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Smart Summary

Factual and Procedural Background

The petitioner challenged an order dated 24th July 1990 passed by the Assistant Registrar, Firms Societies and Chits, Varanasi under Section 4 of the Societies Registration Act. The controversy concerned whether the dispute should be adjudicated by the authority under Section 4 or by the Prescribed Authority under Section 25 of the Act.

The last elections of the society were held on 27th November 1986, resulting in a duly constituted executive body with Sri Shamsuddin as Secretary and Mohammad Hasan as President. The term of this executive body was three years, extendable by up to one year at a special meeting as per Rule 8(h) of the society’s bye-laws.

A group of society members purportedly held fresh elections on 7th January 1990, electing Mohammad Hasan as Secretary and Mohammad Israil as President, and submitted this new executive body list to the Assistant Registrar under Section 4.

Conversely, respondent No. 2 submitted a list of the executive body based on a Board of Trustees meeting held on 3rd September 1989, which extended the tenure of the existing governing council for one year, with the same office bearers continuing, including respondent No. 2 as Secretary. This list was also submitted under Section 4.

The Assistant Registrar, after hearing both rival claimants and considering the evidence, held that the extension of the existing executive body’s term under Rule 8(h) was valid and that the meeting on 3rd September 1989 was lawful. The fresh elections of 7th January 1990 were held invalid due to lack of proper notice and procedural irregularities.

Legal Issues Presented

  1. Whether the dispute over the validity of the executive body’s continuation and fresh elections falls within the jurisdiction of the authority under Section 4 of the Societies Registration Act or under the Prescribed Authority under Section 25 of the Act.
  2. Whether the Assistant Registrar had jurisdiction to decide the dispute regarding rival executive bodies under Section 4(1) proviso or if the matter should be referred to the Prescribed Authority under Section 25(1).

Arguments of the Parties

Petitioner’s Arguments

  • The dispute is not covered by Section 4 of the Act but relates to election matters under Section 25.
  • The controversy is about the continuance of office bearers and rival elections, which must be adjudicated by the Prescribed Authority under Section 25.
  • The petitioner disputed the executive body list submitted by respondent No. 2 and claimed legitimacy for the newly elected executive body based on fresh elections.

Respondents’ Arguments

The opinion does not contain a detailed account of the respondents’ legal arguments beyond their submission of the extended executive body list and claim of validity of the 3rd September 1989 meeting.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
All India Council v. Assistant Registrar, Firms Societies and Chits, AIR 1988 Allahabad 236 Clarification on jurisdiction regarding disputes under Sections 4 and 25 of the Societies Registration Act The court relied on this precedent to affirm that disputes concerning election or continuance in office of society office bearers fall within the exclusive jurisdiction of the Prescribed Authority under Section 25, not under Section 4.

Court's Reasoning and Analysis

The court analyzed the nature of the dispute, which involved rival claims to the executive body of the society—one based on an extension of the existing body’s term under Rule 8(h) and another based on fresh elections. It noted that Section 25 of the Societies Registration Act, as amended, provides a comprehensive and exclusive mechanism for adjudicating disputes related to elections and continuance in office of society office bearers.

The court found that the Assistant Registrar’s jurisdiction under Section 4(1) proviso is limited to objections against the annual list of managing body members and does not extend to resolving rival claims to executive authority. The proviso to Section 4(1) cannot override the specific and exclusive provisions of Section 25(1), which create a designated forum for such disputes.

Accordingly, the court held that the Assistant Registrar lacked jurisdiction to decide the dispute under Section 4 and that the matter should be referred to the Prescribed Authority under Section 25(1) for proper adjudication.

Holding and Implications

The court’s final decision was to allow the petition and quash the impugned order dated 23rd July 1990 passed by the Assistant Registrar, Firms Societies and Chits.

Holding: The Assistant Registrar had no jurisdiction under Section 4(1) proviso to decide the dispute over rival executive bodies; such disputes fall exclusively within the jurisdiction of the Prescribed Authority under Section 25(1) of the Societies Registration Act.

Implications: The decision directs that the dispute must be referred to the Prescribed Authority for adjudication under Section 25(1). This ruling clarifies the limits of the Assistant Registrar’s powers under Section 4 and reinforces the exclusive jurisdiction of the Prescribed Authority over election disputes in societies. No new precedent beyond this clarification was established by the court.

    Muslim Welfare Society, Machhlishahr And Another v. Assistant Registrar, Firms, Societies And Chits, Varanasi And Another

    1. The petitioner is aggrieved by an order dated 24th July, 1990 passed by the Assistant Registrar, Firms Societies and Chits, Varanasi under Section 4 of the Societies Registration Act, herein after referred to as the Act. The controversy involved in the present case is as to whether the dispute is such which is to be adjudicated by the authority provided under Section 4 or by the Prescribed Authority under S. 25 of the Act.

