Mr.Brijesh Patel S/O Parashuram Patel vs State Of Karnataka on 12 August, 2009

[Cites 0, Cited by 2]

Karnataka High Court

Mr.Brijesh Patel S/O Parashuram Patel vs State Of Karnataka on 12 August, 2009

Bench: Anand Byrareddy

 

IN THE HIGH COURT OF KARNATAKA AT BANGA1 E T 

SATE-D THIS THE :3" DAY OF AUGUST...4T:2®9TA.,::'  A {  ,  

BEFORE:

THE H()N'BLE MR, JUSTICE'z'x}$IA1§IDV_'f3YRA.E§}3'i§§f)%rfV  

WRIT PETITION Na.14712;2§a99TC:M-K3225 
WRIT PETITION. No. M7i'3.f2():§_):3_ AND  
WRIT PETIIEOZSJ Nr;.1{3782!2€3()9.,  

WRIT PETITION Na.;T;1T1 2x2Q09{§iTM»i{sR3 

Mriﬁrijesh Pa'&%i.;,  %  
S§o.Par5ashi2TaTT3 Pa,Té:'i~,.  -3  T ' " 
Aged abaat 56 years;  .. 
Hsnorary Secretary A _
_  Staté C_:icket,Associati0z2,
T * ~._N€3;...l€7,2,.2nd"~--Main,      
 .Jaya:naha3%EXfen__si0n,
 ._.B':1;1g5aE<;fe¢5'6QT-£){}6. . . . PETITIONER

  a.m®% '$4~»m€~:~é33\ :35 "MG ¢;(3~5"g_)

  L

    State ofléamataka,

Raprescnted by its Secretary;
Departrnﬁnt of Ce-ﬂpcraﬁon,
Gevergament erf Kamamm

Z



Vidhana Saudha,

Bangalore.

The Registrar sf Sacieties, 
No.1? Ali Askar Road,
Bangalnre.

Mr.Siraj Ahmed Chida, "
M3108 

The énquiry Oﬁic¢r;'- ._
Appointed by the " ' _ _
Registrar of Sc3cietieS.,'_  '
No.1338,  Crass, ' 

22116 Main    V  
Jaya1t8§g&:f;---9ﬂ"'B.I<}Gk;f"-- ,   " ; K

   "  V

Manor, _   
Assi§tz_m't Coniroﬁer. Q"?

_ -€7io~ope§atiVeVSeci'etiés, (Retired)
» '5;,PI;$t No.20? .      j .'
. V V"  Séaiithéath and S.R.Residency,
' .   i0§h'Cf0$S,---Nag&Vaf& Paiya,
V V  Bangai£:ré~560 O93.

 . \;',Nataraj,
AA :  Sfd.Sri.Siddalingappa,
a __ _:'ﬂAged about 62 years,
N0.120€.1, 3"' 'A' Main Read,

II Crass, HI Stage, III B300};
Basaveshwaranagaxg
Bangaiars-560 O79.



6. Captain M.M.Ha.rish,
S,f"o.Late M,H.Mudulinganna__,_
Aged about 57 years,
No.159, 20*" Main,
J.P.Nagar, II Phase,    A      
Bangalore. L, . :RE.?SPf_).N})ENTSL..__  :; 

Advocate: for R1 and R2 and 3 

(By Shri;N-B.Vishw:Ii1a«t}g  2~'\2d ¢:':itior:é§l '   €3t;}xémV:AI:<:::V§i
Shn'.Ashwin Halady Adjaccate fqr  " / j.  

WRIT PETITION Ne_;47;%3g2%m9       
BETWEEN:    

Mr.S.K;Ré;n1adhyaﬁ§§"' 
S1'o.S.K,.Ram_,     
Agcd abc>ut'55  V.  
Residing a§£7Ne.i3O{)9i2_,  " . 
'Sri R-am' 222$ Main; "
18"'.'~*?A" (Z3033: "

% i k%  sagaghaa%:;ar;% 11 sage,'
 'Bar3ga:}0.r'¢,=    .... .. PEZTITIONER

 S Patti}, Admcate)

 .__AND: a  

'   "ii  "State QfKarz2a'L1Is:£L

" Represented by its Secretary,
Bepartzneﬁt cf C0-eperation,
Gmsernmezzt of Kamataka,
Vidhana Seadha,

Bangalore.

.2



gt»)

The Registrar of Societies,
N3. 1 , Ali Askar Road,
Bangaiore.

The enquiry Oﬁiaer,
N0.1338, 41 st Cross,
22nd Main Read,
Eayanagar, 93' Block,
Banga!ore~560 O69.

V.Nataraj, _  . 
Sio Shri Siddalingafipa,   V .' " 
Aged about 62 years,     "
No.I20{), 3*?' 'A' Maézzaoacg  % é 
11 Cross, IEI.._vSftagc;_ 111 Bimk,   V   
BasaveShw€iii_1nagar,_  _V  :3 
Baagﬁalogéwséo'   

WuMi;»mm}.,    
SfG:La,.te MV;H.I%'I udu'i*inganz3a_,

_Age(i 4"abO'u1: 5? yégarsj

"  N111 59% 
 V' J;--?.NagaI, II Piiése,

Aéiv

A   BV;;11gal_d§"@__.'

