SWATI ULHAS KERKAR AND ORS. versus SANJAY WALAVALKAR AND ORS.
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A B C D E F G H 1170 SUPREME COURT REPORTS [2021] 3 S.C.R. SWATI ULHAS KERKAR AND ORS. v. SANJAY WALAVALKAR AND ORS. (Civil Appeal No. 412 of 2021) FEBRUARY 10, 2021 [A. M. KHANWILKAR AND S. RAVINDRA BHAT, JJ.] Societies – 22 persons (including appellants) were inducted on 17.09.17 as members of the Society by the Managing Committee, despite the pending requisition expressing no confidence against it – Decision set aside by Registrar – Upheld by High Court – Challenged by the Society, Chairman and Secretary – SLP was dismissed with the observation that if the 22 persons who were dis- membered assail the decision of the High Court, the issue can be considered on merits – Present appeal – Held: Decision of the then Managing Committee dtd.17.09.17, suffers from the vice of unseemly haste, and thus is colourable exercise of power and non-est in the eyes of law – It cannot be viewed differently for 5 appellants just because of prior date of application – This is precisely the effect of the decision of the Registrar in his operative order [paragraph (A)] as applicable to the appellants and similarly placed two other persons, who are not before Supreme Court – High Court rightly upheld that conclusion of the Registrar vide impugned judgment while dismissing the writ petition of the Society – Order passed by the Registrar (paragraph (A) of operative order) as affirmed by the High Court, clarified – Applications made by the appellants and similarly placed two other persons for grant of membership of the Society, are deemed to be pending and/or revived and be considered by the newly constituted Managing Committee on its own merits, keeping in mind the observations made in the present judgment – Societies Registration Act, 1860. Societies – Continuation of election process pending the present appeal – Challenge to – Held: Not maintainable at the instance of the appellants as their status is merely that of the applicants for grant of membership – Until they are admitted as members of the Society, they would have no right to participate in the election process. [2021] 3 S.C.R. 1170 1170 A B C D E F G H 1171 Partly allowing the appeal, the Court HELD: 1.1 According to respondent No. 1, the question whether the appellants have been legally and properly admitted as members or not is a lis between the existing members and the Managing Committee, to which the appellants herein are strangers and have no locus in that regard. This argument is tenuous and cannot be sustained. For, the real question posed at the instance of these appellants is whether they had a right to be considered for being admitted as members of the Society and further whether the order of the Registrar results in dismembering them despite they being validly admitted as members at the relevant point of time vide decision of the then Managing Committee dated 17.09.2017. Indeed, it is open to the existing members to object to any new person being admitted as member of the Society by the outgoing Managing Committee and that would be a lis between the existing members and the outgoing Managing Committee. That, however, does not denude the appellants of cause of action, who desired to be admitted as members of the Society being eligible in all respects, to be considered for such admission. Similarly, if a person has been dismembered by the Society including on account of direction issued by the competent authority, such a person will have independent remedy to assail that decision. In either case, therefore, being affected by such non-consideration or by virtue of dismembering, the aggrieved person would be competent to pursue remedy before the concerned forum for redressal of his grievance and for enforcement of his legal rights. The appellants were admitted by the then Managing Committee to be members of the Society, but they have been subsequently dismembered only because of the order passed by the Registrar having become final. Further, they were made party to the proceedings before the Registrar, who had set aside the decisions of the then Managing Committee, dated 17.09.2017. Thus understood, the objection regarding maintainability of challenge to the decision of the Registrar and of the High Court by such affected persons (appellants herein) cannot be countenanced. [Paras 37, 38][1192- G-H; 1193-A-E] SWATI ULHAS KERKAR AND ORS. v. SANJAY WALAVALKAR AND ORS. A B C D E F G H 1172 SUPREME COURT REPORTS [2021] 3 S.C.R. 1.2 It is true that the appellants did not file se
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