K.S.Gopal v. quash the same

Judgment

1. 2 3 4 The State of Telanoana .Rep by its principal Secretary. Registration J '- gepartment, Secretari-at, Hydera'bad ll:"[Bg::"t General, co-operative Societies Dept, Mozamjahi Market, The Distnct Registrar, (Societies) Hyderabad District, Red Hills, Hyderabad. Deccan Devetopment Society, (ep. ny it- seci"irrv,'i0., , xi"fr,iir"rii!-n"v, 1-11 24t1. Srreet No.5, snydririai'e-uirfii6."i;;;,"i#sumper, Hyderabad_S0b I. ivrHu' I ...RESPONDENTS Petition under Articre 226 0t rhe constitution of rndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to issue a writ' order or Direction, more particurarry, one in the nature of writ of certiorari, cafling for the records rerating the order passed by the 3d respondent vide Letter No. 6309/1529-1g}3rsocr2023, dated o3r10r2023, 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 lA NO: 2 OF 2023 Petition under section i 5'1 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to suspend the managing committee of the 4th respondent-Society, pending disposal of Writ Petition, in the interest of justice Counsel for the Petitioner: SRl. T. RAGHUNATH REDDY

Counsel for the Respondent Nos. 1to3: SRI H. RAKESH, AGP FOR STAMPS AND REGISTRATION Counsel for the Respondent No.4: Ms. SHEETAL SRIKANTH The Court made the following: ORDER HONOURABLE SRI N.V.SHRAVAN KUMAR WRIT PETITION No.319s7 OF2023 'USTICE ORDER: This writ petition has been fited praying to: "to coll for the records relating the order possed by the 3'd respondent vide Letter No 5309/15291983/loc12023, doted 03/10/2023 ond quash the some and further direct to seize the records ond supersede the monoging committee of the 4th respondent-Society in the interest of justice."

7. Brief facts rising to fite this writ petition are that the petitioner is claiming to be founder Member of respondent No.4 Society i.e., Deccan Devetopment Society (herein after referred as 'DDS'), vide registered No. 'l 52911983 and the said DDS brought an amendment to bye-taws of the Society, which was approved on 07.09.1994. lt is submitted that initiatty the said DDS had purchased [ands in many vitlages by way of donations for the purpose of cuttivating and eking out the tivetihood 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 pubtic 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. 2

3. Learned counsel for the petitioner would submit that said DDS had already sotd 40 acres of land in Mahipatpur (meant for forestry ptantation) and 5 acres in Machnoor viltage and it is stitt in possession of Ac.79-70 Gts. of (and besides Krishi Vigyan Kendra tand 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 Apotto Hospitat medicat expenses of Late Sri Sateesh, the then Secretary of Society. Subsequentty, petitioner issued [ega[ notice on 16.06.7073, for which vague reply was given by the said DDS on 05.07.2073 and \/ithout answering any of the atlegations / averments made by the petitioner. lt is further submitted that DDS have not indicated the dates of resolutions and Annual Generat Meetings in their repty. Aggrieved by the same, petitioner submitted atl 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/7023, dated 03.10.2023, which reads as under: "With reference to the subject ond reference cited obove, it is to inform that the Society "Deccon Development Society" wos registered ot this office vide Regn.No. 152911983 on Dt. 02-09- 1983. Loter, the Society has submitted o request for the amendment of the objectives of memorandum of society and the -.r' same wos token into record by this office on Dt. 16-11-1994. 3 Thereofter, the society has not submitted any documents for change of the executive body or amendment of bye-lows till date. Kindly note thot Section 23 of the Societies Registration Ac 20 clearly envisages that the Registror of Societies is not conferred with any power to resolve the internal disputes-of the Society or dispute in respect of ony motter reloting to the affairs of the Society or an issue regarding the elected members. However, in case of any allegotions or complaints of the irregularities found within the members of the Society, the some undoubtedly will hove to be disposed of in accordonce with the Law and further chonges are sub-judice. Hence, you moy kindly proceed with the dispute under the provisions of the arbitrotion and Conciliotion Act, 1996 (Central Act 26 of 1996) or may file an application in the District Court concerned ond the said court shall after necessory inquiry pass order os 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 controt on the activity of the said DDS and if the DDS faits to compty with the statutory needs like hotding periodic meetings and non-submission of financial statements, the respondent No.3 may initiate penal action inctuding cancettation of registration. He would further submits that the respondent No.3 did not make any effort to catt the members of DDS for enquiry. Learned counsel for the petitioner further contends that the very purpose of DDS is defeated. He woutd further submit that instead of meeting such objections, the 4 said DDS has been asking it members to sign on btank white papers and sotd the DDS [ands. Thereafter, the said amount is being used for unauthorized personaI purposes for corporate medicat treatment facitity and further atteged that DDS is not providing information with regard to statement to the respondent No.3 for the last 29 years. He woutd further submit that petitioner has also fited Apptication under Right to lnformation 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 fited 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 viotation of its bye-taws. lt is further submitted that DDS is not maintaining accounts and records of Society and atso not conducting meetings atteast once in a every three months and is not fottowing the said rutes prescribed under [aw. I Aggrieved by the same, the present writ petition is fited.

