Holding

Sections 23 and 25 of the Societies Registration Act, 1860 do not bar a civil suit for rendition of accounts or for challenging election of office‑bearers unless the specific conditions of Section 25 are satisfied, so the suit is maintainable in the civil court.

Summary

The Nagri Praccharini Sabha, a society registered under the Societies Registration Act, 1860, was sued by five of its members in a civil court challenging the election of its managing committee and seeking rendition of its accounts. The society contended that Sections 23 and 25 of the Act barred the suit. The Supreme Court held that a litigant with a civil grievance has a right to sue in civil court unless jurisdiction is expressly or impliedly excluded, and that Section 23 deals only with audit orders while Section 25 applies only to election disputes that meet specific statutory pre‑conditions. Since the members did not satisfy those pre‑conditions, the suit was not barred. Consequently, the appeal was dismissed and the civil suit was deemed maintainable.

Issues considered

Whether a civil suit challenging the election of office‑bearers and seeking rendition of accounts of a society is barred by Section 23 of the Societies Registration Act, 1860.
Whether Section 25 of the Societies Registration Act, 1860 bars such a suit unless its statutory conditions are fulfilled.
Whether the civil court's jurisdiction is excluded by the Act, making the suit non‑maintainable under the Code of Civil Procedure.

Legislation cited

Code of Civil Procedure, 1908s. 9
Societies Registration Act, 1860s. 23, s. 25

Subjects

civil jurisdictionsocieties registration actelection disputerendition of accountsstatutory barcivil suitmembers' rights

Judgment

NAGRI PRACHARINI SABHA AND ANR.
A
v.
, ·VTH ADDL. DISTT. AND SESSIONS JUDGE, VARANASI
) AND ORS.

AUGUST 22, 1990
B
[RANGANATH MISRA, M.M. PUNCHHI AND
K. RAMASWAMY, JJ.)

1 - · ·' Societies Registration Act. 1860 (Act No. 2 I of 1860 as applicable
to rUttar Pradesh): Sections 23 and 25. Society-Members-Suit chal-
lenging office bearers' election and for rendition of accounts-Juris-
diction of Civil Court-Whether barred. c
Code of Civil Procedure, 1908: Section 9-Civi/ Court-Bar of
jurisdiction.
'y

The respondents instituted a civil suit challenging the election of D
the office bearers' of the appellant-Society and asked for rendition of
accounts. The appellant-Society contested the suit on the ground that in
view of Sections 23 and 25 of the Societies Registration Act, 1860 the
suit was barred. The courts below having held that the suit was not
barred, the defendant Society filed appeal in this Court.
E
'7. Dismissing the appeal, this Court,

HELD: I. A litigant having a grievance of a civil nature has,
independently of any statute, a right to institute a suit in the civil court
unless its cognizance is either expressly or impliedly barred. The exclu-
"°'· sion of jurisdiction of the civil court is not to be readily inferred and F
such exclusion must be either express or implied. [973A-B]

\ K.S. Venkataraman & Company v. State of Madras, [1966) 2
S.C.R. 229; Ganga Bai v. Vijay Kumar and Ors., [1968) 3 S.C.R. 662;
Dhula Bhai and Ors. v. The State of Madhya Pradesh and Ors., [1974)
3 S.C.R. 882; referred. G

Raleigh Investment Company Limited v. The Governor General

'
in Council, ) 1947) L.R. 74 I.A. 50; cited.

2. The provisions of Section 23 of the Societies Registration Act,
1860 are confined to audit and have nothing to do with the relief of H
rendition of accounts. [9768]
971
972 SUPREME COURT REPORTS [1990] 3 S.C.R.

3. Section 25 deals with disputes regarding challenge to the evic-
A
tion of office-bearers. The maintainability of dispute within the purview. I
of that Section is hedged with conditions and unless such requirement is \..
fulfilled, a statutory dispute would not be maintainable. [9768]

3.1 In the instant case the action in the Civil Court is by some of
B the members who perhaps would not satisfy the requirement laid down
in Section 25. It cannot be said that Section 25 having provided the
pre-conditions on the satisfaction of which a dispute within the purview
of that Section would be maintainable before the Registrar takes away -
the right of Members of the Society to claim relief otherwise outside ·the
.
purview of Section 25 on the basis of their right to seek remedy for their
grievance. It is not the appellant's contention that the relief claimed is
c not one which would come within the ambit of Section 9 of the Code of
Civil Procedure. Therefore, the bar of Section 25 is not applicable to the
facts of the case, and the conclusion reached in the Courts below is
'<'
correct and the suit is maintainable. [976C-E]

D CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2483
of 1982.