RESPONDENTS

. j_ STi.ii;Vi.N.B.Vishwanaﬂ1, Additional Government:
mate 'for~"R1 and R2 and 3 to 4,

Svh:§.Ashwin Haiady Advacatc far R5 and R6)

   PETI"I'IC3N.Ne.13'782x'2Q{)9

Vliataraj,
S,/e.Sri.Sidda1ingappa,
Aged amut 62 years,



No.1200, 8*" vs; Main Road,
11 Cross, III Stage, 111 Block,
Basaveshwaxanagarg
Bangalare-560 079.

2. Captain M.M.Harish,

 _ 2. .  enqiiV§1'};*..V(;} ﬁ}cf:r,

S./o.Lat.e M.H.Mudulinga;ma,  
Aged about 57 years, ' '
M159, 20*" Main,

J'.P.Nagar, II Phase,

Bangalorﬁ. V  '_   

(Shri Udaya H0133, Seniegr   

AND:

1. The   5
Ne-,1,A1i Aska1'.R0afj%"'« 
Banfgakxrg.  " = V 

A " }~¥pp0i'i:Ied by the
" ~ _ V R.e_§g"i3trai'" {if Societies,
 AN£.§.f§_..33S; -4--};st Cress,
2 22:3d7Main Road,
 Jayém-a.g'ar, 93' Block,
Bangaiare-560 (369.

'    'The Kamataisza State Cricket

' " Asscaciation,
M.Chinnaswamy Stadium,
Bangalore 560 00},
Represented by its President.

2



ORDER

These petitions are heard and:&%spQseﬁ as j 2 pertain to ﬂue same society arising ﬁutz cf "i'he'~ .sam'e;_' s§: t"'~Qf circumstances-

2. The petiti43r@;V:&i12, is prcsentiy the Honcrary Secr6?5fW__ of "(brisket Associatian (Hereinaﬁef. brevity). He is a former has held many positions inc1udiV1Vi"gfi:¢ National Cricket Academy and was also €V3'113j;i-n:aff;, é:E"'utl1¢ Selectian Carrmmittce, Beard ef V' Srmirpl in "Ii:€"iia,io mention twa.

'V V statss that respondents 5 and 6, W110 are ménahcrg' KSCA, art: said to have ﬁled an appiicaiion under Sectimz 25 ef the Karnataka Secieties A _é'R¢Végisféé'atic3n Act, 1960, (Hereiaaﬁer referred ta as the KSR Act, VT "fcir brevity) caliing awn the Registrar cf Sacieties to hold an enquiry inn) aﬁeged financial and ether irrcguiaritics in the @-

management sf KSCA. Pursuant to the same, th¢:..V:2V§z:'§.'}r:r,:Vtary, KSCA was issued a nctice dated 1.9.2007 caI1in§'%%';1l@tt g§i:1'z2; 1o reply ta the aiiegatiens. As the petitien,e_r w}1 t§"i§*a§.';t§1§"S§:§retg}S,. 1' at that paint cf time, had not replietit dated 3.10.2038 was issued réitﬁfatéag 'péjtitionégt was served with a thtrdvrxrgice d£1i6t"ii_¥3.iV"i;2Q{}3' tt3"'the"v$ame effect. Thf: petitianer is said to hate'fi¥éd:é:'de.t.§i§éL§.,'»»St,atemcnt in reply to the same on g i:L:1g;':'1Eé:_itT1'£';-3 that the allegatierns were faise and baseless a1id"w*:rex" intended to tarnish the name of the peﬁ.tL§;gﬁ¢£'3,nd txé"p:a§;¢_z:t him from being elected as ﬁze Secrgtary 'z£.!'. th--.:':jensuiﬁgéiection sf afﬁoer-bearers of KSC-A, which was siatgidta aﬁer the date ef the applicatian. f§1_£§Ii"ly event, the allcgatians related to three issuas: Firstly u had catered inm certain mntracts with {a} MES. _HC_-eimpesite Travefs Pzivata Limited {E} MES S.K.Ram and Sans, V' MES Atlanta pumps private Lté, and (9) Sperting Fmnﬁers (India) Private: Limited ané that the Petitioner as Secretary and we 8 9 S.K.Ra.mdhyani ( Wilil is the petitiajner in WP 3471312009) and (me nther BiN.S22l:ararnanya, a member af the Financial Advisary Cammittect of KSC-A, each ef whom had interests in (me or the other of the above entities, had facilitated and gliéiiizgglized business transactiens of KSCA in favour cf thereby enriching themselves and__V,cHau_$ing_--'lt§is's-- iifci:V§:nuajV iii» KSCA. Marc particularly, it was $1llcg'¢d*~ ii that KSCA had purchased éi-ri'¥3§:k<:té"

Travels' petitioner was the director, for a t:£:viiﬁ;-a.l iéumi 021:" .3ii'ial_}§i*i»,..i{iuring the period 2001 to 2&7. _ The léagistraf ef'--Siii:iieties, by an order dated l0.i2.2£)O8, °'~haéi* reiigiiiiiiiétliznls. 3 and 4 it: laak intn tbs alleged L'--ﬁ.iﬁ«ani¢i§aiii:i:*§ég:}ls§i*ities. It is this, which is sought to be challenged in fire al:§7o'izi: firetition.

n 3}" WP 1471352009 the pefitianer is a mamber of the iii-Eiihiiical Cammittea cf KSCA. He was a member cf the iiiiiianaging mmmittee of KSCA éaring 1§99-2004 and the Vice Pregident during 2004~--2G0'2'. H8 has smught ta challenge the very % IQ enquiry ardered cm similar allsgatiuns made agéiziétv'----I;iaz,__"'as against the petitioner in W? 113712/2()Q9>.

