Andhra HC (Pre-Telangana)
Andhra Pradesh Kuruma Sangam vs Registrar Of Societies on 18 June, 2003
Equivalent citations: 2003(4)ALD473, 2003(5)ALT752
ORDER D.S.R. Varma, J.
1. The letter No. 2/276/2002, dated 29-4-2002, issued by the Registrar of Co-operative Societies, Andhra Pradesh, Hyderabad, the respondent herein, advising the petitioner-society (for short "the society") to approach the District Court concerned, is under challenge in this writ petition.
2. The factual background is that the society was originally registered under the Andhra Pradesh Public Societies (Telangana Area) Registration Act, 1350 Fasli (presently the Andhra Pradesh Societies Registration Act, 2001). As provided under the relevant statute, amendments were brought in to the Bye-Laws of the society from time to time. In that course, an amendment was contemplated to the Bye-laws of the society. Consequently, a General Body meeting was convened on 22-12-2001, and a Committee consisting of nine members was also constituted in that regard and the said Committee went into various aspects of the matter and recommended amendment to the existing Bye-laws of the society. Thereafter, the said amendment has been placed before the General Body meeting and a resolution has been passed by majority of members suggesting certain amendments, which were forwarded to the competent authority under the Act i.e., the respondent herein. The procedure as contemplated under Sub-section (4) of Section 8 of the Act was adopted. Thereafter, with certain suggestions, the said resolution has been sent back to the society for fresh consideration. Accordingly, another General Body meeting had been convened on 24-3-2002 and again the earlier recommendations as regards amendment to the Bye-Laws have been passed and the same were forwarded to the competent authority i.e., the Registrar as contemplated under Sub-section (4) of Section 8 of the Act. By way of reminder, the society had addressed a letter, dated 3-4-2002, to the respondent and in response to the said letter, the present impugned proceedings have been issued advising the society to approach the District Court concerned.
3. In this background, it is necessary to refer to the relevant provisions of the Act to the extent relevant:
Section 8:
8 (1): By a "Special Resolution" a society may alter the provisions of the memorandum with respect to,--
(a) change of objectives of the society;
(b) to amalgamate itself with any other society; or
(c) to divide itself into two or more societies.
(2) Subject to the provisions of this Act, and the conditions contained in its memorandum, a society may, by an ordinary resolution passed by not less than 1/2 (half) of the members present and voting alter its bye-laws.
(3) Any alteration of the memorandum of the society shall not be valid unless such alteration is registered under this Act.
(4) If any alteration of the memorandum is filed with the Registrar and if they are not contrary to the provisions of this Act, he shall register the same and shall certify the registration of such alteration under his hand and seal within thirty days from the date of receipt of the resolution. The certificate shall be conclusive evidence that all the requirements of this Act with respect to the alteration and the certification thereof have been complied with and henceforth the memorandum as so altered shall be the memorandum of the society.
(5) Every alteration in the bye-laws of the society should be sent to the Registrar and he shall take it on record if it is not contrary to the provisions of this Act."
4. Sub-section (4) of Section 8 of the Act, in particular, is clear on the aspect of registration of any alterations in the bye-laws of a society. It is to the effect that if any alteration of the memorandum is filed, it is incumbent on the Registrar to register the same and certify the registration within thirty days from the date of receipt of the resolution, provided that if it is found that such resolution of the society is not contrary to the provisions of the Act.
5. Section 23 of the Act deals with the disputes, dissolution and winding up, which reads as under:
"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, 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."
6. Section 23 of the Act specifies that in the event of any dispute arising among the Committee or the members of the society relating to the affairs of the society, any such member who raises a dispute shall take recourse to the provisions of the Arbitration and Conciliation Act, 1996, or an application can be made in the District Court concerned.
7. In the light of the provisions of the above two Sections, it is to be seen that first of all as and when any amendments are to be effected by the society, necessary resolutions have to be passed in the General Body meeting convened by the society and such resolutions shall be made available to the Registrar for registration and certification and if the Registrar finds that there is nothing contrary to the provisions of the Act, within thirty days, registration and certification can be effected.
8. It is to be further seen that Section 8 is a special provision, which deals with Special Resolutions of a society regarding alterations of the provisions of the memorandum of the society. Section 23 of the Act, as already pointed out, is a specific provision, which deals with disputes, dissolution and winding up of the societies. The dispute may be among the Committee or the members of the society, and when such a dispute as mentioned in Section 23 of the Act arises, it is required to be resolved by resorting to arbitration under the provisions of the Arbitration and Conciliation Act, 1996 or on application to be filed in the District Court concerned.
9. In the present case, the amendments were brought into existence by way of, resolution by the majority of members of the society who attended the General Body meeting and the same has been forwarded to the respondent as contemplated under Section 8 of the Act. It is not a dispute that has been referred to the Registrar. However, it is only a resolution with regard to amendments to the memorandum of the society that had been forwarded to the respondent as contemplated under Sub-section (4) of Section 8 of the Act
10. On the other hand, a reading of the impugned letter clearly discloses that it refers to the resolution passed by the society making certain amendments to the memorandum of the society. In such a case, the only obligation, as pointed out earlier, on the part of the respondent, is to ratify and register such resolution as contemplated under Sub-section (4) of Section 8 of the Act.
11. It is neither on record nor indicated in the impugned letter that the society has raised any dispute as such or is there any indication that any member of the society or any member of the Managing Committee raised any dispute.
12. From a reading of the impugned letter, it is clear that the respondent had taken the letter, dated 3-4-2002, addressed by the society as a 'dispute', which is ex facie erroneous.
13. Inasmuch as there is no dispute by any member of the society or member of the Managing Committee, the respondent is at an obligation to consider the same as contemplated under Sub-section (4) of Section 8 of the Act. However, it is clear that the respondent can advise any member of the society or member of the Managing Committee who raises a dispute, that too regarding the resolution or winding up or any dispute relating to the affairs of the society, to approach the District Court concerned or to take recourse to the provisions of the Arbitration and Conciliation Act, 1996.
14. From a bare reading of the impugned letter, I am convinced that the provisions of Section 23 of the Act have totally misconstrued by the respondent.
15. I, therefore, direct the respondent to consider the letters, dated 17-1-2002 and 3-4-2002, addressed by the society to the respondent in the light of the provisions of Sub-section (4) of Section 8 of the Act inasmuch as the said letters are relating to only amendment of the memorandum of the society by way of resolution. The only duty cast upon the respondent, which is explicitly made clear, is that the respondent shall examine as to whether such resolution is inconsonance with the provisions of the Act or not. Therefore, the impugned letter, dated 29-4-2002, is liable to be set aside and accordingly the same is set aside. The respondent is directed to consider the said letters of the society in the light of the provisions contained in Sub-section (4) of Section 8 of the Act
16. In the result, the writ petition is allowed. However, there shall be no order as to costs.