Civil : Education Society: Fresh Election by the Charity Commissioner directed

(A) Societies Registration Act, 1860, Section 15 – Bombay Public Trusts Act, 1950 – Society election – Convening of meeting by Working President – Doctrine of necessity Whether the Working President could have convened the election meeting for 08.09.2002 as according to the Objectors, it was only the Secretary or in the alternative the President who could have convened the meeting under the bye- laws? – President and Secretary who were authorized under the byelaws had died and no election had been held for replacing them – Even the Vice-President and the Joint-Secretary had also passed away and they had also not been replaced by any fresh elections – The only person who could be said to be managing the affairs of the Society was the Working President and in particular, when all the 16 surviving and valid members had made a request for convening a meeting, no fault could be found with the decision of the Working President to convene the meeting – The other option could have been that all the 16 members could have themselves nominated any one of the members to chair the meeting of the Executive Body and thereafter they could have proceeded to take appropriate decisions – Held that the convening of the meeting for holding the elections by Working President on 08.09.2002 cannot be faulted with. (Para20)

 

(B) Societies Registration Act, 1860, Section 15 – Society election – Convening of meeting by Working President – Whether the 7 Objectors were entitled to a notice for the meeting of 08.09.2002 in view of their disqualification under Section 15 of the Registration Act; Whether lack of notice to the said 7 Objectors would vitiate the entire election meeting of 08.09.2002? –Though, in the bye-laws of the present Society or the Rules of the Society, there is no such provision of automatic cessation of membership where a member goes in default of payment of membership fee for more than three months yet the effect of the proviso to Section 15 of the Registration Act which admittedly is applicable to the Society, the Objectors have to be treated as suspended members and therefore, would not be entitled to any notice as they had no right to vote or to be counted as members – Once they are not to be counted as members, there was no occasion to give them notice as such – Non-issuance of notice to the Objectors would not vitiate the proceeding of the special meeting held on 08.09.2002 – Held that a clear reading and interpretation of the proviso to Section 15 of the Registration Act would disentitle such defaulting members from being given any notice even if their membership was not terminated or ceased. (Para 26)

 

(C) Societies Registration Act, 1860, Section 15 – Society election – Convening of meeting by Working President – Whether invalid members had signed the requisition dated 20.08.2002 and had been elected to the Executive Committee? – Held that signatories at serial nos. 12 to 16 of the requisition dated 20.08.2002, had been duly admitted in the General Body Meeting on 11.11.2001 – The said resolution of the meeting was never challenged – The same is on record as Exhibit 131 and one of the Objectors ‘D’ was a signatory in the said proceeding – With respect to the objections relating to signatory nos. 4 to 7, the explanation is that were of the category of Employee Members – In due course they had retired from service – However, even after their retirement, they had continued to pay their subscription – As their membership(s) have continued, at this stage, objection(s) with regard to the validity thereof not being examined in detail, given the lack of clarity and absence of material facts on this aspect. (Para 27)

 

(D) Society election – Convening of meeting by Working President – Change report – Challenge as to – Locus standi – Whether the private respondents had the locus to be heard before any forum or to file an appeal/petition against the order of the Joint Charity Commissioner? – During the pendency of the appeal before the Joint Charity Commissioner all the seven objectors had died – The Joint Charity Commissioner decided in favour of the appellants and directed for accepting the Change Report – The contesting respondent preferred a petition before the District Judge – He was neither an objector before the Assistant Charity Commissioner nor a valid member of the Society – Held that he would have no locus to maintain the petition before the District Judge – Although the contesting respondent claimed himself to be the Vice-President of the Society but has not been able to substantiate his claim – On this ground alone the District Judge ought to have dismissed the petition – Impugned judgment of the High Court and the other authorities adverse to the appellants cannot be sustained and liable to be set aside – The Change Report No.668 of 2002 deserves to be accepted – The Joint Charity Commissioner had rightly accepted it.  (Para 28, 31 and 32)

SUPREME COURT OF INDIA

2024 STPL(Web) 51 SC

[2024 INSC 52]

Adv Babasaheb Wasade & Ors.  Vs. Manohar Gangadhar Muddeshwar & Ors.

Civil Appeal No. 10846 of 2018-Decided on 23-1-2024

https://stpllaw.in/wp-content/uploads/2024/04/2024-STPLWeb-51-SC.pdf

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Contract: Demurrage not allowed

Indian Contract Act, 1872 – Demurrage – Contractual Liability – Liquidated Damages – Breach of Contract – Adjudication of Claims – The petitioner, engaged in transportation business, participated in a competitive bidding process and was awarded a transportation contract by the Food Corporation of India (FCI). Dispute arose when FCI began deducting demurrage charges from petitioner’s bills for alleged delay in unloading wagons, despite petitioner not being responsible for wagon unloading.

The petitioner contested the deduction, arguing that as per the contract, demurrage cannot be unilaterally imposed by FCI unless liability is determined through due process of law.

