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2021 (1) TMI 614

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..... was allotted and the share certificate was also issued on 30.09.2012 in respect of his share on that day. Thus, it has been contended the appellant has been a shareholder/ permanent member of the company. 3.  It has been further stated that the both the appellants have been illegally and fraudulently expelled from the membership of the club and their name has been removed from the register of members by the Respondent Club without any sufficient cause with effect from 31.01.2017, pursuant to the Resolution passed at the meeting of the managing committee of the Club held on 04.12.2016 and the expulsion was communicated to the appellant on 31.01.2017 by Hony. Secretary of the Club. 4.  It is further stated that prior to 30.01.2017 the name of the  appellants appeared in the Register of the members of the company and has been removed after 31.01.2017 filed by the Respondent Company with ROC, further a show cause notice was  served upon the appellants in which, the allegation was levelled against him that he distributed pamphlets containing obnoxious message harming the image of the club at the behest of one of the member namely, Mr. N.P Singh who is also one of t .....

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..... report has been signed by Mr. Ashish Tiwari in his official capacity as SPRA, Varanasi and not as an enquiry officer appointed by the club. Further, as regard to the allegations of misutilisation and embezzlement of  Rs. 3,79, 566/- the Club made against Dr. N .P  Singh, it reflected from the enquiry report that due procedure as prescribed for making payment was not followed while making the payments and managing committee decided to discuss and take up the matter in its further meeting, thereafter the appellant has been issued letter pursuant to the decision taken by the Managing  Committee in the meeting held on 18.01.2017 regarding the expulsion of the Appellant. 9.  It was further contended that expelling the appellants from the membership was passed in flagrant violation of the provisions contained in Article 62 (a) as the clause mandated that the decision to expel a member shall be taken by 2/3rd members of the managing committee by secret ballot on the recommendation of the Hony. Secretary. It is contended that in the present case there was no recommendation of the Hony. Secretary and neither the resolution to expel the appellants was passed by secret ba .....

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..... s decided that the Appellant be expelled from his membership, since Appellant during his tenure as Hony. Secretary (FY 2008-09) had indulged into obnoxious and anti-club activities seriously damaging the interest and goodwill of the Respondent No. 1 club as per the provision of Article 37 (IV), 62, 62 (a), (b), 63 (a) & (b) of the Article of Association Of the Club and it bye laws. Accordingly,  on 22.06.2010, the Hony. Secretary of the Respondent No. 1 issued a letter addressing to the Appellant that his Membership has been terminated and his shared capital in the Respondent No. I's Company has been forfeited. 12.  It is argued further that, on 20.10.2010 the Managing Committee of the Respondent No. 1 called and AGM was convened and discussion about the expulsion order dated 20.06.2010 of the Appellant i.e Dr. NP Singh and with majority members in the AGM and after obtaining, expert's opinion and to avoid litigation,  revoked the aforesaid expulsion order subject to withdrawal of all the cases filed by the Appellant against the Respondent No. 1. 13.  It was further contended that the unlawful activities of the Appellant did not stop and he once again .....

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..... "secret ballot" was a conscious decision taken by the Hony. Secretary and the same cannot be challenged. Further submitted that the appellant was duly present in the meeting prior to the expulsion and the minutes of the meetings prior to the expulsion of the Appellant duly record his attendance and the detailed discussion on the points raised by the appellants. 17.  After hearing the learned counsel for the Parties and after going through the record, it is revealed that the alleged publication which is said to have been published is not on record even the enquiry report, copy of which is annexed as Annexure No. RA-3 at page 77 of the rejoinder affidavit dated 06.08.2019 refers to the fact and which reads as follows:- 18.  However, there is nothing on record to show that any such publication was made in the newspaper as same has not been filed in the present proceedings. Annexure R-9 reflecting certain messages, which has been sent by the appellant have been filed at page 109 and 110 in the reply filed on behalf of the Respondent No. 1 dated 23.07.2019. The perusal of the said messages show that it is the messages between the members of the club inter se regarding certai .....

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..... re not made public, specially the content of which do not indicate that it was in any way derogatory to the prestige of the Club or was made With the intention to malign the reputation of the Club. Expulsion or termination of membership after initiation of the disciplinary proceedings is like imposing a major punishment which is to be done Very carefully and in such cases where it is proved beyond doubt that the member is guilty of a misconduct which has amounted to tarnishing the image of the Club or in any way hampering the best interest of the club. Records of the present case does not show anything to that affect. 22.  Perusal of Clause 36 of the Articles of Associations pertains to termination of membership of the Club, Clause 61 relates to the disciplinary proceedings against a member and Clause 62 relates to the expulsion of a member from the membership of the Club. 23.  The said provisions will apply only in case it is found by the Committee of Members that a particular member is showing/ doing   such misconduct which requires the termination of membership to attract Clause 36 and identically Clause 61 and 62 of the Articles of Associations would only .....

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