4. In WP 13782f20€}9, théi'-:pet;§'ti:1xfiez53»._;a;:;t§:--' r§;;§::ab§r.gfp£ KSCA. They are arrayed as l;!§§1,iQ§1de¥it£ 'abﬁve petitions. They art: c¢3:;;;.*!u8f'Ai'..*"'_:""'@'1"f»°=.rLA.at.h'xézhuseinstance the Registrar cf Secieties héé under Section 25 9f the KSR is for a direction to the V.a§;dV:"2§;2VV'énquiry ofﬁcer named by him, And for a directian in the p§ﬁﬁ02';$ r*«- to ﬁmctian as an eﬁicer-bearer of ﬂie éﬁqﬁéry.

' S Patél, Senier Advacate for the pmner%;g;x;=p 1471312009 and Shri B.K.Sampath Kumar for ' utht: pcti'£ig;}é;er in VVP 1473219009 contended as fdlewsr = ﬁszscsfar as ﬁzz transactians itself are cencemed, there is .nrf§'£hing irregzziar in KSCA, having transacted with entities ushers ' " any Qﬁice-&arer at other committee member may have 352 g 11 interest. Savers! instances are: cited of such transacti;§n.$i_'ei;2f":he years, in the history of KSCA, where this zitccéptséh practice. The same eannat by itself ﬁnancial gain ta the pctitiene,-rs..__or résazli in ;;hre§e*e11ue_.31oshs {Q KSCA. In any event ails hfﬁer scmtiny as autharised by a . ace-aunts are duly audited. The payment t0 third-

parties are the All bills for payment are transactiens are carried gut ta the Mhnaging Committee, the Finance Comnéitthe Chmmittae asweil as the Genera} body.

- tx .. that the subject, whether tzansaatiens t"§n1»:*;Iving5 fenﬁt§¢s,~" in which 3 member cf the mazzagement has any _ intefest, be pm-hibited, was the-» speciﬁc subject matter if H H K Au"'V.vh..hVtii3a;:1.f.;sitiii:. by the Managing Committee of KSCA as an 19.5.2607

-' its was unanimeiisiy Qpined that the Byedaws of the KSCA " net pmhibit the same and further that there have been innumerahie such transactians ia the past which were duty é 32 appmved by the pzrevious Managing Committee:»:';""

examinin the several transactions that had been..ieetered'-- intci in the immediate past, it was held that s:§.:1:e'cd2:i¥:i~.eeriti1ii;:e«iittlie . best interests of KSCA. < ' ' It is hence contended aiiegatitinsiof ﬁnancial mis-management in the Registrar of Companies was ittetvief Registrar was net bound to the iseuance of the first notice did eat choose to follew it up till he issuedii esecend 5.10.2008. It is clear that it was undef ciutside iriI'§%.2ence and pressure that the Registrar has chosen »te;"ptV&:eedt that stage and net {if his awn matien. For a issued en 4.11.2008 again ceiling upen the peﬁti:iii0::ei*.s;. teiifumish their expianation regarding the allegaﬁezzs. it 'A 'ff ﬁéw an reeord, that the Minister far Ce-{iperaticm ef the State (§£.:1!emment has by his letter dated 25.11.2308, issueé a directien ice the Registrar af Societies ta appoint a Seniar Oﬁicer ':9 held an ezzquiry in to the aileged ﬁnancial irregularitiee ef KSCA anti ta 6 submit a report on the matter wéthin 10 days. It is direction that the Registrar 0f Sacieties has order. By the arder, the Registrar d_ira;g::'{edT é::qi1§j*3{ «csﬁicer to conduct an enquiry in respecf cf_jhe fcll{V§w.i1§:g'i. ' (3) To veri1"y f;n;éE11ci;a!,L'. "£raj§Sa£:tions aznoanting to Rs.5,23,606/~ of S;-IA§_7I{éi;§:§fVéan:i..:§§cs;:i$:v§i:ad Rs.3,o5,3nz- of Atlanta the Kamataka State H "

-(b) T{> of1\rI/'s Compesite Trawzis T Amge Lizégiiedi m';e.11n:;;,%g% io Rs.47,9G,G§2!- (2031-2007) _ Cricket Asseciatien' (0) ﬁﬁ3.¥:{ﬁ:i'al iransactiens sf M55 Sperting Fmniiers _; ' " ,Indiﬁé; L§V.1:?n§I.:~:d (new known as Frontiers Group India ' vPri"v3,:¢ with the Karnataka State Crickﬁ.

