Madras High Court · 2009

When the matter came up before us on 25.6.2004, afterhearing the Election Officer as well as the learned counsel forthe appellants, we passed the following order:'... Final report of the Election Commissionerdated 23.6.2004 is placed before us for confirmation. The Election Commissioner also reports that theelected office bearers have already got installed totheir respective office, pursuant to which they haveto fill up the other constituent posts. Therefore, before passing a final order in the subject, we are ofthe considered opinion that all the constituent postsare to be filled up and reported to us so that therewould not be any constitutional flaw in filling up theposts under the constitution of each of the synod aswell as the Apex Body of the IELC and also indetermining their period. The Election Commissioneris directed to give suitable direction to all the https://hcservices.ecourts.gov.in/hcservices/ three synod units as well as the Apex Body and afterfilling up such constituent posts, the appellant isdirected to implead all of them as party to theproceedings.

The above observations/directions arewithout prejudice to the rights of any aggrievedparties against the elected office bearers. Post fororders after three weeks.'3.2. In compliance with our directions dated 25.6.2004, itis reported by the Election Officer that all the constituentposts were duly filled up and the new incumbents have also takencharge of the respective post. 3.3. Rev.S.Rajagambeeram, Rev.K.S.Davidson, Rev.J.Sensar, Rev. Giften E.Joshua, J.Gnanajothy, and Rev.P.K. Pauldurai, representing the office of the Apex Body of IELC as President, Vice President, Secretary, Comptroller, Treasurer and ElectionOfficer respectively have appeared before us today.3.4. However, newly elected officers could not confirmwhether the registration of the Apex Body of IELC under theprovisions of the Societies Registration Act, 1860, continues tobe in force under the provisions of the new Act, viz. SocietiesRegistration Act, 1975, by periodical renewal, as contemplatedunder law, as in the absence of any such renewal, the Apex Bodyof IELC would itself become defunct.

Consequently, the electionconducted to the post of office bearers of IELC would becomefutile exercise and therefore, it may not be proper for this Court to approve the election of a defunct society, withoutregulating the registration, inasmuch as the office bearers ofthe Society also representing the IELC Trust Association, whichis said to have been incorporated under the provisions of the Companies Act, as the Trust Association is managing vastproperties both movable and immovable, apart from havingestablished and administering several schools (elementary, middle, secondary and higher secondary) and also hospitals.3.5. In that view of the matter, the elected members aredirected to regulate the registration of the Synods as well asthe Apex Body in the manner known to law and report the matterto this Court within eight weeks, to enable this Court toapprove their election. 4. In the meanwhile, taking into consideration the workrendered by the Election Officer Mr.R. Baranidharan, inconducting the election to the post of Office bearers of Trivandrum and Nagercoil Synod, we direct the Central BusinessOffice of the Apex Body to pay the following remuneration withina period of two weeks from today, (a) a sum of Rs.65,000/- payable to the Election Officerand Rs.15,000/- payable to the Assisting Officers, viz.

Mr.G.Rm.Palaniappan and Mr.K. Magesh, at the rate of Rs.7,500/-each, for conducting election to the post of office bearers of Trivandrum Synod; and https://hcservices.ecourts.gov.in/hcservices/ (b) a sum of Rs.65,000/- payable to the Election Officerand Rs.15,000/- payable to the Assisting Officers, viz. Mr.G.Rm.Palaniappan and Mr.K. Magesh, at the rate of Rs.7,500/-each for conducting election to the post of office bearers of Nagercoil Synod. Post the appeals after eight weeks along with C.S.No.674 of1997."

This Hon'ble Court by further orders dated31.3.2004, issued directions for conduct of the circle and synodelections to both the Nagercoil and Trivandrum Synods, approvingthe dates and the venue for conduct of the elections. (2) It is stated that the Elections to Ambur Synod wasconducted from 1.12.2003 to 4.12.2003, the elections to Trivandrum Synod were conducted from 29.4.2004 to 1.5.2004 andthe elections for Nagercoil Synod was conducted from 3.5.2004 to5.5.2004. The Elections to the post of IELC, President was heldon 6.6.2004.(3) It is stated that pursuant to directions of this Hon'ble Court, it was verified whether, the present List of Voters to all the three Synod Elections were duly registeredwith the Registrar of Societies. It is further stated that onverification, it was found that the IELC, which was claimed tobe a registered society was not duly continued as registeredsociety with the Registrar of Societies for the past 35 yearsand the members list was also not duly registered with the Registrar of Societies.

