CENTURY CLUB Vs. DISTRICT REGISTRAR OF SOCIETIES

JUDGEMENT

(1.) Mr.B.K.Sampath Kumar, Learned counsel for the petitioner.

(2.) The petitioner viz., Century Club is a Society registered under the provisions of Karnataka Societies Registration Act, 1960 (hereinafter referred to as 'the Act' for short). The petitioner had several illustrious individuals and persons of eminence as its past Presidents. The respondent Nos.2 to 5 are the members of the petitioner and were part of the executive committee of the petitioner for the term 2017-18. The respondent No.2 as the President, respondent No.3 was the Honorary Secretary, whereas respondent No.4 was the Treasurer and respondent No.5 was a Executive Member. The term of the Executive Committee comprising respondent Nos.2 to 5 came to an end on 30.06.2019 and former Vice President viz., one M.S.Giridhar was elected as President for the term 2018- 19. The affairs of the petitioner are governed by the Rules and Regulations.

(3.) On 14.06.2018, some members of the petitioner moved the resolution under Rule 23.2.4 of the Rules of the Club (hereinafter referred to as 'the Rules' for short) stating that the Resolution should be discussed in the Annual General Meeting to be held on 30.06.2018. The aforesaid resolution was considered in the Annual General Meeting of the club held on 30.06.2018 and 3 Member Committee consisting of Chartered Accountants were appointed to look into the irregularities in the accounts of the Club and to re-audit the accounts of the Club for the year 2018-19. The aforesaid Committee submitted a report on 07.01.2019. It is pleaded in the petition that on 15.01.2019, a notice for a Special General Meeting, which was scheduled to be held on 09.02.2019 was issued in order to deliberate upon the findings of the special audit committee reports. It is also averred that General Body in its special meeting as per powers conferred by it under Rule 20 of the Rules constituted an Enquiry Committee to look into the irregularities raised in the Special Audit Report. It is also pleaded that the respondent Nos.2 to 5 failed to appear before the special meeting and filed a complaint on 15.02.2019 before the District Registrar. It is also stated that the petitioner on 18.02.2019 issued a notice to respondent Nos.2 to 5 to appear before the Enquiry Committee, however, instead of appearing before the Enquiry Committee, respondent Nos.2 to 5 filed a civil suit viz., O.S.No.1572/2019, in which an interim injunction was also sought restraining the petitioner from proceeding with the enquiry.