,, 1

-jiziféﬁtigaie j into the trazmactiens of Mfs Steiia India limited with the Karnazaka State Czécket . - Assosiationg V' '_«{e) "Y9 verify the cemxnerciai traxlsactions ef the managing cazrmzitsee members.

(i) Te armiﬁa ai} Qtheer irreguiarities ncsticed during inquiryf' @ 14 It ia centended that it is oiiiy it<~;-ms (2.) ta ((2) t11;it'ii..i:i;?{:;'e the subject matter of the appiieatien. It is inexpliéiéblé' Registrar has included items (d) an_dW(¢). fivhéseiiiipiféiitftstaiuhés» 4 would clearly disclose that it is the minister and inﬂuence bm&gihfVi"'b}I the i<;GmpiiaiiiéiitS~~iihat prampted the Registrar ,.-tgi exe;1'e'isei:i: stdmteryr iipoweriiand 3291: an accetizzt of a dispassionaié '_min__d ta tilt: nature cf allegations - dei-i_a,ile_;id.ié3:;3Ihi:iiitioii__Vf:1i*nishcd in respect {if the a11¢gaﬁhung;h:ii Registrar was purporfcdiy acting {in his Qwii rii1'0tioIi-was tiieré was no application ﬂied eithsr by the i tit; Gexiéiiiiag body or 03:3-third of the members of cagnieinplated under Section 25 9f the KSR Act. Ii ,--:.§"3fJI35*ii!'(i3}}1f:iiiIi1.El'£ the decision tn hold an enquiry has not been on ii {:35} .ha;;tivie-"zippiication of mind by 111: Registrar, but at the dictates ~ iihiie: Minister fer C{}-0p6I'ai.i()1} and as seught far by the two " " . Wdomplainaiits.

Z I5 Inseﬁir as the petitioner in WP 14713309 is he has not even been served with a neﬁee, as was xqfi::i'vei'i:»eet:' issued to other members. It is aﬁeréeaming-'_4i of t;;:.:e:ir-gait j said to have been ﬁled by the reports, that the said petitie1nerih'z"i.iS;iVi9:z;3pr0itci1eti'i ii Tkhe petitioner Se{:'i€3_tt3 validity ef the words.:- 'or dim by him by order in writing' -~ KSR Act, as neither the Aet.r'or"t.'zieiA: pravide any indicatien or guideliriee te er competence of the person ta whom the stéitttti)Ij;.;i:e£§ieriit£:i hold an enquiry can be delegated by '--the"iRegi$t:rai*.._In theiiiiliisienee of any such indicatioa or guideline, I suffers free: the vice of excessive deiegatien and"ebéiee'tieii ef its essential ﬁmctiens, by the State Legislature. V' . The Additional Gevernment Adveeate appearing on of the State and the Registrar of See-ieties eentends that it notices had been issued te all the eemmittee members ef KSCA 2 16 on 1.9.2097, 3.202093 and 4.11.2008 ~-- fie previde jexeiijefiatien as regards allegatiens in the complaint said te the petitioners in WP 13732-33;:ze0c9.ee« .ace;dingectGw am 1 Gevemment Advecate, the allegatiorisjeere seeking' in xiaftire¥~;

namely, that organisations had at eemrnercial interest eecvide gceds and services andﬁyat meney ~ as the 3113335033 it was necessary to enquire into. the order passed by the Registrar cannot tcibe ééaigyplieatien cf mind.

Shri Hella, Senier Advecate, appearing for the peﬁﬁeners in WP 13782-832009 centends that the petitioners-"."ejai'e V members who are acutely eeneemed with stenenzisgj net, that has set into the aifairs cf the KSCA and ":Lf"'t§;eiHr'*«_.cencerted effert in eempellieg the atztheriiies to initiate . K eetien to ferret cut the corrupt and the large» scale irregelarities that have been perpetrated by the cﬂice-bearers, such as the 3 17 present Secretary and others of KSCA cantinues t;;};"ti2'i'?; the enquiry new inétiateé is hang over due ta arr2"ve'::2j;t ﬁie truth: j bring the guilty tn} book. The wnrypegimsn :g%he;j¢e 5rc:;g§;: :9 seek cxpeditinn of the enquifg:--V' 'fig "lprésenif Secretary fmm adding fa GEL' and mis-

fcasance even during Insvafar '-.'«;V1.*§ff;I1§_ 2 delinquent {ﬂies- bearers are the same are belated.