(4) The above fact was not being brought to the notice ofthe Advocate-Commissioner/Election Officer, during the conductof election, by either parties or the persons who were acting as Office bearers. In the abovesaid circumstances, it is humbly prayed thatthis Hon'ble Court may be pleased to record the above fact andpass such further or other orders as this Hon'ble Court deem fitand proper. https://hcservices.ecourts.gov.in/hcservices/ Dated at Chennai, on this 22nd day of December, 2004.sd/-ADVOCATE-COMMISSIONER15. In the order dated 22.12.2004, this Court also found that areading of the report of the Advocate/Commissioner dated 22.12.2004clearly shows that the list of voters, members of the IELC Apex Body andthe synods were not duly registered with the Registrar of Societies andin that event, the very conduct of the election as well as the resultthereon became a nullity and lacked legal sanctity for want of complianceof the registration of the Constitution and the By-laws of the Societieswith the Registrar of Societies.

16. Taking into consideration the report filed by the IELC statingthat there are about 101 educational institutions, such as primaryschools, elementary schools, middle schools, high schools and highersecondary schools, three hospitals with two nursing institutions and vastlanded properties of an extent of 440 acres carrying on many social, religious and charitable activities having transactions with the aid of State and Central Government funds and foreign donations, this Court wasof the considered opinion that since the IELC Apex Body as well as Synodsbecame defunct for want of registration under the provisions of the TamilNadu Societies Registration Act, the above social, religious andcharitable activities should not suffer, as it would otherwise affect theneedy and innocent public.17. This Court, finding it an absolute necessity to regulate theregistration of the Apex Body as well as Synods in accordance with theprovisions of the Tamil Nadu Societies Registration Act 1975 and also toregulate the entire affairs, administration and management of the Societyin question, came to the conclusion that an interim arrangement isinevitable, as agreed by the learned counsel appearing on behalf of allthe parties in the above appeals, namely, both the elected office bearersand the contested candidates.18.

Accordingly, a joint memo dated 22.12.2004 was filed by bothelected Office bearers and contested candidates which reads as under:-"1) The operation of all accounts in Central BusinessOffice, Nagercoil pertaining to IELC Apex Body and IELC TrustAssociation shall be operated by Rev.S.Rajagambeeram and Rev.C.Thankappan jointly who shall function as InterimAdministrators, who alone shall represent the IELC TrustAssociation for any financial transactions.2) All the legal matters touching upon the Churches andvarious institutions belonging to the Church shall be representedjointly by Rev.S.Rajagambeeram and Rev.C.Thankappan3) The entire administration management and financial https://hcservices.ecourts.gov.in/hcservices/ affairs for Ambur Synod shall be controlled by Rev. FredirickPrasad and Rev.A.Thangaraj as interim administrators, who shallexercise their control over the institutions within thejurisdiction jointly.4) The administration management and financial affairs for Nagercoil Synod shall be controlled by Rev.

Muthuraj and Rev.M.Wilson as interim administrators who shall exercise theircontrol over the institutions within the jurisdiction jointly.5) The administration, management and financial affairs ofthe Trivandrum Synod shall be controlled by Rev. Stephanose and Rev. Jeevaraj as interim administrators who shall exercise theircontrol over the institutions within the jurisdiction jointly.6) In so far as the appointment of correspondents tovarious Special Schools belonging to IELC (Deaf Schools and BlindSchool, etc.) which is a honorary post and which remains vacant, the appointment shall be made jointly by Rev.S.Rajakambeeram and Rev.C.Thangappan to avoid any dislocation in the management andadministration of schools.7) No other appointment shall be made during the periodwhen the interim management is in control of the IELC Apex Bodyand the three synods, Ambur, Trivandrum and Nagercoil pendingfurther orders of this Hon'ble Court.8) The payment of salary, pension, P.F. Contribution andother retirement benefits to the Pastors and IELC workers andmaintenance of Boarding schools shall be made by Rev.S.Rajakambeeram and Rev.C.Thangappan jointly.9) The administration and management of all the hospitalsfunctioning under IELC Apex Body shall be administered, managedand controlled by Rev.S.Rajakambeeram and Rev.C.Thangappanjointly.10) The interim management made to the Apex Body and thethree synods namely, Ambur, Trivandrum and Nagercoil is for aperiod of 3 months subject to further extension, modification, variation as deemed fit by this Hon'ble Court suo motu or on anapplication if it is so advised within which period theregistration of the Society shall be regulated under the Societies Regn.