5. Respondent No.3 has fited counter affidavit and woutd submit that respondent No.4-society has been registered with the Reg.istrar 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 06.1.t .1994, however the said DDS has not submitted any document for change of J 5 the Executive Body or Amendment of By-taws titt date. Learned I Government Pteader woutd further submit that petitioner has made comptaint on 71 .09.7073 stating that the functioning of the said DDS is not accordance with Artictes of Association or Rutes of the Society. The respondent No.3 has reptied to the petitioner vide tetter, 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-taws titt date and atso stated that Section 23 of the Societies Registration Act, 2001 ctearty envisages that the Registrar of Society is not conferred with any power to resotve the dispute of the Society and the petitioner was informed to seek remedy under the provisions of arbitration and Conciliation Act, '1996 (Centrat Act 26 of 1996) or may fite an apptication in the District Court concerned. However, without availing remedy contemptated under [aw, the petitioner had straight away fited this writ petition and woutd submit that the writ petition is not maintainabte and devoid of merits and pray this Court to dismiss this writ petition.

6. Respondent No.4 fited 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 I 6 activety engage with the society affairs, while other members continue to strive hard and mange the society and by its outreach programmes hetped thousands of the weaker section of society. She woutd further submit that pursuant to the reorganization of the States, the respondent No.4-society is governed by the Tetangana State under Tetangana 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 consuttation with att interest parties including their members of the society and funds spend by the Society is the sote discretion of the Managing committee of the society and the same wi[[ be taken into consideration after taking objections, if any, by att the members of the society. Learned counsel had atso placed batance sheet of the respondent No.4-society for the period between 2018 to 2023 and submits that the said batance sheet is atso avaitabte on the public domain of respondent No.4-society website.

8. Learned counset for the respondent No.4 draws attention of this Court to the order, dated 31.08.2021 passed in Wp No.15952 of 2021, wherein simitar issue was fett 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 chattenged in the said writ petition. The Hon'ble Court passed the fottowing order and the retevant portion of the order is extracted as under: inclined to declore the i) ln view of the obove discussion, according to this Court, the bye-laws of the petitioner ore not stotutory in nature ond they do not have any force of low. The remedy ovoilable to the petitioner is under Section - 23 of the Act,2001 . This Court is proceedings Lr.No.06955lCl ILNZ|GHIAC/ 2021-1, doted 06.07.2021 , issued by respondent No.3 under Section - 450 of the GHIAC Act os illegol ond unjust. Further, the petitioner is olso not entitled to seek revocotion of Building Permit No.3lCl/0569312021, dated 10.05.2021, issued in favour of respondent No.4 on the ground thot respondent No.4 hos obtained the same by suppression and misrepresentotion of focts, ond that he has obtoined the some without NOC from the petitioner. As stated above, if at all the petitioner is having any grievonce ogainst respondent No.4, more particulorly, 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 mointoinoble, it is not an efficacious remedy. According to this Court, the efficocious remedy ovailable 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. I 8 iii) However, in the circumstances ol the case, there sholl be no order os to costs. As o sequel, the miscelloneous petitions, if any, pending in the writ petition sholt stond closed',.

9. Learned counset for the respondent No.4 submits that ear(ier WP No.42251 of 2O2Z was fited seeking to dectare the action of the society therein in not conducing meeting of Executive committee and General Body and Elections therein as ilegat and the Hon'bte Court passed the order on 22.11.2022, which reads as under: "3. ln the light of the provision contoined under Section 23 of the Telongono Societies Registrotion Act, 2001 (for short, ,the Act, 2Nl') which provides resolution of disputes orising among the Committee or the lvlembers of the society, in respect of any motter relating to the offairs of the society, ond olso in the absence of any provision provided under the Act,2001 providing for ony 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 leoving it open to the petitioner to ovoil the remedy provided under Section 23 2 of the Act, 2001 or ony other remedies os available under law.,, 10- Learned counsel for the respondent No.4 further submits that eartier WP No.41859 of ZOZZ was fited seeking to declare the action of the Department of Registration and stamps therein to consider the petitioner's representation against Educationat Society therein comptainrng certain ittegat activities in the society and the Hon,bte Court passed the order on 17.11.2022, which reads as under: { q

3. The petitioner is on Educational Society registered under the Telongona Societies Registrotion Ad,2Aol ffor short, 'the Act,2001'). A perusal of the provisions contoined in the Act, 2001 , mokes it clear thot the respondents hove no control or supervisory jurisdiction over the petitioner - Educotional Society. lf there is any grievonce against the petitioner - Educational society or omong its Members etc., they hove an effective alternotive remedy provided under Section 23 of the Act, 2001. As the respondent outhorities have no power or authority to deol with the grievonces roised in the above referred representotions, this Court is not 2 inclined to poss orders directing the respondents to consider the soid representotions.