The The petitiens bmught in June are ﬁled only in cards: to staﬁ the proceedings. 'V c'.§¥§3i3_tende£iW¥11a!: KSCA is a premier sporting bcdy for A ";:yr_'c'::'w_:_1gc%itit;«.?=é"'-._2.,:n_:__<:¥lfcsgulation ef cricket in the State and is aﬁiliated to V V . the 'B:3a1":i 9'i"'"'(L3ricket Ccmtmi in India. Its activities have gained izvﬁportance having regard to the huge pepularity that the gA:a§In'£:M erzjays. Censmaenﬂy, the aemmercia} activities that '4 Hgccempany the game generate transactiens inveivizzg subsbanﬁal ﬁnances. It therefore is imperative that the managexnent ef the @ 13 aﬁhire is totally transparent without scope for suspiciez2»T"§:a;*::.Tte any possible irregularity in the management of its The instant case, the admitted involvement efiithe managing committee having an aetiVe;_-Aitttereeti in"-entiti.e_s"=with KSCA continues te have husirxess. gelationehips eiahlemnti fniiS1ESi:f.'i; ef efﬁce and dees give __reem fer_iitha_ught «pﬁmeiifacie weuld require a competent auth'-Jtityi'2eV records to satisfy itself that all isf§vel_!. that the Registrar is embariged __ seeking ta chailenge the same is 3 reectiohitiat eat: eiih; to a delinquent eﬁice-bearer "&':h}--' of It is painted eat that the irregularities _Vof.Vi_vt31e<..iTf5criGd 1999.203"; when the petitiener in wp f_ the Heneuraxy Secretary. The signiﬁcant cireureeteeee that he had mt brought to the notice ef the present metﬁging cemmittee ef the repeated notices is 3 farther pointer te V' shady eendeet of the petitiener. The present Managing Committee which is in eﬁice since September 2007 was kept ie the dark ef the game for reaeesﬁaest knew}: to him. It is fer this 19 teaser: that when notices were issued to al1__ft1ie 'wi€_.".-vt'v'.'.--.!,'I'l__ii11'--*..'-*Vi,__tii','{*3;6 members that atieast eight of then: Vhnayfe expressed: to the Registrar ef Societies that an i'en€;i_ti13£ *sieuld_.i'i;eiiti?e1éé3:i:e, while alse mentioning that were" unavsgéise earlieri notices issued tn the KSCA there-uiih-.its-.Seereta13*. is pursuant to this that the Registxar pass the impugned erder.

follewing authorities:

(a; A..é:.Rey vi; sza:eii¢,¢P:»§;as,L ¢;r935)4, sex: 326 .. in supeertii ef eeiztefatien that ﬁie legislature can aiways 4 n 'pr<:_'§{iéeE'__ii:ti3r. sub~i-d;eIe.get1en of powers theugh this is net nermally

-eentext (if the petitioners seeking te question the cie3e_1:giaﬁoVn.ef:--g3tiWer by the Registrar to a named person to hold the i . ._ ,' ,_eRq&i1.§,__ ':.

29 (E) Bangalore Grain Aiercfzanls Asseciaiion Registrar afS0cz'etI'es, ILR .2001 3:412. 76:;

.. wherein it is held that the Regis§trar'¢<::;I£i_ e:%<'€:rt.:.:is;-::V :3:_1i(i_;_11¥:.'nt21 a power on the gsetitrion of even _a sing!¢"meml:yef. ﬁfths treated as a source of infc3r1nati'V£$n._V'f;>i1_wh§£:}:-- act under Section 25.

(C?) Bowﬁng Institute v.$.A';}'7;?.E::;DiY5T"f£f , WA 2044/2008 dared19.12§_$2ﬁ QS ij % f;

Wliéreigijiirajg Bhééﬁvﬂanrdered under Serction 25 an the less than Qncwthird aaf the {eta} membership:'4" V!:f:<:ré- a letter frctm a minister fonazarding a " V. 'cgnépéaikii td"th_e The order for the enquiry was upheld.

" . H "'v"Oih::'§ja:ﬁhVo:iﬁes are cited in suypoﬁ of the ceﬁtention that .__in thé ~itV1f'St&:1Vt ease on hand mala-ﬁdes maid not be attributed to "ii "1:§2;~'::>rH1*1'1:«nistcr who had issued a. direction is the Registrar to held an hyggiquiryp withaut making the miaister a party ta this wrii petitien, @ 21

3. The petitioner in wp 147123909 has ﬁled Wgjndgr ta reiterate and emphasize that there are no want If 4_ part and that it is not for respondent-'"cempl5_inaj§f}§'Vie; j impugned arder.

9. In the above facts « giiestians that arise far consideration _V a} Whether thy enquiij/" '~:iV§i'i'fiatec¥ against the petiiionggrs .14:?.1.;?7':2£){;'9::"3ﬂd"NP 1471322009 by the Registrar Section 25 of the KSR Act are to be quéﬁhgﬁ Vgafi urged ?

b) t}1ié"phraisj:.".; er direct same person autheriscd by ' in writing" {recurring in Seciian 25(1) ef the .' A KVSR 'iiéijnconstitutional.

~ Rﬁsﬁanéenis 5 and 6 in 'WP 14712/2009 have filed an

--' é}€fiIiéﬁﬁ0n before the Registrar of Sucieties said ta be under ' " geetians 25 and 26 of tha KSR Act, 1960 with a prayer ta held an enquiry with regard to the ccmstitution, wsrking and ﬁnancial é 22 condition of KSCA and with particular reference to alleged acts complained of in the applicaiion and to take actien agair:r;t"'!'hc writ petitioners in WP 1471212009 and WP 14713/2eo9.,«rrriy Q A The Regisirar has, by a notice dated tryi the Secretary, KSCA, forwarded seven days.