Act.11) Notwithstanding any order obtained or to be obtainedfrom any subordinate Courts within the jurisdiction of India withreference to the matters touching administration, management andaffairs of IELC Apex Body and three Synods, this interimarrangement prevail.12) Any policy decision or financial transactions by theinterim administrators for the Apex Body and three Synods shallbe duly counter-signed by the Inspector General of Registrationor the officer authorised by him among Additional I.G./Asst.I.G., Vigilance as the case may be pending regularisation of Registration of the IELC Apex Body and three Synods and not under https://hcservices.ecourts.gov.in/hcservices/ the provisions of the Act.13) The above interim administrators for IELC Apex Body andthree Synods shall file monthly reports in the above appeal on orbefore 7th of every succeeding month.14) In case of difference of opinion between theadministrators in matters relating to administration the sameshall be referred to the Inspector General of Registration or anyofficer authorised by him, as stated above in Clause 12 forproper guidance.

"19. In view of the above memo of interim arrangement dated 22.12.2004,this Court set aside all the elections to various offices in three Synodsas well as IELC Apex Body and directed the respective interimAdministrators to take charge of the IELC Apex Body as well as Synods.20. This Court by order dated 22.12.2004 also directed the interimAdministrators to regulate the continuity of registration of the IELC ApexBody and three Synods, namely, Ambur, Trivandrum and Nagercoil Synods byregistering the Constitution and the By-laws with the Registrar of Societies in consonance with the provisions of the Tamil Nadu SocietiesRegistration Act 1975 on or before 31.01.2005 and also to finalise thequalified members of the IELC Apex Body and the three Synods as well asthe voters list as per the provisions of the Constitution and the By-lawsof the IELC Apex Body and the respective three Synods registered with the Registrar of Societies as on 31.01.2005 and submit a final report to this Court duly countersigned by the Registrar of Societies or the authoritiesauthorised by him among Additional I.G./Asst.

I.G., Vigilance, as the casemay be, on or before 28.02.2005. This Court accordingly directed thematter to be posted for further orders during second week of March, 2005.21. The Special Leave Petition filed against the above-said order ofthis Court dated 22.12.2004 has also been dismissed by the Supreme Courtby order dated 11.2.2005 in SLP(C) No.2197 of 2005.22. In the meantime, one of the Administrators filed C.M.P.No.7894 of2005 to permit interim Administrators to function as Correspondents/Managers of the educational institutions within thejurisdiction of the respective Synods. This Court, by order dated27.4.2005, clarified that the Correspondents/Managers of the educationalinstitutions within the jurisdiction of the respective Synods shalldischarge their duties and functions as prescribed in Tamil NaduRecognised Private Schools (Regulation) Act, 1973, except making freshappointments in the existing or future vacancies until further orders ofthis Court.

This Court also directed the District Educational Officersconcerned to monitor the management and administration of the educationalinstitutions within the jurisdiction of the respective Synods.23. Today, when the matter is taken up for hearing, two memos arefiled; one by Rev.C.Thankappan, Administrator of IELC Apex Body and https://hcservices.ecourts.gov.in/hcservices/ another by Rev.A.Thangaraj, Rev.M.Wilson, Rev.Y.Muthuraj, Rev. Stephanoseand Rev. Jeevaraj, Administrators of Ambur, Nagercoil and TrivandrumSynods, which read as under:MEMO SUBMITTED BY THE ADMINISTRATOR OF IELC. 1) It is submitted that as per the direction of the HighCourt to regularise the registration, we approached the DistrictRegistrar of North Madras with all available documents such as Audited Statements from 1975 to 2004, members list, bye-laws andconstitution and the list of office bearers from 1975. Outapplication was processed by the Registrar and it was returneddue to insufficient documents for renewal of registration.2.