    2. It is not disputed that the last elections were held on 27th Nov. 1986 and a duly constituted executive body of the Society came into existence, of which Sri Shamsuddin was elected as Secretary and Mohammad Hasan as President. The term of the executive body in accordance with Rule 8(h) of the bye laws of the society is three years and in special case it was liable to be extended for a period not exceeding one year, at a special meeting. It appears, that a set of members of the society conducted fresh election to elect the executive body and claimed to have elected Mohammad Hasan as Secretary and Mohammad Israil as the President on 7th January, 1990. A list of the members of the executive body was submitted to the Assistant Registrar, firms societies and chits, as required under the provisions of Section 4 of the Act.

    3. On the other hand the respondent No. 2 submitted a list of executive body of the society on the basis of meeting held on 3rd Sept. 1989 of the Board of trustees, in which tenure of the governing council was extended for one year. The list of the members of the executive body contained the same names of office bearers which were earlier functioning and of which the respondent No. 2 was the Secretary. The papers of the meeting and the list of the members of the executive body was also submitted to the Assistant Registrar, Firms Societies and Chits, under Section 4 of the Act.

    4. Thus before the Assistant Registrar there was claim laid down by the two elected executive body in respect of one society. The Assistant Registrar in exercise of the powers under Section 4 of the Act gave opportunity to both the rival claimants and after necessary material was brought on record the Assistant Registrar held that the existing executive body in accordance with Rule 8(h) of the bye laws has validly extended the term of the executive body and they are liable to be given recognition and the proceedings conducted in the meeting held on 3rd Sept. 1989 are in accordance with the law. In respect of the elections of the rival body held on 9th January, 1990 it was held that the meeting of the general body was required to be called by the Secretary who admittedly, did not issue any notice for the meeting which is alleged to have been held on 7th January, 1990 and as such the meeting can not be treated to be in accordance with law. The proceedings of the meeting held on 7th January, 1990 indicate that two meetings were held and in one meeting some old office bearers were removed and thereafter in the other meeting the election of the governing council took place which is not in accordance with law.

    5. Learned counsel for the petitioner assailed the aforesaid order mainly on the ground that the present controversy is not covered by the provisions of Section 4 of the Act and it is mainly a dispute in respect of the election covered by the provisions of S. 25 of the Act which is to be adjudicated by the Prescribed Authority. In this case the dispute has not arisen in the context of the submission of the annual list of the managing body, which is required to be filed under Section 4(i) of the Act but the continuance of the office bearers of the society on the basis of the meeting held on 3rd August, 1989, according to the requirement of Rule 8(h) of the bye-laws and the rival elected body which they claimed to have been elected on the basis of elections held on 7th January, 1990. The petitioner has disputed not only the list of members of the executive body submitted by respondent No. 2 but has made his rival claim on the basis of newly elected executive body and on the basis of fresh elections and thus it is mainly a dispute relating to the election of office bearers of the society and the same has to be decided only in the manner prescribed under Section 25(i) of the Act.

    6. In support of the aforesaid contention learned counsel for the petitioner placed reliance on All India Council v. Assistant Regristrar, Firms Societies and Chits reported in AIR 1988 Allahabad 236. In my opinion the dispute which required adjudication was as to whether the meeting held on 3rd August, 1989 extending the term of existing executive body for one year as contemplated under Rule 8(h) of the bye-laws of the Society is valid or the meeting held on 7th January, 1990 holding fresh elections of the executive body is valid.

    7. The provisions of S. 25 of the Act as is amended by the State Legislature provides comprehensive code and creates designated forum or the Tribunal for adjudication in a summary manner of all disputes or doubt in respect to the election or continuance in office of the office bearers of the society. It also provides grounds on which election of office bearers can be set aside.

    8. According to the claim laid by the respondents it had to be decided whether the existing office bearers of the society should be allowed to continue in office, a dispute which clearly fell within the ambit of S. 25 of the Act. Even if for argument sake it is accepted that the only thing which was required to be seen as to whether the meeting held on 3rd August 1989 was valid or not and as to whether the existing office bearers of the society are liable to continue in office or not would again be a dispute covered under S. 25 of the Act. In any view of the matter this cannot be considered by the Assistant Registrar in exercise of powers under S. 4 of the Act. It cannot be said that in this case only Registrar was required to decide the objections filed under the proviso to Section 4(1) of the Act against annual list of managing body which was submitted by respondent No. 2. The parties have brought the dispute claiming existence of two rival executive bodies of the society and in this view of the matter, in my opinion, proviso to S. 4 of the Act does not provide any procedure for deciding such dispute by the authorities contemplated under S. 4(1) of the Act, where as S. 25(1) of the Act specifically deals with such contingencies providing for effective adjudication by the prescribed authority. The provisions of S. 25(1) which are exclusively and specially provided for this purpose cannot be nullified by the provisions of S. 4(1) Proviso of the Act, the scope of which is very limited in deciding the objections of the dispute in which old office bearers do not counter sign the list.

    9. Thus in the present case the Assistant Registrar had no jurisdiction to decide the present dispute in exercise of powers under Section 4(1), Proviso of the Act. The petition succeeds and is allowed. The impugned order dated 23rd July 1990 passed by the Assistant Registrar, Firms Societies and Chits is quashed.

    10. It will however be open to him to refer the dispute for adjudication by the prescribed authority under S. 25(1) of the Societies Registration Act.

    11. Petition allowed.

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