The Court examined the relevant contract clause, which allowed FCI to recover costs, damages, etc., due to contractor’s negligence, but found it did not specifically authorize demurrage deduction.

Relying on the Supreme Court precedent in Food Corporation of India vs. Abhijit Paul, the Court held that demurrage could not be levied on the petitioner as the contract did not assign the task of wagon unloading to them.

The absence of a liquidated damages clause in the contract further supported the Court’s decision. The Court directed FCI to refund the deducted demurrage amount and refrain from further deductions, unless liability is determined through lawful adjudication.The order did not prevent FCI from seeking damages through proper legal channels. (Para 12, 15, 18, 22)

GAUHATI HIGH COURT

2023 STPL(Web) 184 Gauhati

[2024 STPL 1652 Gauhati]

Hi Speed Logistics Pvt Ltd. Vs. Food Corporation Of India And 5 Ors.

WP(C) 6317 of 2022-Decided on 8-11-2023

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Breach of peace: It must disturb public order, not just personal peace

Code of Criminal Procedure, 1973 – Sections 145, 146- Breach of peace – Emergency situation – Possession dispute – Civil litigation – Non-application of mind – Proceeding under Section 145 – Attachment under Section 146 – The application under Section 482 of the Code of Criminal Procedure, 1973 challenges the orders by the Executive Magistrate, concerning a dispute under Section 145 of the Code of Criminal Procedure, 1973 and subsequent attachment under Section 146(1) of the same.

The petitioner contests the legality of both orders, asserting that the initiation of the proceeding and the attachment were illegal and an abuse of process. It’s argued that the jurisdiction under Section 145 can only be invoked if there’s a likelihood of a breach of peace, which wasn’t sufficiently demonstrated in this case.

The petitioner highlights that the attachment order was passed ex-parte without affording them an opportunity to respond, which is contrary to the exceptional circumstances required for such an order. Reference is made to legal precedent discouraging parallel criminal proceedings when a civil litigation is pending regarding property possession, emphasizing the binding nature of civil court decrees.

The respondents counter by claiming entitlement to the land based on a partition deed and subsequent court judgments. They argue that emergency circumstances justified the attachment due to the petitioner’s attempt to construct on disputed land.

Legal precedents are cited to emphasize that the existence of an emergency, not just the use of the term “emergency,” warrants attachment under Section 146.

The judgment critically examines the orders and the circumstances leading to them. It observes discrepancies between the assertions made in the complaint and police report, highlighting the absence of clear grounds for apprehension of breach of peace.The judgment reiterates the requirement for a dispute likely to cause a breach of peace under Section 145, emphasizing that it must disturb public order, not just personal peace.

It concludes that the impugned orders suffer from non-application of mind and jurisdictional error, resulting in injustice to the petitioner. Consequently, both orders are quashed, and the petition is allowed. Important Paragraph Numbers of Judgment: (Para 13, 19, 30, 31)

GAUHATI HIGH COURT

2023 STPL(Web) 183 Gauhati

[2024 STPL 1651 Gauhati]

Md. Osman Ali Saikia And Anr. Vs. Chand Mahamod Saikia And 2 Ors.

Crl.Pet. 239 of 2021-Decided on 8-11-2023

https://stpllaw.in/wp-content/uploads/2024/05/2023-STPLWeb-183-Gauhati.pdf

 

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Electricity: Outstanding arrears from previous owner

Constitution of India, Article 226 – Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 – Electricity Act, 2003 – Section 43, 49, 50, 56 – Electricity – Outstanding arrears from previous owner – The petitioner, a partnership firm, sought a writ petition under Article 226 challenging a decision by the Assam Power Distribution Company Limited (APDCL) to deny a new electricity connection to their premises due to outstanding arrears from previous electricity bills.

The court directed interim relief for immediate electricity connection, subject to 50% payment of outstanding dues, with the remaining 50% to be paid upon dismissal of the writ petition.

The petitioner participated in an auction sale of a property and purchased a portion of land with a Business Centre cum Market Complex. They subsequently applied for a new electricity connection, which was denied by APDCL citing outstanding dues.

The court referred to the Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 and the Electricity Act, 2003. It cited a Supreme Court decision (K.C. Ninan vs. Kerala State Electricity Board) regarding the liability of auction purchasers for previous dues in properties sold on ‘as is where is’ basis.

The court dismissed the writ petition, holding the petitioner liable for outstanding electricity dues as per the auction sale agreement. It directed the petitioner to pay the outstanding dues as per the interim order, with APDCL waiving the accrued interest on the principal dues. (Para 15, 16)

GAUHATI HIGH COURT

2023 STPL(Web) 182 Gauhati

[2024 STPL 1650 Gauhati]

M/S Borah And Companyjiban Phukan Nagar Vs. Assam Power Distribution Company Ltd. And 3 Ors.

WP(C) 989 of 2014-Decided on 7-11-2023

2023 STPL(Web) 182 Gauhati

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