It is submitted that the Registrar of North Madras hadsuggested to request the Government for exemption in filing ofreturns stating the bona fide reasons for non-filing of returnsduring the past years. As per the instruction, we have sent anapplication to Secretary to Government, Commercial TaxesDepartment through the Registrar of North Madras and the I.G. of Registration by explaining the reasons for non filing ofreturns.3. It is submitted that now the file is at the office of theI.G. for Registration for their recommendation to Government forgranting exemption in filing of return.4. It is humbly submitted that we came to know that normallyit takes one or two months time for a file to be processed inthe I.G. Office due to their heavy work load. So, we areexpecting a reply from the Government to process further.5. It is submitted that as per the direction of this Hon'bleCourt, the funds being channelised to our Institutions andprogrammes with the help of the I.G. for Vigilance and thenormal administration has been carried out during the past sixmonths by us.6.

It is submitted that as per the Memo clause 9 – twohospitals out of three were brought under the control ofadministrators. One hospital named 'Bedestha Hospital' locatedat Ambur claims as separate entity by the unauthorised/illegalregistration made in 1995 in the Registrar office at Vellore. This was done by a few workers in the Hospital along with thehelp of the then President Rev.J.Isaac Moon illegally. Hence,a direction from the Court is needed to cancel the registrationof the above-said hospital so as to bring it under the controlof IELC.7. It is submitted that while administering thehospitals/institutions, we find practical difficulty to checkout the retired persons those who have crossed 60 years andclaiming high salaries which cause heavy loss to theinstitutions. They claim that the administrators are not theauthorised officer/competent authority to send them out. So, nowwe request the Hon'ble Bench to clarify whether the https://hcservices.ecourts.gov.in/hcservices/ administrators are authorised to relieve the retired persons.

Especially, one doctor named J.C.Vijayan of Karunalaya Hospital, Wondoor, Kerala, who crossed 60 years in 2003 itself nowclaiming himself as a permanent doctor and doing all kinds ofmischievous activities and consequently name and reputation ofthe hospital is getting spoiled. Therefore, the Administrator prays that this Hon'ble Courtmay be pleased to accept this Memo and thus render justice. Dated at Chennai on this the 12th day of August, 2004.Sd/- xxx(Rev.C.Thankappan) Administrator of IELCMEMO SUBMITTED BY THE ADMINISTRATORS OF AMBUR, NAGERCOILANDTRIVANDRUM SYNODS.1. It is submitted that as per the direction of the Hon'bleHigh Court, the administration of the three synods namely, Ambur, Nagercoil and Trivandrum are being carried out smoothlyby us.2. It is submitted that the administrators of the synods arepreparing the genuine members lists of the synods with the helpof all the congregations and the pastors in the synods.

So asto check the dual role of the members, the pastors are asked toverify and the members are asked to produce the S.S.L.C. Firstpage to confirm as Christians and the converts are asked tonotify in the Government Gazette to get membership.3. It is submitted that the placements of the pastors in thecongregations in IELC is not done by the direct appointment oftransfers. The special procedure has been adopted ever sincethe congregations are formed. The congregation will send a'Divine Call' to the pastors to serve in the congregations, onthe acceptance of the call by a pastor, he will be installed forthat particulars congregation. Besides, the new congregationsare emerging gradually and the fresh candidates coming out withB.Th. from seminary are assigned to take care of the newcongregations. But it is not an appointment. So, there are alot of congregations suffering without pastors to take care, insuch situations the administrators are assigning the freshcandidates to take care of them for the smooth running of the Church.4.

It is submitted that when the order was passed on22.12.2004 by the Hon'ble Division Bench, the teachers ratio inthe schools, was in good order. Whereas now number of teachersgot retirement in the month of May, 2005 and many posts becamevacant. The students are suffering without proper teachers. The other teachers find difficult to manage these classes. As aresult, the quality of education is going down day by day. Therequirement of the education department the vacant posts are to https://hcservices.ecourts.gov.in/hcservices/ be filled up urgently. In this juncture, the interimadministrators of each synod shall be permitted to prepare aseniority lists of each synod by calling the applicationsthrough the pastors from the candidates and finalising theseniority list without any bias and also in accordance with theconstitutions and to submit it to this Hon'ble Court forapproval to fill up the vacancies.5.

