuant to the reorganization of the States, the respondent No.4-society is governed by the Telangana State under Telangana Societies Registration Act, 2001.
7. Learned counsel for the respondent No.4 further would further submit that any decisions taken by the society is an internal matter and the same has been taken after due consultation with all interest parties including their members of the society and funds spend by the Society is the sole discretion of the Managing committee of the society and the same will be taken into consideration after taking objections, if any, by all the members of the society. Learned counsel had also placed balance sheet of the respondent No.4-Society for the period between 2018 to 2023 and submits that the said balance sheet is also available on the public domain of respondent No.4-Society website.
8. Learned counsel for the respondent No.4 draws attention of this Court to the order, dated 31.08.2021 passed in WP No.15852 of 2021, wherein similar issue was fell for consideration, wherein respondent No.3 therein i.e., Deputy Commissioner, GHMC, Kapra, issued proceeding dated 06.07.2021 under Section 450 of GHMC Act, 7 which was challenged in the said writ petition. The Hon'ble Court passed the following order and the relevant portion of the order is extracted as under:
i) In view of the above discussion, according to this Court, the bye-laws of the petitioner are not statutory in nature and they do not have any force of law. The remedy available to the petitioner is under Section - 23 of the Act, 2001. This Court is not inclined to declare the proceedings Lr.No.06955/C1/LNZ/GHMC/ 2021-1, dated 06.07.2021, issued by respondent No.3 under Section - 450 of the GHMC Act as illegal and unjust. Further, the petitioner is also not entitled to seek revocation of Building Permit No.3/C1/06693/2021, dated 10.05.2021, issued in favour of respondent No.4 on the ground that respondent No.4 has obtained the same by suppression and misrepresentation of facts, and that he has obtained the same without NOC from the petitioner. As stated above, if at all the petitioner is having any grievance against respondent No.4, more particularly, with regard to violation of its byelaws the remedy available to it is under Section - 23 of the Act, 2001, but not by way of a writ petition. Though the present writ petition is maintainable, it is not an efficacious remedy. According to this Court, the efficacious remedy available to the petitioner is only under Section - 23 of the Act, 2001. Thus, the writ petition is devoid of merits and the same is liable to be dismissed.
ii) The present Writ Petition is accordingly dismissed. The interim order granted by this Court on 16.07.2021 stands vacated.8
iii) However, in the circumstances of the case, there shall be no order as to costs. As a sequel, the miscellaneous petitions, if any, pending in the writ petition shall stand closed".
9. Learned counsel for the respondent No.4 submits that earlier WP No.42251 of 2022 was filed seeking to declare the action of the society therein in not conducing meeting of Executive Committee and General Body and Elections therein as illegal and the Hon'ble Court passed the order on 22.11.2022, which reads as under:
"3. In the light of the provision contained under Section 23 of the Telangana Societies Registration Act, 2001 (for short, 'the Act, 2001') which provides resolution of disputes arising among the Committee or the Members of the society, in respect of any matter relating to the affairs of the society, and also in the absence of any provision provided under the Act, 2001 providing for any supervisory jurisdiction or control to the respondents authorities, this Court is not inclined to entertain the writ petition.
4. The writ petition is accordingly dismissed leaving it open to the petitioner to avail the remedy provided under Section 23 2 of the Act, 2001 or any other remedies as available under law."
10. Learned counsel for the respondent No.4 further submits that earlier WP No.41859 of 2022 was filed seeking to declare the action of the Department of Registration and Stamps therein to consider the petitioner's representation against Educational Society therein complaining certain illegal activities in the society and the Hon'ble Court passed the order on 17.11.2022 , which reads as under: 9
3. The petitioner is an Educational Society registered under the Telangana Societies Registration Act, 2001 (for short, 'the Act, 2001'). A perusal of the provisions contained in the Act, 2001, makes it clear that the respondents have no control or supervisory jurisdiction over the petitioner - Educational Society. If there is any grievance against the petitioner -
Educational society or among its Members etc., they have an effective alternative remedy provided under Section 23 of the Act, 2001. As the respondent authorities have no power or authority to deal with the grievances raised in the above referred representations, this Court is not 2 inclined to pass orders directing the respondents to consider the said representations.
4. The writ petition is accordingly dismissed leaving it open to the petitioner - Educational Society to pursue the remedies as provided under Section 23 of the Act, 2001. There shall be no order as to costs.
11. Learned counsel for the respondent No.4 further submits that without availing alternative remedy available under Section 23 of the Telangana Societies Registration Act, 2001, the petitioner has filed this writ petition, hence this writ petition is not maintainable in the light of above judgments, hence pray this Court to dismiss the writ petition in limine.
12. Heard both sides.
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13. i) In Andhra Pradesh Kuruma Sangam, Hyderabad vs. Registrar of Societies, Andhra Pradesh, Hyderabad 1 this Hon'ble Court held that when a dispute as mentioned in Section 23 of the Act arises, it is required to be resolved by means of arbitration under the Arbitration and Conciliation Act, 1996 or on an application to be filed in the District Court. Such a dispute may be among the Committee members or Society members.
ii) In Khan Abdul Gaffar Khan Memorial Education Society represented by its Secretary vs. District Registrar of Society, Nellore, 2007 2,the Court held that power to adjudicate the internal land dispute of society or to declare the validity of resolution passed by the society, the aggrieved party can approach the District Court by filing a petition under Section 23.
iii) In Pothi Swami & Bros vs. Rao Saheb D.Govindarajulu 3, it was held that if there are disputes with regard to disposal of property, the adjustment of its affairs shall be referred to the Principal Court of Original Jurisdiction concerned and that the said Court shall make such order in the matter including appointment of Liquidator as it deem fit. The Court means in the cities of Greater Hyderabad, the City Civil Court and else where the Principal Civil 1 2003(4)ALD 473=2023 (5)ALT 752 2 (6)ALT 16 = 2007 (6)ALD 709 3 AIR 1960 AP 605 = 1960 (1) AnWR 326 11 Court of original jurisdiction. The Jurisdiction to adjudicate the dissolution of society and adjustment of its affairs is vested in the court of the district where the society's registered office is situated.
14. Section 23 of Telangana Societies Registration Act, 2001 is extracted below for ease of reference:-
"23. Dispute regarding management.
"In the event of any dispute arising among the Committee or the members of the society, in respect of any matter relating to the affairs of the society, any member of the society may proceed with the dispute under the provisions of the Arbitration and Conciliation Act, 1996 (Central Act 26 of 1996), or may file an application in the District Court concerned and the said court shall after necessary inquiry pass such order as it may deem fit."
15. Section 23, of Telangana Societies Registration Act, 2001 mandates that member aggrieved by the affairs of the Society may proceed under the provisions of Arbitration & Conciliation Act, 1966 (Central Act 26 of 1996) or may file an application in the District Court concerned. In the case on hand, the petitioner had not made any submissions as to how the Registrar violated the statutory provisions and by-laws.
16. In the light of the provision contained under Section 23 of the Telangana Societies Registration Act, 2001 (for short, 'the Act, 2001') 12 which provides resolution of disputes arising among the Committee or the Members of the society, in respect of any matter relating to the affairs of the society, and also in the absence of any provision provided under the Act, 2001 providing for any supervisory jurisdiction or control to the respondents authorities, this Court is not inclined to entertain the writ petition.
17. The writ petition is accordingly dismissed leaving it open to the petitioner to avail the remedy provided under Section 23 of the Act, 2001 or any other remedies as available under law. There shall be no order as to costs.
Miscellaneous Petitions, if any, pending in this writ petition shall stand closed.
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JUSTICE N.V. SHRAVAN KUMAR
Date: 04-02-2025
Note: LR Copy to be marked
B/o.
SHA