From the Judgment and Order dated 5.2.1982 of the Allahabad
High Court in Civil Misc. Writ Petition No. 1744 of 1982.

E
Gobind Mukhoty and U.S. Prasad for the Appellants.

Ms. Rachna Gupta, Ms. Rani Chhabra and M.C. Dhingra for the
Respondents.

F The following Judgment of the Court was delivered by
'
Appellant is a Society registered under the Societies Registration I
Act, 21 of 1860. Five persons of whom some are respondents before us
instituted a suit in the Court of Civil Judge, Varanasi challenging
the election of the Managing Committee and other elected officers of
G the appellant and asked for rendition of accounts. This suit of 1981
is still pending. We are now concerned with the correctness of the
finding on the preliminary issue as to whether such a suit is main-
tainable in the Civil Court. The defendants' objection to the main- -
tainability is grounded upon the provisions contained in Sections 23
and 25 of the Registration Act. The Courts below have taken the view
H that the suit is not barred. That is why the defendants are here by
special leave.
NAGRI SABHA v. ADDL. DISTI. JUDGE 973

A litigant having a grievance of a civil nature has, independently
A
of any statute, a right to institute a suit in the civil court unless its
}-1iignizance is either expressly or impliedly barred. The position is
well-settled that exclusion of jurisdiction of the civil court is not to be
readily inferred and such exclusion must be either expressly or implied.

Reliance has been placed by Mr. Mukhoty before us on the ratio B
of the Constitution Bench decision of this Court in K. S. Venkataraman
& Company v. State of Madras, [1966] 2 S.C.R. 229 where reference
~ · -· -has been made to the Privy Council case in Raleigh Investment Com-
pany Limited v. The Governor General in Council. It has been laid
down that the Civil Court's jurisdiction would be presumed unless the
contrary is indicated. Mr. Mukhoty has also relied upon two other
decisions being Ganga Bai v. Vijay Kumar and Others, [1968] 3 S.C.R. c
662 and Dhula bhai and Others, v. The State of Madhya Pradesh and
Another, [1974] 3 S.C.R. 882. The legal position thus seems to be clear
Y and it is not necessary to quote further authorities.

What is really in dispute is the application of the rule to the facts D
of the case. To ascertain whether the suit would be barred. the effect
of the provisions of Sections 23 and 25 of the Registration Act with the
U .P. amendments has to be considered. These sections provide:

"23. Audit: (1) Without prejudice to the provisions of
sub-section (2) of Section 4 or of Section 22, where the E
Registrar is of opinion that it is necessary or expedient so to
do, he may, by written order, require any society to furnish
its accounts or a copy of a statement of receipts and expen-
diture for any particular year duly audited by a Chartered
Accountant:
F
Provided that the Registrar may, at the request of
( society permit it to have such accounts and statement
audited by any other person by him.

(2) If the society fails to furnish the documents referred to
in sub-section (1) within the period specified in the order or G
with such extended period as the Registrar may from time
to time allow, the Registrar may cause the accounts of such
society audited for the said year and may recover the cost
of such audit from that society.

(3) If the society neglects or refuses to make its account or H
974 SUPREME COURT REPORTS I 1990] 3 S.C.R.
other documents available for audit under sub-section (2)
A
or, in the opinion of the Registrar, otherwise fai'ls to pro-. 1
vide requisite facilities to have the audit made with due\
expedition, the Registrar may proceed to take action under
Section 24.

