Chellappa President v. The Secretary to Government
2003-07-15
P.D.DINAKARAN
body2003
DigiLaw.ai
Judgment :- The petitioner, President of The Tamil Nadu Stainless Steel Utensils Manufacturers Association, by his representations dated 4.7.2003 and 11.7.2003, made a complaint against the fourth respondent with respect to certain serious allegations relating to mismanagement and misappropriation of funds of the Association, which is registered under the Societies Registration Act and complaining that the General Body Meeting held on 24.4.2003, extraordinary meeting held on 12.6.2003 and 30.6.2003 are illegal, contrary to the bye laws of the Societies, requested the Registrar to enquire into the same. 2. In spite of such representations, the fourth respondent had convened another Executive Meeting of the Association on 14.7.2003 and also proposed to convene Executive Meetings on subsequent dates. Hence, the petitioner seeks a writ of Mandamus directing respondents 1 to 3 to forbear the 4th respondent from convening the executive Committee and general body meeting except by virtue of the by-laws of the Tamil Nadu Stainless Steel Utensils Manufacturers Association. 3. Mr.M.S. Palanisamy, learned Additional Government Pleader takes notice 4. Section 36 of the Tamil Nadu Societies Registration Act reads as follows. " Section 36: Power of Registrar to inquire into the affairs of registered society.- (1) The Registrar may, of his own motion or on the application of a majority of the members of the committee of a registered society or on the application of not less than one-third of the members of that registered society, or, if so moved by the District Collector hold or direct some person authorised by the Registrar by order in writing in this behalf to hold, an inquiry, into the constitution, working and financial condition of that registered society. (2) An application to the Registrar under sub-section (2) shall be supported by such evidence as the Registrar may require for the purpose of showing that the applicants have good reason for applying for an inquiry. (3) The Registrar may require the applicants under sub-section (1) to furnish such security as he thinks fit for the costs of the proposed inquiry, before the inquiry is held.
(3) The Registrar may require the applicants under sub-section (1) to furnish such security as he thinks fit for the costs of the proposed inquiry, before the inquiry is held. (4) All expenses of, and incidental or preliminary to, the inquiry shall, where such inquiry is held - (a) on application, be defrayed by the applicants therefor or out of the assets of the registered society or by the members or officers of the registered society, in such proportions as the Registrar may, by order in writing, direct; and (b) on the District Collector's or Registrars motion, be defrayed out of the assets of the registered society, and shall be recoverable as an arrear of land revenue. (5) An order made under sub-section (4) shall, on application, be enforced by any Civil Court having local jurisdiction in the same manner as a decree of such court. (6) A person holding an inquiry under this section shall at all reasonable times have free access to all the books, accounts and documents of the registered society and the officers of society to produce such books, accounts and documents and furnish such statements and other information in relation to its business as he may direct. (7) It shall be the duty of all persons who are or have been officers of the registered society to furnish the inquiring officer with all the books, accounts and documents in their custody or power relating to the registered society. (8) A person holding an inquiry under this section may summon any person who, he has reason to believe, has knowledge of any of the affairs of the registered society and may examine such person on oath and may summon any person to produce any books, accounts or documents belonging to him or in his custody if the person holding the inquiry has reason to believe that such books, accounts or documents contain any entries relating to transactions of the registered society. (9) The result of the inquiry shall be communicated to the registered society and to the applicants, if any, and if the Registrar is satisfied that the result of the inquiry does not warrant action under section 37, he may issue such direction to the registered society, as the Registrar may deem fit." 5.
(9) The result of the inquiry shall be communicated to the registered society and to the applicants, if any, and if the Registrar is satisfied that the result of the inquiry does not warrant action under section 37, he may issue such direction to the registered society, as the Registrar may deem fit." 5. A reading of the above Section makes it clear that the Registrar is empowered to inquire into the affairs of the registered Society either on its own motion or on an application by a majority of the members of the Committee or on an application of not less than one third of the members of the society or under any other circumstances mentioned under Section 36(1) of the Act. In the inquiry, if the Registrar satisfied that the society had contravened any one of the provisions of the Act or had become insolvent or business of the society is conducted fraudulently or not in accordance with the bye-laws or the objects of the same, the Registrar is empowered even to cancel the registration, of course, after giving an opportunity to the registered society, as provided under Section 37 of the Act. 6. If that be so, suffice it to direct the third respondent, who is the competent authority, to enquire into the representations of the petitioner, including the validity of the general body meeting held on 24.4.2003 and the extraordinary Executive Committee meeting held on 12.6.2003, 30.6.2003 and 14.7.2003 and pass appropriate orders on merits, of course, after hearing the petitioner as well as the fourth respondent herein, within eight weeks from the date of receipt of a copy of this order. The writ petition is disposed of accordingly. No costs. WPMP No.24287 of 2003 is closed.