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TMI Blog2008 (9) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... Companies Act in deference to the resolution passed in the said extraordinary general body meeting within two months thereafter. - OA NOS. 289, 290, 421 AND 422 OF 2008 CS NOS. 264 AND 382 OF 2008 - - - Dated:- 30-9-2008 - M. JEYAPAUL, J. R. Krishnaswamy, S. Selva and C. Ramesh for the Applicant. T.V. Ramanujam and T.V. Krishnamachari for the Respondent. JUDGMENT M. Jeyapaul, J. These applications are filed by the lawn members and rowing members of the Madras Boat Club seeking an order of interim injunction restraining the respondent-club from conducting any general body meeting before registration of the respondent-club and also to appoint a receiver to take charge of the affairs of the respondent-club a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o far implemented the resolution to register the club. The funds of the respondent-club are being wasted and several crores of rupees are allowed to be spent on building without any sanctioned plan. Hence, the relief as sought for. In the common counter affidavit filed by the respondent/defendant, it is contended that registration of the club which has the main object of promoting sports is only optional and not compulsory. The applicants opted to become a member of the respondent-club only after agreeing to act as per the bye-laws. The rights and privileges of the members are governed by the bye-laws. If the lawn members want to claim equal rights as rowing members, it is only the general body that has to decide such issues. The bye-laws ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of seven past presidents and five co-opted senior members as per the decision of the general body in August, 2007, is functioning well. Therefore, the respondents pray for dismissal of these applications. Learned senior counsel appearing for the applicants in O.A. Nos. 421 and 422 of 2008 and learned counsel appearing for the applicant in O.A. Nos. 289 and 290 of 2008 would submit that there was no election from the year 1996. Serious allegation of misappropriation has been levelled against the past president of the club. Though the strength of the lawn members is more compared to the strength of the rowing members in the respondent-club, an injustice is being committed in the matter of enforcing voting rights of the lawn members. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to go in for registration of the club under section 25 of the Companies Act, the earlier resolution passed in the year 1999 requires reconsideration. But, at any rate, the respondent has taken a decision, though it is not mandatory, to register the dub either under the Societies Registration Act or under the Companies Act. The question of appointing any receiver does not arise as no serious allegation has been made as against the present managing committee members who are none other than the past presidents and co-opted members. As rightly pointed out by learned senior counsel appearing for the respondent, very serious allegation of mismanagement has been alleged only as against the past president and office bearers of the respondent-cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less than Rs. 10,000 it shall be registered compulsorily under the Act. But, section 4(3) specifically states that the aforesaid provision under section 4(1) will not apply to any society which has, for its object, the promotion of religion, athletics or sports (including indoor games). The bye-laws of the first respondent would read that the object of the respondent-club is only to promote sports activities. Therefore, it is held that it, is not mandatory that the respondent-club should be registered as per the Tamil Nadu Societies Registration Act, 1975. But, the wisdom had dawned on the respondent-club to go in for registration of the club in order to make the club more accountable and also to avoid mismanagement of its financial matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Registration Act. Therefore, the court finds that in the interest of the club, an extra- ordinary general body meeting will have-to be convened to take a derision whether the respondent-club should be registered under the Tamil Nadu Societies Registration Act or under the Companies Act. There is nothing wrong in conducting an extraordinary general body meeting in the back ground of the development over the past nine years, despite the fact that a resolution was already passed to register the respondent-dub way back in the year 1999." Coming to the grievance of the lawn members that they have been completely discriminated in exercising their voting rights and consequently in participating in the management of the respondent-dub, it is fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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