As there was no reply subiiiiitfséyf ﬁrié has issued further notices dated A reply has been 536$ 4-1 by the petitiozttcr in W?

}4712!2{){iS3;.._ViiBy ~h=itt;:r'ciz§ted 25.11.2008, the Minister for C0- Iwhilé 2761132-sxsing a copy of a paper beak containing mis-management, has directed the Registrar of Si:3:;:i£ti:ities.t{$: éipfioint 3. Seniar Officer 9f the Qcpartrnent to conduct i'-ayny enéguiry and 're submit an actimn - taken report within ten days. he Registrar ef Societies has, by the impugned arder dated

-~-}é.12.€2Ci88, while siting the complaint, the fI{)ti£:£:S issueri, the miz2%s'£e:r's iezftery repiy by the petitioner ané icttcrs {if seven 2 members: of the present managing committee, has opiVz;e¢:;I!"'f12.at the mag peﬁtioners Brijesh Patel ané Ramdhyani Lame transacted as e:sf'Bee---bearers with e;}ti»ties £2: "'s;raHieeIi"~.:tiv1:;-:3! .e_Iu1éid. interests, in alleged breach of trust tg)' e'c§zéeei1é"ee:.1_»11j~re.1:$;'i eﬁiiehieient by misuse ::)f 05396, are al1e§ge£éens thaﬁ: woﬁid ta enquired into and has held that VtheVV:f01l'e'%.aging 'iésues vzeuld require 1:9 be addressed:

(g) Te.-» __ 1:131;anr;ia§.' V 'traveeseaciiens amounting to Rs';5;2ii--;§Q_f;2'e ef.: S&,K.Ra.m and sens and Rs.3,05,311!- ef

-.At¥--at§ta' Lirnited with the Kamalaka State if-zieiéet _ . 'F0 x*e:§i'y.ﬁhe__fi;:e.neia1transaciioe ef M/s Composite Traveis % Limjzee aznmznting te Rs.47,9e,a52;.. (zeoznzom) _ * tﬁe_iKa1nata1ce State Cricket Assoeietien.

." A " {i) the ﬁrganciai transactions of M35 Sporting Froxztiem z Private Limited (now known as Frontiers (hemp India Fﬁvaie Limited) with the Kaznataka State Cricket. Assecéaiion.

6) Te investigate into the transactions cf M53 Stella India ?2*i*s,-me Limited with the Kamatalce State Qgiekei Asst:/eiaiion.

3 24

(k) Te verify the comxnerciai transaciiens conmzittee members. " L. :_ ' (I) To veréfy ali other i11c*:g11!axit§::s;"n0tiéce>d4 :';1qi3i:y.." And has appointed the na1*i:Vt:fi'~43;2q1V1--'iAry' who are both refzired, sér§f21n;fs# 'tr;-su1;mit a repert within one menth. A . ' '.


A _   to the Honourary
Secretary;    1:9 furnish all relevant
 "   for the sittiggs 0f the

enq;iir3% ethar flaciiities and meet such c4>§}3erLA§:x;:;ér:s; £;;§ fnii cwoperation in this regard. . fgrthéf praceedings have been stayed by an interim , 4 jnrecéedings.

:ff'he"';preiiminary objection as regards the delay in ﬁling ' " 'the Vvﬁetitians is adequately explained by the petititzncrs- 'f~¥$.me1}r, that the petitianer in W}? 1472252009 was abread fer ' considerable gieried and hence was nat able ft} challenge tha same, And the othar peﬁtieaner aﬂegediy net having been 8 25 served with any nefice by the Registrar was unaware of the order.

It is seen that 9. reading emf Section and Rule 3 ef the KSR Rules, l9,6»1~~ait mad time n are three situaticens in which tfir; i?.eIgistr33* enquiry. He may act an his 'm,§;vi"..+:noti¥cz11;..:>TrV.if':a rﬁajéﬁty 3f the members of the g<:rJt:~§;1ingw' .gﬂea§f Vdneéthird of the members of tbs suciety-[-'ﬁIé',"é1;1€ seeking such an inquiry . W'3f1.:-:n__§m aafs-..:__3;2-- his metien, the exercise of such pexverés discfctié;1'a;=3;f"*.»L.B11;t if there $3 an appiication made by .21 the members of the governing body, or ' "by Qf 0ne«-'third Of the members cf the Smitty -~ he . " 'enquiry. He has no other optiim. The procedure t;:: %>é'foflawed by the Registrar , in holding the enqairy is as V' Hiijdicafeé in Ruia 8 af the 1961 Rules. Thc Rule is extracted far ready reference.

"8' Enquiry by 1:11: Regstrar: (1) Where the Ragstrar proposed to heid an enquiry unéer Section 25, either 0:: his own 2 26 moticm or on an applicaticm, he or 111% persan auihorisec! by him under the said Section to herld an enquiry 3113,11 issue a notice ta» the seciety concerned in this behalf.