4. The writ petition is accordingly dismissed leaving it open to the petitioner - Educationol Society to pursue the remedies os provided under Section 23 of the Act, 2Nl . There shall be no order as to costs.

11. Learned counsel for the respondent No.4 further submits that without avaiting atternative remedy avaitabte under Section 23 of the Tetangana Societies Registration Act, 2001, the petitioner has fited this writ petition, hence this writ petition is not maintainabte in the tight of above judgments, hence pray this Court to dismiss the writ petition in limine.

12. Heard both sides. 10

13. il ln Andhra pradesh Kurumo Songom, Hyderobod vs. Registror of Societies, Andhro prodesh, Hyderobadl this Hon,ble court hetd that when a dispute as mentioned in section 23 of the Act arises, it is required to be resotved by means of arbitration under the Arbitration and concitiation Act, 1996 or on an apptication to be fited in the District court. such a dispute may be among the committee members or Society members. ii) ln Khon Abdul Goffor Khon tiemoriol Education Society represented by its Secretory vs. District Registror of Society, Neuore, 2oo77,the court hetd that power to adjudicate the internal land dispute of society or to dectare the vatidity of resolut.ion passed by the society, the aggrieved party can approach the District court by filing a petition under Section 23. iii) ln Pothi Swami &. Bros vs. Rao Soheb D.Govindarajului, it was hetd that if there are disputes with regard to disposat of property, the adjustment of its affairs shatt be referred to the Principat Court of originat Jurisdiction concerned and that the said court sha[[ make such order in the matter inctuding appointment of Liquidator as it deem fit. The court means in the cities of Greater Hyderabad, the City Civit Court and etse where the principat Civit 12003(4)ALD aD.7O23 (5)ALT 752 ' (6)ALT r 6 = 2oo7 t6lALD 7og 'AIR 1960 AP 605 l95O (1) AnWR 326 11 Court of original jurisdiction. The Jurisdiction to adjudicate the dissotution 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 Tel,angana Societies Registration Act, 2001 is extracted betow for ease of reference: - "23. Dispute recardinc monoeement. "ln the event of ony dispute arising among the Committee or the members of the society, in respect ol any motter reloting to the offoirs of the society, any member of the society may proceed with the dispute under the provisions of the Arbitrotion ond Conciliotion Act, 1996 (Centrol Act 26 of 1996), or may file an opplicotion in the District Court concerned ond the said court sholl ofter necessary inquiry poss such order as it may deem fit."

15. Section 23, of Tetangana Societies Registration Act, 2001 mandates that member aggrieved by the affairs of the Society may proceed under the provisions of Arbitration & Concltiation Act, 1966 (Centrat Act 26 of 19961 or may fite an apptication in the District Court concerned. ln the case on hand, the petitioner had not made any submissions as to how the Registrar viotated the statutory I provisions and by-taws.

16. In the tight of the provision contained under Section 23 of the Tetangana Societies Registration Act, 2001 (for short, 'the Act, 2001 ') 72 -III\ffi \c; 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 socrety, and atso in the absence of any provision provided under the Act, 2OO1 providing for any supervisory jurisdiction or contro[ to the respondents authorities, this Court is not inctined to entertain the writ petition. 17' The writ petition is accordingry dismissed teaving it open to the petitioner to avait the remedy provided under Section 23 of the Act, 2001 0r any other remedies as availabte under raw. There shalt be no order as to costs. Miscetlaneous petitions, if any, pending in this writ petition sha[[ stand ctosed. ,TRUE COPYII SD/. P, PADMANABHA RE DDY T REGISTRAR ASSIS TION OFFICER THE HONOURABLE SRI JUSTICE N.V. SHRAVAN KUMAR (For His Lordship,s Kina eerusaii 11 L.R. Copies. The Under Secretary. !n!9n of India, Ministry of Law, Justice and Company Affairs. New Delhi. The Secretary, Telanoana Advocates Association Library, High Court Buildings, Hyderabad. +3:,nfJi-:tJ!fil secretary, Resistration Department, secretariat, General' co-operative Societies dept.Mozamiahi Market, I?3"5;35j'u,- itr$+:.,gifrry5ffiff'fftrrmffi,ffi Two CD Copies \ \ To, 1 2 3

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8. 9. 10 11 BM GJP s HIGH COURT DATED:0410212025 \ 7 /.r o, rE(-l .9 .$ $ &gtn + ti *lo ll! K' ORDER WP.No.31957 of 2023 DISMISSING THE WRIT PETITION WITHOUT COSTS @"ia w*