TaxTMI 
TaxTMI 
TaxTMI 
1999 (7) TMI 719
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....tration Rules, 1961. It has been running different educational institutions at different places of Chitradurga District and Davanagere District. Some of the educational institutions are aided and some educational instutions are unaided. However, all the educational institutions which are being run by the petitioner Association are recognised by the Karnataka State Government. In addition to the educational institutions, it is also running a SC/ST Hostel at Honnur, Davanagere Taluk and District. It is stated that eversince it came into existence from 1981, it has been functioning effectively and properly to achieve the objects, for which it has been established solely with a view to impart education to the students belonging to the rural area. 3. It is contended that the executive Committee of the Society was elected on 14.8.1997 and the said committee submitted returns to the District Registrar of the Societies-the second respondent herein along with the audited accounts with prescribed fee as required under the rules. The acknowledgement for having submitted such returns is produced at Annexure-A. The list of executive Committee members who were elected on 14.8.1997 is produced a....
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....laint required to be submitted under the above said provision or initiating the proceedings by him sue-moto. Admittedly, the proceedings, were not initiated by the second respondent suo-moto, but at the instance of the fifth respondent on his complaint. Therefore, the second respondent should not have submitted his report as the mandatory requirement under Section 25 of the Act has not been complied with. The report submitted by the second respondent is not in conformity with Section 25. Therefore, the first respondent should not have accepted the said report and passed the order at Annexure-K in exercise of its power under Section 27-A of the Act. 6. The further ground of attack of the impugned order is that the second respondent at the time of submitting his report, has failed to take into consideration of the newly elected committee as per the rules and the Bye-laws of the Association on 14.8.1997 and required audit report along with list of executive Committee members was submitted to the second respondent which was acknowledged by him and accepted by him. Therefore, it is contended by the learned counsel for the petitioner that the report submitted by him to the second respon....
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....s before the second respondent. The show cause notice vide Annexure-H was accepted by him. After the impugned order Annexure-K was passed, appointing the fourth respondent as the Administrator and assuming charge vide Annexure R-13A, the present petition is filed. Therefore, the petition has become infructuous and not maintainable in law. The same is liable to be rejected. In support of the justification of the order at paragraph 11 of the application, this respondent has further contended that number of affidavits of the members and the executive committee members of the association are produced to show that there was no general body meeting and the election was held on 14.8.1997 vide R1 to R12 and further he has contended that the executive Committee members who are elected in the year 1994 have been continuing in the office even today. The list of members is given at Annexure-R13 to R23. This respondent was the President of the said association from the day it was established till the impugned order is passed. Therefore, the learned counsel appearing on behalf of the fifth respondent Sri V. Narayanaswamy submits that the order is perfectly legal and valid and it need not be inte....
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....of the petitioner-Society, in the larger interest of the students who are studying in the various institutions which are being run by it. Therefore, the learned Government counsel appearing on behalf of the respondents 1 to 4 submits that the order need not be interfered with by this Court in exercise of its extraordinary jurisdiction. 9. Having heard the learned counsel at length on behalf of the parties, the following points that would arise for consideration of this Court: Points 1) Whether the complaint dated 14.11.1997 submitted by the fifth respondent along with him five members claiming to be the Executive Committee members to the Petitioner's Association is valid one as required under Section 25 of the Act for the purpose of conducting an enquiry by the second respondent District Registrar of Societies with regard to the constitution, working and financial condition of the society to enable him to submit a report to the first respondent to exercise its power under Section 27A(1) Clause (C) of the Karnataka Societies Registration Act, 1960? 2) Whether the report submitted to the first respondent by the second respondent in pursuant to the directions given by ....
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....overnment considers fit as necessary in the public interest and may appoint the Administrator to the Society to look after the affairs and management of the same not withstanding anything contained in the Act. By writing the said letter to the 2nd Respondent by the 3rd Respondent calling upon him to submit report on the complaint of the 5th Respondent referred to above, in pursuant to the said letter referred to above to submit report by the 2nd Respondent, he was required to conduct an enquiry by following the procedure as contemplated under Section 25 of the Act read with Rule 8 of the Rules and thereafter the first Respondent could have exercised its power under Section 27A(1) and (c) of the Act to pass an order of superceding the Executive Committee of the Association and appointing the 4th Respondent as its Administrator to look after the management and the affairs of the Society. The power under Section 27A(1) & (c) of the Act can be exercised either by calling for the report from the 2nd Respondent or the phrase used "otherwise "in the clause (c) of the above said section referable to conduct an enquiry by the first Respondent itself on the complaint received by it against t....
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....of sub-section (1) of Section 27A of the Act shall be referrable to the procedure required to be followed by the first Respondent on the complaint that would be received by it and satisfied itself with regard to allegation made against the Executive Committee members of the Society. After affording opportunity to all the concerned including the committee members of the Society. Therefore by interpreting the said clause, phrase referred to the report from the Registrar means to state that he has to submit report after following the procedure contemplated under Section 25 of the Act. In the instant case, the question of considering the phrase otherwise" occurred under clause (c) of the aforesaid section need not be referred to and consider in this case as the third Respondent has directed the 2nd Respondent to submit his report. Since the 3rd Respondent directed the 2nd Respondent to submit a report on the complaint referred to above, he has to submit his report only after following the procedure as required under Sec. 25 of the Act. In this regard, this Court has to examine as to whether the 2nd respondent has examined the complaint in conformity with the provisions of the said sect....
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.... affording opportunity to the petitioner and its Executive Committee members. Therefore, the submission made on behalf of the contesting respondents 1 to 3, and 5 is devoid of merit and the same cannot be accepted. Hence, the submission in that regard is rejected and the said point is answered against them. 12. In view of the findings recorded by this Court on the points 1 & 2 against the contesting respondents and in favour of the Association, this Court has to record a finding whether the impugned order passed by the first Respondent is in conformity with Section 27A (1) (c) of the Act. As already stated supra, the report submitted by the 2nd Respondent on the complaint of the 5th Respondent is not legal and valid as he has not followed the procedure contemplated under the provisions of the Act. The first Respondent before exercise of his 2 power under Section 27A(1) (c) Independently, he has not applied his mind, but he had simply accepted the report of the 2nd respondent, without examining as to whether the said report was submitted by the 2nd Respondent after following the mandatory procedure contemplated under the provisions of the Act and the Rules referred to above. Undisp....
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.... by the 4th Respondent to the Executive committee members is also liable to be quashed. 15. Further, it was brought to the notice of this Court by the learned counsel appearing on behalf of the parties that though the Election was conducted by the 4th Respondent to elect the Executive Committee members of the Association results were declared and elected members have not taken charge of the office of the Association and the 4th Respondent has been continued as an Administrator. In this view of the matter, having regard to the facts and circumstances of this case, the impugned orders are liable to be quashed and the election conducted in pursuant to the impugned order at Annexure-N is also liable to be quashed and this Court while granting the interim order dated 11.5.1999 stated that election which was held by the 4th Respondent pursuant to the impugned notification at Annexure-'N' is subject to the result of this petition and the impugned orders are liable to be quashed for the reasons stated supra. The appropriate directions are issued to the petitioner- Association and to the 2nd Respondent in the operative portion of the order. 16. The submissions made by the learned ....