(2) The said notice shall specify a date on.j\jv1*:¥iV;é:i2 ';:s£;zi{:e in which and the time a: which, as also the matters the anquiry wili he held' The notice shall aise Asgéiéigr» ' to ﬁzmish its explanation in respecfi of ﬁzattérg téfeffezi 4 before the date specified in tI1e5notic'é.V__ (3) The society shall its éﬁgignatiéén or the azzthoriged persaint bef0r¢V.s:.ﬁ&:v daie,'

-- 111:2. enquiry, or on such other date or dates téwiiicb that migxt be adjourned, the Registrar 0? the gjérgnggshall ﬁve the society a oral hearing. He may éiso such persons a3 may he considereé necassary. He reievant doczzmetxt. If the society fails £0 furnish its e3j}i$:7;__aﬁén as required under sub~ruie(3) or ta attend the 'éixquizy (Sh tkw date ﬁxed or the adjeumed data the Registrar at the A. ,guthC.a1"ifsed person may proceed with the enquiry ax-parie. (5) On the cnmpleiion ef the: enquiry; iha Regstrar or the aurtherised persigm shail record his finding and ccmmuxuigzate the same 13 the atsxziezty concerned."

3 27

In the present case on hand, the _c;::;.r/Qligz:

to be held an the basis af the :c:3:)m;:!:§j:i1t; ::§é.id respondents, prior to 1.92037-.§nd $1'r§;>§y 't0 ﬂiéi._cen1p3aiﬁt the petitioner Brijesh Patel. x V. R"

The enquiry canstituticrn 01' its ﬁnancial " 'its "marking" as contempI'é.1;§dV the Act. To wit, the a1}¢:géd"B§§j§§h'»i'ateI, S.K.Ramadhyani and anc:::Vii"~:.vz:u¥',«'-- the mcicty involving entiﬁes in which t}§i}'..Iiad~ Entéreéiég and for their enrichment by misuse . . " _ A' oiﬁisé; Théﬁiwer of the Regigtar 4:9 abtain inﬁannation

-"from any seurae, én exercising the S119 mum ";::0w:;~%r,' v net fettered. Tim Registrar has nut fmmd may " < itfregixiarities in the working of the scsciety by referener: it; the !'é£"LII'i'1S ﬁled by the Society 01' with refersnee to any athcr recurds of the Society. As the pmpasal to hold an énquizy is apparentiy on the basis of the camplaint abave referred, it 6 28 might to be deemed that the Registrar is Therefore, it is to be examined whether, pri;1;éi'feeie_;fthere 'was any warrant fer such a measure.

There is no indicatiene'thuat V expressly pmhibit ua nature as between the secie13',;..;,;ed_a1t§r of the governing body 0:' othe{.membe1T'S;":.~ V t V t t jg; were any ﬁnancial eudit ef the aeceunts of awtgmyaueeg ma.

't'"he not referred to. the contents of the snAbmitted""'i33% the petitioner - Patel but has merely V 4¥ie~eS_j.ene of the references on the basis of which the A e.t1qei.:-3' iS4j'.1'§roposed_ ~ Vt the other hand while there ie no; indication of any scarce V' frem which' any issues other than these raised in the cemplaint eeuid be' the subject matter ef the enquiry ~»~ there are two é 29 additional issues inexpiicably included as being the subject» matter ef the enquiry, as rightly pointed out by the the petitioner- This, coupled with two ether n,iv(:rtil;;li point towards the conclusicm of the::iRe:g:iis;1:ai."r.béi';igi ibg.» other inﬂuences. .

Firstly, the Registrar i_ further steps on the complaii1ii=.i_iiii£ti_t;t:1i j_ the initia} notice, enciosing a cepyf pf the Iii:-1 on 3.10.2008 that a secoqé iiéiiaiiiiattive sense, there is a ﬂurry itsi' '-tfesiulﬁng in the impugned ordgr. Namely, tliaxgcticiaii is faiiowed by another netice on r The iiNfii1:-i.=«:t€=;'r fer Co»-eaperatian of the Gavemment of is said to have been approached has farwarded 2. cépfof 3. bot)!-: with a direction ta cenduct an enquiry by 3. i"»-=._i__i'-Iettar datféd ?.5.11.2G{}S.. Seven members of the Governing body ii"i¢pz;é3 by letters dated 1.22.2003, 29.11.2002, 2.:2,:2:30a, .-.1..i :2...2€;e2, 2.12.2m8, 28.11.2008 and 29.11.2008 produced as A i Annexures- R-«S, R-3, R-7, R-6, R-8, R4, R40, to ﬂm Statement € 30 0f Objections in writ petition ne.I4712,/2009 ~ that the acts: (sf mismanagement and; »irrF:g;:ie'39iifie'f:§ ii respect of a peried prier to their weicome any enquiry i ii A The epinien 301%'~..§Xp1f€i$;§§eiii.:'iieig"-.ti3e that the allegations are Serious he enquired into is what may be .a.:e_Aa=: te a ministeriv.

directive additional infermation as ii'iIi;Ii1ere is at: apparent absence ef in arriving at an epinion. The a¥ie;g:_§11i:i'ee.<; of the have not enly been accepted in tete, 1/ aclditianal allegeti-ens. While the petitioners fepilyiiis er rejected as being uetezzable. ifhe power ef the Registrar in held an enquiry eeencat qirestiened «~-- the manner in whieh that pewer is exercised and the remiﬁeaﬁens of such an exercise en the reputation ef persenaiiﬁes involved, especieily when the pmeeedings are given wide publicity in the media ~m easts the petitieners in a sinister 9' 31 light, af which they can ceﬁainly complain as beinﬁéii' their rights and tha czxercise af sue}; pgwer as' L4 and a biased exercise of power \re'it;i2§)ui5_'_'a1i active .a:pg3li<fat%_{$:§:.ef " 'A mind €}I' any basis.

