TaxTMI 
TaxTMI 
2008 (9) TMI 556
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.... the respondent-club and also to appoint a receiver to take charge of the affairs of the respondent-club and manage the same till the process of registration of the respondent is complete. As the aforesaid applications are connected with each other, all these applications are taken up for common disposal. The applicants/plaintiffs would contend that the respondent/defendant Madras Boat Club was established in the year 1867 with an object to promote and encourage the sport of rowing. Apart from encouraging the sport of rowing, the club is involved in other activities such as social, cultural, entertainment, recreation, etc. Taking advantage of the fact that the respondent-club was not registered and therefore, it is not accountable to ....
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....laim equal rights as rowing members, it is only the general body that has to decide such issues. The bye-laws is a contract between the members. The lawn members, having accepted to become a member as per the bye-laws, cannot now attempt to question the bye-laws. As there was lack of understanding between the committee members in the year 2006, the general body decided to put the past presidents to be in charge of the affairs of the dub and to set things right. They have co-opted five more members. The major complaint has been made only against the former captain M.R. Ravindran. The managing committee has taken steps and recovered amounts from the said M.R. Ravindran. The present managing committee called for an open house meeting of the me....
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....ndent-club, an injustice is being committed in the matter of enforcing voting rights of the lawn members. The entire management rests with the rowing members. Though annual election was contemplated, no election was conducted even by the managing committee which has now taken charge of the affairs of the respondent-club. As a decision was already taken, the respondent-club may be directed to straightway register the respondent-club under the Societies Registration Act. But, at any rate, they do not have any objection for registering the club under section 25 of the Companies Act. There is no necessity to convene a general body meeting to discuss about the registration of the respondent-club as such a decision was already taken in the extrao....
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....ion of mismanagement has been alleged only as against the past president and office bearers of the respondent-club. The present managing committee consisting of seven past presidents and co-opted members have taken charge of the affairs of the club only to set right the misdeeds alleged to have been committed by the past office bearers. When the activities of the club are carried on smoothly by the past presidents, appointing a receiver by the court to take charge of the affairs of the club does not arise for consideration. Learned senior counsel appearing for the applicants would submit that the respondent club is compulsorily registrable under section 3 of the Tamil Nadu Societies Registration Act. But, on the other hand, learned senio....
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....ion of the club in order to make the club more accountable and also to avoid mismanagement of its financial matters. The applicants as well as the respondent have agreed for registration of the dub either under the Societies Registration Act or under section 25 of the Companies Act. It is contended by learned senior counsel appearing for the appellants that no more resolution by an extraordinary general body is required inasmuch as a competent resolution had already been passed by the general body and the resolution is at the stage of execution. Whereas, learned senior counsel appearing for the respondent would contend that taking into account the interest of the club, the present managing committee thought it fit to generate an open ....
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....in exercising their voting rights and consequently in participating in the management of the respondent-dub, it is found that the lawn members, having accepted the provisions in the bye-laws which provided for differential treatment for the rowing members and the lawn members, entered into the dub. Further, it is found that the main object is only for promotion sports in the field of rowing. The recreation activity is found to be the latest development in the club. A Bench of this court in Chennai Kanchi Tiruvelore District Film Distributor Association v. Chinthamani S. Murugesan [2001] 3 CTC 349, has held that a voluntary association is entitled to carry on its affairs in accordance with its own rules. A person, becoming a member of suc....