It is submitted that as per the order of the Hon'bleBench dated 8.4.2005, the status quo as on 22.12.2004 has beenmaintained in the honorary posts of correspondents and managerswith a limited powers to disburse the salaries to the teachers. Now, if the Hon'ble Court permits the administrators to preparethe seniority lists, then the appointments shall be made by theadministrators along with the Correspondents/Managers. Therefore, the Administrators pray that this Hon'ble Courtmay be pleased to accept the Memo filed by the Administratorsand thus render justice. Dated at Chennai this the7th day of August, 2005.Sd/-xxxx(Rev.A.THANGARAJ) Administrator.24. Concededly, even though this Court by order dated 22.12.2004 heldthat the IELC Apex Body and three Synods have become defunct and directedthe interim Administrators to regulate the continuity of registration ofthe IELC Apex Body and three Synods, viz., Ambur, Trivandrum and NagercoilSynods by registering the Constitution and the Bye-laws with the Registrar of Societies in consonance with the provisions of Tamil NaduSocieties Registration Act on or before 31.1.2005, which order has beenconfirmed by the Supreme Court by order dated 11.2.2005, till date noconcrete steps have been taken by the Interim Administrators to registerthe same under the Tamil Nadu Societies Registration Act.

According tothe Administrator, the application for registration has been sent to the Inspector General of Registration on 18.7.2005 and the same is pending.25. As already observed by us, there are about 101 educationalinstitutions, such as primary schools, elementary schools, middle schools, high schools and higher secondary schools, three hospitals with twonursing institutions and vast landed properties of an extent of 440 acrescarrying on many social, religious and charitable activities havingtransactions with the aid of State and Central Government funds andforeign donations. 26. It is obvious that even though Interim Administrators have beenappointed, there is no much progress even in regulating the registrationof the IELC Apex Body as well as three Synods under the provisions of Societies Registration Act. It is also seen that the administration of https://hcservices.ecourts.gov.in/hcservices/ educational institutions as well as hospitals is getting deteriorated forwant of proper administration.

The functioning of the educationalinstitutions and hospitals has to be regulated. Similarly, the salary andother service conditions of teaching staff, non-teaching staff, doctorsand other staff members of the institutions and hospitals are to beregulated and effectively monitored.27. That apart, it is also brought to our notice that taking advantageof the fact that the IELC Apex Body and three Synods have become defunctsocieties, third parties have usurped into their properties and tried totake control over the educational and medical institutions for theirpersonal gain in illegal manner. Since the properties of Churches and theeducational as well as medical institutions, whether under the control ofthe IELC Apex Body or three Synods, absolutely belong to the defunctsocieties, nobody can have control over the same in any manner, even underthe pretext of registration of the new societies, as such registration isnothing but a nullity in the eye of law.

Assuming that any thirty partyhas made illegal attempts to exploit the situation and take over thecontrol of the properties and educational as well as medical institutions, they are liable to be punished in accordance with law. Therefore, it isinevitable to give an appropriate and firm direction in this regard, asotherwise the social, religious and charitable activities of the defunctsocieties meant for needy and innocent public would get defeated onaccount of illegal attempts of third parties. In such circumstances, inorder to regulate the entire registration activities expeditiously andalso to bring the properties and affairs and management of the churchesas well as educational and medical institutions within the jurisdiction ofrespective Synods and the IELC Apex Body under effective control in ourconsidered opinion, it is inevitable to appoint an independentAdministrator as hereunder. (i) As unanimously agreed by the counsel appearing for allthe parties, we appoint Mr.Justice J.Kanakaraj, a retired Judgeof this Court, who also incidentally happens to be a believer in Church activities, as Chief Administrator to have an effectivecontrol in the matter of administration of educationalinstitutions as well as hospitals and properties belonging tothe IELC Apex Body and three Synods.

(ii) We also appoint Mr.M.S.Palaniswamy, Advocate as Associate Administrator who shall associate the ChiefAdministrator in the matter of registration of Societies as wellas other administrative and management activities referred toabove. (iii) The Interim Administrators already appointed for theIELC Apex Body and three Synods by order dated 22.12.2004 shallhenceforth act as Advisors and they shall extend their full co-operation to the Chief Administrator and the Associate https://hcservices.ecourts.gov.in/hcservices/ Administrator. (iv) All financial transactions pertaining to theeducational and medical institutions, including the settlementof terminal benefits to retired teachers and other staff, by the Correspondents/Managers shall henceforth be countersigned by the Associate Administrator, with the prior approval of the ChiefAdministrator. In such matters, the Associate Administrator isat liberty to take the advice of the Advisors, if necessary.