19. There are 1:i2at£_er require to be nested as rightly S Patil. Ruie 8 centemplat¢::_g..a}i, *i_g's;V.$zi<,%g4V:IifQ'iv:>#1';?:ifiénskcgistrar to a Saciety, whenewf:r._h§_ under Section 25, either 0;: his TheVV}§2 gi313fﬁ1<__xfiL:r£:i},;-~'L'fQm¥arding a cap}; «nf the applicaticsn r ._;beena ﬂied---bVy the resgaandents sacking a reply Eran} the

-gpplication is was preferrsd by a majority of the Gﬁvﬁfning Q1' {me-third cf the members, is ta be deprecated. is"a,V__§hechanica} act on the writ of the autlmrity. Apparently €he».S%.§ction itself provides 3. cheak an complaints 91' applicaﬁons VA wbaéing ﬁleetby all and suadry an which tha Registrar crught not to embark cm a ﬁshing ex;/gxeditien, as it is clear that he is obliged to conduct an enquiry only if the condition of n n1a§oi"if}?L:'--;dfA4the Governing body or one-third of the members of such an enquiry, is satisﬁed. Qther"soui*ces« «i33fni*n1ati'on 7. compelling him to initiate any action ottght to 'beings' accepted on its face value with"s'e»néference" to "1nateiiin1 available either by way of returnis"'ﬁledib§Ii.i Vsoeietyr at other records readily available. __()r in An. .sitnetion pnesent notorious activity of that from public records.

fi'e'Bl contenders to the posts of oﬂice--benr.efs of 'even well meaning members of the society," or directions I from ministers at the instance of such only result in the action of the Registrar being said persons and not on an independent ' V V appliicetiiin 'mind.

' it ~.Qne other nspect that is of concern in the present case is the contention that, though wtitlieat casting aspersions on the persens appointed as the enquiry otﬁcer and his assistant, the power delegated to the Regisnnr under Section 25 ef the Act is. § unbridled. In that, he is authorised to direct "sc;:'17:i'e in accordance with the Rates, to hefd"a;: Q_eequir_e;";. Registrar eught to held). Sueh_pers;G:1A::is..Ae1sc> the powers that the Registrar (2) 0f Section 25. The ﬂmevveuehﬁcations or the suitability cf the by the Registrar to can be serious and to situatiens beyond the eentreli-ef the the State.

As eeese in Vp§:_)i'et._".."~» in the present case, the persons , A' ap1.}u§:;1te§i' azje services ef the State Government -~ they ag-.e"ans\?.:efebIeV.'te none except the Registrar. He, in tum, has new eéfeethem except pessibly 3 personal relatienship of "V.,aequeiﬁte_ﬁce. There is no previsien for the payment of ' V"--;j'e:n»u_1}ieratiezz or expenses ef such euﬂaerised persen. In the _,pr-esetzt case, the authorised persen am} his assistant are in be taken care efby the deiinquent society? This iimb of the argument, however, is not addressed in the present case en hand 8 34 and is left open. The above observations in any . taken eote of by the State, in provideieg . balances which are certainly warranted. "

It is also to be observeif-tilratthe.I~Ion'hle:VMtei?.§ter§ of that State Government have their role tinmheg governance of their concerned departr15er1:t." power conferred on age eacrosanet and ought te be or inﬂuence by the the letter and spirit of the conferred on an authority loses its efﬁeaey. in'-»tI1_e'i'hstent case, the proper course for a Minister V' é1«--eomp1a.iateven ifitis of genera} importance is not }i'or"}.1§:nV'te'V";:.r1d'res;e it on its merits and express an opinion while

-V fonztéxgtiiég some to a competent authority, who ought to act V' V' "..je'stporx..the eame in due course. But to return the same to the sender ohthe applicant while indicating the appropriate channel through '4 which it ought to be presented for eensideration. The eﬁect of a Minister forwarding a representatien or a eempiairzt to na 5 35 departrnental oﬁicial, ceupled with a direcﬁuii' ta 'a particular fashion cannot be termediuﬁiaiiytjming ii inﬂuence. This aught ta have been atfoidézd in th§:.'pifes*$nt casa. V Hence for ail of A_t.he in WP 1471233009 and WP Annexure-»L dated 10.12.2002 in'_\K;-7113A'; dated 10.12.2008 in WP Consequently, WP 13782..

iitzkiiziéitiiiizration. However, it is open fer the fresh steps, if in his discretion and on an acii'\:¢'app§'ica.ﬁ{)1i sf mind, th: $811113 is warranted' Sd/-

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