RAKESH SARAF Vs. CHELMSFORD CLUB LIMITED

JUDGEMENT

(1.) THE three plaintiffs namely Sh. Rakesh Saraf, Sh. Harjeet Singh Kakkar and Sh. R.K. Narang (hereinafter to be referred as "third set of members") have filed the present suit for declaration mandatory and permanent injunction against the defendant i.e. Chelmsford Club Limited inter alia to pass a decree of declaration that Clause 39 (c) to 39 (j) of the Memorandum and Articles of Association of the defendant- club along with Article 46 (v) are null and void and contrary to the mandate of the Companies Act, 1956 and, therefore, are liable to be declared ultra vires the companies Act, 1956 and the elections to the post of President and members of the Managing Committee of the defendant club are liable to be held by a secret ballot/voting machine for conducting fair and transparent elections by appointing an independent Chairman assisted by two or more persons and further to restrain the defendant from holding the elections/AGM of the defendant club on the basis of ballot papers to be issued through postal certificate.

(2.) ALONG with the suit, the plaintiffs have also filed the application being I.A. No. 11428/2011 under Order 39 Rules 1 and 2 seeking interim order inter alia restraining the defendant club, their office bearers, representatives etc. from in any manner, holding the elections/AGM of the defendant club on the basis of ballot papers to be issued through postal certificate and restrain them to verify/certify the balance sheet of the defendant club for the year ending 31.03.2011.

(3.) THE other set of members Joginder Singh Kohli and Others (hereinafter to be referred as "second set of members") filed a fresh suit in the month of February, 2011 before this court being CS(OS) 397/2011 who had inter alia challenged the Circular dated 01.02.2011 issued by the club prescribing the procedure for election to the Managing Committee of the Chelmsford Club. THE said suit and interim application were disposed of in view of the statement made by the counsel appearing on behalf of the club. THE relevant extract of the orders are reproduced below: