Chairman liable for society's tax dues under bye-laws

The court dismissed the writ petition, ruling that the trade tax dues from the assessment year when the petitioner was the society's Chairman can be recovered from him under the society's bye-laws. The judgment emphasizes the legal principles governing societies under the Societies Registration Act, highlighting the liability of office bearers and members for dues owed by the society.

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Issues: Recovery of sales tax dues from the petitioner as the Chairman of a society under the Societies Registration Act, 1860.

In this judgment, the primary issue revolves around the recovery of sales tax dues from the petitioner, who was the Chairman of a society registered under the Societies Registration Act. The petitioner had resigned in 2004, after which a new committee was elected, and the society's assets were sold in 2006. The Trade Tax Department initiated recovery against the petitioner as the Chairman during the relevant assessment year, leading to the writ petition.

The judgment delves into the legal framework provided by the Societies Registration Act, 1860. It explains that a society registered under the Act is a separate legal entity from its members, capable of suing and being sued in its own name. The Act vests the property of the society in its governing body, and members do not have proprietary interests in the society's assets. The judgment highlights the limitations on transferring immovable property without court approval and the liability of society members as per the bye-laws.

The judgment references legal precedents to establish the liability of society members for dues. It distinguishes cases where recovery can be pursued against the society's property first before targeting members. The judgment also cites a case where recovery was allowed from a society's Secretary due to his managerial control over the society's operations, emphasizing the individual liability of office bearers.

Ultimately, the court dismisses the writ petition, ruling that the trade tax dues from the assessment year when the petitioner was the society's President can be recovered from him under the society's bye-laws. The judgment underscores the legal principles governing societies under the Societies Registration Act and clarifies the liability of office bearers and members for dues owed by the society.

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