(v) The Registration of Societies shall be completed withinsix months from the date of receipt of copy of the order. (vi) After registration of Societies, the AssociateAdministrator with the approval of the Chief Administrator shallfinalise the list of eligible members of the Societies andsubmit before this Court a proposal and schedule for conductingelection afresh for the IELC Apex Body and three Synods. (vii) The entire properties, both movable and immovable, either belong to educational institutions or medicalinstitutions specifically that of the schools, hospitals or anyother charitable institutions of the defunct societies shallcontinue to remain with the defunct societies. (viii) The Chief Administrator and the AssociateAdministrators shall henceforth administer the same directly, notwithstanding the illegal constitution of societies by somethird parties with a view to usurp the properties of defunctsocieties, which is opposed to the provisions of the SocietiesRegistration Act.

(xi) The Chief Administrator and the Associate Administratorshall take effective steps to cancel the registration of suchillegal societies formed with mala fide intention to usurp theproperties of the defunct societies and to take criminal actionand also for damages against the persons concerned in the mannerknown to law. (x) In such case, the statutory authorities, police and the Courts concerned shall expeditiously investigate and dispose ofthe matter, of course, after hearing the parties concerned, inany event, within a period of six months from the date of suchcomplaint, in order to prevent any further damage to theproperties of the defunct societies. (xi) The existing vacancies which arose or will arise due tothe retirement of teachers in educational institutions as wellas staff members in other establishments shall be filled up by https://hcservices.ecourts.gov.in/hcservices/ appointing qualified persons by the Associate Administrator inconsultation with the respective Correspondents/Managers of theinstitutions concerned, of course, with the prior approval ofthe Chief Administrator and also on the advice of Advisors, ifnecessary, giving preference to the members of respectivecongregations in such appointments.

It is made clear that suchappointments shall be subject to the confirmation of this Court. (xii) With regard to the administration of medicalinstitutions, hospitals and nursing schools, the ChiefAdministrator and the Associate Administrator, of course, withthe advice of Advisors concerned, if necessary, are at libertyto take appropriate decision to streamline the entireadministration and management of medical institutions, hospitalsas well as nursing schools. (xiii) The statutory authorities are directed to extend fullco-operation to the Chief Administrator as well as AssociateAdministrator in all activities to safeguard the interests ofthe institutions as well as properties. (xiv) For secretarial assistance, it is open to the ChiefAdministrator as well as Associate Administrator to appoint an Officer of their choice for a monthly salary of Rs.10,000/-apart from travelling and other admissible expenses, if any.

(xv) A sum of Rs.50,000/- per month is fixed as honorariumfor the Chief Administrator and a sum of Rs.40,000/- per monthis fixed as honorarium for the Associate Administrator, apartfrom travelling and other admissible expenses, if any. Post the matter after six months for filing interim report of theprogress in the matter. Sd/-Asst. Registrar./true copy/Sub Asst. Registrar.na. Copy to:1. Mr.Justice J.Kanakaraj, Judge (retd.), High Court, Madras, No.7(3), Justice Ramanujam Road, Malaviya Avenue, Chennai-41.2. Mr.M.S.Palaniswamy, Advocate https://hcservices.ecourts.gov.in/hcservices/ 455, Additional New Law Chambers, High Court Buildings, High Court, Madras 600 104.3. The Inspector General of Registration, Chennai.4. The District Registrar, Vellore.5. The Inspector General of Police, North Zone for taking necessary action.6. The Chief Educational Officer, Vellore. 7. The Director of School Education, D.P.I.Campus, College Road, Chennai-600 0068.The Director of Elementary Education, D.P.I.Campus, College Road, Chennai-600 006.9.

The Sub Assistant Registrar, Original Side, High Court, Madras.10. The Section Officer, Judicial Department, High Court, Madras. (For posting after 6 months)+ 1 CC to Mr. Hema Sampath, Advocate SR NO 34666+ 1 CC to Mr. M. Satyanarayanan, Advocate SR NO 34678O.S.A.Nos.265 to 272 of 200317.8.2005mdr(co)gp, kaa/9.9.