Waiver of statutory threshold in oppression and mismanagement petitions sustained where prima facie continuing oppression was shown.

A waiver of the statutory threshold for filing an oppression and mismanagement petition may be sustained where the pleadings disclose a prima facie case of continuing and systemic oppression, together with exceptional circumstances showing that denial of waiver would frustrate the statutory remedy. The Tribunal found such prima facie allegations in disputes over membership termination and suspension, committee constitution, disciplinary proceedings, and alleged articles violations, and treated subsequent steps against the concerned member as reinforcing the need to preserve the subject matter. On that basis, it found no legal infirmity in the waiver order and declined interference.

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Issues: Whether the order granting waiver under the statutory threshold for filing a petition alleging oppression and mismanagement called for interference.

Analysis: The appeal challenged the grant of waiver on the ground that the petition was substantially personal in nature, that the requisite member strength was not met, and that no exceptional circumstances were shown. The Tribunal found that the company petition disclosed, on a prima facie basis, continuing and systemic oppression and mismanagement affecting the affairs of the club, including disputes concerning termination and suspension of membership, constitution of committees, disciplinary proceedings, and alleged violations of the articles. It also noted that subsequent events, including the alleged EOGM and continued steps against the concerned member, supported the need to preserve the subject matter and avoid rendering the statutory remedy illusory. The challenge to the waiver order did not establish any legal infirmity warranting interference.

Conclusion: The grant of waiver was upheld and the appeal failed.

Ratio Decidendi: A waiver under the statutory threshold for maintaining a petition under the oppression and mismanagement provisions may be sustained where the pleadings disclose a prima facie case of continuing oppression and mismanagement and exceptional circumstances showing that denial of waiver would cause irreparable prejudice and frustrate the statutory remedy.

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