B 25. Disputes regarding election of office-bearers:-(1) The
prescribed authority may, on a reference made to it by the
Registrar or by at least one fourth of the members oi a
society registered in Uttar Pradesh, hear and decide in a ·-
summary manner any doubt or dispute in respect of the 1
election or continuance in office of an office-bearer of such
society, and may pass such orders in respect thereof as it
c deems fit: •

Provided that the election of an office bearer shall be
y
set aside where the prescribed authority is satisfied:-

D (a) that any corrupt practice has been committed by such
office bearer; or

(b) that the nomination of any candidate has been improp-
erly rejected; or

E (c) that the result of the election in so far as it concerns "'.'.'
such office-bearer has been materially affected by the im-
proper acceptance of any nomination or by the improper
• reception, refusal or rejection of any vote or the reception
of any vote which is void or by any non-compliance with the
provisions of any rules of the society.
-
,..
F
Explanationl.-A person shall be deemed to have committed a '
corrupt practice who directly or indirectly, by himself or by any other )
person-

(i) induces, or attempts to induce, by fraud, intentional misrepre-
G sentation, coercion or threat of injury, any elector to give or-to
refrain from giving a vote in favour of any candidate, or any
person to stand or not to stand as, or to withdraw or not to
withdraw from being a candidate at the election;
~
(ii) with a view to inducing any elector to give or to refrain from
H giving a vote in favour of any candidate, or to inducing any
NAGRI SABHA v. ADDL. DISTI. JUDGE 975

person to stand or not to stand as, or to withdraw or not to
withdraw from being, a candidate at the election, offers or gives A
) any money, or valuable consideration, or any place of employ-
ment, or holds out any promise of individual advantage or profit
to any person;

(iii) abets (within the meaning of the Indian Penal Code) the B
doing of any of the acts specified in clause (i) and (ii);

>· - (iv) induces or attempts to induce a candidate or elector to be-
,rll lieve that he, or any person in whom he is interested, will become
or will be rendered an object of divine displeasure or spiritual
censure;
c
(v) canvasses on grounds of caste, community, sect or religion;

(vi) commits such other practice as the Government may pre-
scribe to be a corrupt practice.
D
Explanation II-A 'promise of individual advantage or profit to a
person' includes a promise for the benefit of the person himself, or of
any one in which he is interested.

Explanation III-The State Government may prescribe the procedure
7 for hearing and decision of doubts or disputes in respect of such elec- E
!ions and make provision in respect of any other matter relating to
such elections for which insufficient provisions exists in this Act or in
the rules of the society.

(2) Where by an order made under sub-section (1), an election is
set aside or an office bearer is held no longer entitled to continue in F
office or where the Registrar is satisfied that any election of office
( bearers of a society has not been held within the time specified in the
rules of that society, he may call meeting of the general body of such
society for electing such office-bearer or office-bearers, and such
meeting shall be presided over and be conducted by the Registrar or by
any officer authorised by him in this behalf, and the provisions in the G
rules of the society relating to meetings and elections shall apply to
such meeting and election with necessary modifications.

4-- (3) Where a meeting is called by the Registrar under sub-section
(2), no other meeting shall be called for the purpose of election by any
other authority or any person claiming to be an office-bearer of the H
society.
976 SUPREME COURT REPORTS I 1990] 3 S.C.R.

A Explanation-For the purposes of this section, the expression 'pre-
scribed authority' means an officer or court authorised in this behalf by
the State Government by notification published in the Official - \
Gazette.

We are of the view that provisions of Section 23 are confined to audit
B and have nothing to do with the relief of rendition of accounts. No
more is necessary to be said about that relief. Section 25 deals with
disputes regarding challenge to the eviction of office-bearers. The
maintainability of dispute within the purview of that Section is hedged
with conditions and unless such requirement is fulfilled, a statutory
dispute would not be maintainable. The present action in the Civil
c Court is by some of the members who perhaps would not satisfy the
requirements laid down in Section 25. It cannot be contended that
Section 25 having provided the pre-conditions on the satisfaction of
which a dispute within the purview of that Section would be maintain-
able before the Registrar takes away the right of Members of the
Society to claim relief otherwise outside the purview of Section 25 on
D the basis of their right to seek remedy for their grievance. It is not the
contention of Mr. Mukhoty that the relief claimed is not o·ne which
would come within the ambit of Section 9 of the Code of Civil Proce-
dure. That being so. we are of the view that the bar of Section 25 is not
applicable to the facts of the case. Therefore, the conclusion reached
in the Courts below is correct and the suit is .~aintainable.
E
We pointed out to Mr. Mukhoty that the relief against election of
office bearers must have become infructuous with the passage of time
as the election JS annual. It is for the trial Court now to dispose of the
suit taking into consideration the changes in the situations that may be
brought before it. We dismiss the appeal and direct the trial court to
F expedite the disposal of the suit. No costs.

T.N.A. Appeal dismissed. )