Case Note & Summary
The appellant, Matunga Gymkhana, challenged an interim order passed by the City Civil Court, Bombay, which stayed the cancellation of the membership of the plaintiff-respondent. The plaintiff was enrolled as a member based on an application by his grandfather, a life member. The gymkhana cancelled the membership on the ground that the grandfather had misrepresented the plaintiff as his son. The plaintiff filed a suit challenging the cancellation and sought interim relief. The trial court granted the stay, citing breach of natural justice, delay in taking action, and that the plaintiff could not be compensated in money. The gymkhana appealed, arguing that the civil court had no jurisdiction to review its decisions unless the action was without jurisdiction, in breach of natural justice, or mala fide. The High Court, relying on precedents such as T.P. Daver v. Lodge Victoria and Royal Western India Turf Club Ltd. v. Vinayak J. Gaekwad, held that the civil court does have jurisdiction in such cases. The court found that the gymkhana had issued a show cause notice but did not give the plaintiff a proper opportunity to be heard, and there was a significant delay in taking action. The High Court upheld the interim order, noting that the balance of convenience was in favor of the plaintiff and that membership of a club is not compensable in money. The appeal was dismissed.
Headnote
A) Civil Procedure - Jurisdiction of Civil Court - Club Membership Dispute - Civil Court has jurisdiction to review decisions of a club if the action is without jurisdiction, in breach of principles of natural justice, or mala fide - The court held that the trial court's interim order was justified as the cancellation was in breach of natural justice and there was delay in taking action (Paras 6-10).
B) Club Law - Membership Cancellation - Principles of Natural Justice - Cancellation of membership without proper opportunity of hearing violates natural justice - The court noted that the show cause notice was issued but the plaintiff was not given adequate opportunity to defend, and the decision was taken without considering his explanation (Paras 7-10).
C) Interim Relief - Irreparable Loss - Membership of a club is not compensable in money - The trial court correctly held that the plaintiff cannot be compensated in terms of money, and the balance of convenience was in favor of granting interim stay (Paras 5, 10).
Issue of Consideration
Whether the Civil Court has jurisdiction to interfere with the decision of a club to cancel membership, and whether the trial court was justified in granting interim stay on the cancellation of membership.
Final Decision
Appeal dismissed. The interim order passed by the City Civil Court, Bombay, staying the cancellation of membership is upheld.
Law Points
- Civil Court jurisdiction over club membership disputes
- breach of natural justice
- delay in taking disciplinary action
- interim relief for irreparable loss
Case Details
Appeal from Order (St.) No. 3521 of 2019 with Civil Application (St.) No. 3522 of 2019
Mr. P.S. Dani, Sr. Advocate a/w. Murari Madekar and Sachin Kudalkar i/b. Madekar & Co. for the appellant. Mr. Gauraj Shah i/b. Kanga & Co. for R.Nos.1 and 2. Mr. Ramchandran N. i/b. Narayanan & Narayanan for R.No.5. Mr. V.A. Kapse a/w. Mr. Upendra Mahadik i/b. Fast Track Legal for R.No.11.
Sandeep P. Kishnani & Ors.
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Nature of Litigation
Appeal against interim order staying cancellation of club membership
Remedy Sought
Appellant sought to set aside the interim stay granted by the trial court
Filing Reason
Appellant challenged the trial court's order staying the cancellation of plaintiff's membership
Previous Decisions
Trial court granted interim stay on cancellation of membership vide order dated 16/01/2019 in Notice of Motion No.4465/2018 in Suit No.3087 of 2018
Issues
Whether the Civil Court has jurisdiction to interfere with the decision of a club to cancel membership?
Whether the trial court was justified in granting interim stay on the cancellation of membership?
Submissions/Arguments
Appellant argued that the Civil Court has no jurisdiction to review decisions of the club unless the action is without jurisdiction, in breach of natural justice, or mala fide.
Appellant submitted that the membership was cancelled after show cause notice and unanimous resolution, and the plaintiff was enrolled based on misrepresentation.
Respondent argued that the cancellation was in breach of natural justice and there was delay in taking action.
Ratio Decidendi
The Civil Court has jurisdiction to interfere with decisions of a club if the action is without jurisdiction, in breach of principles of natural justice, or mala fide. The trial court's interim order was justified as the cancellation was in breach of natural justice and there was delay in taking action.
Judgment Excerpts
The learned Judge has granted the interim relief and stayed the effect and implementation of the decision taken by the defendant Gymkhana to cancel the membership of the plaintiff, mainly on the ground of breach of principles of natural justice, delay in taking action and further holding that the plaintiff no.1 cannot be compensated in terms of money.
Relying upon the decisions in T.P. Daver v/s. Lodge Victoria [AIR 1963 SC 1144] and Royal Western India Turf Club Ltd. and Ors. v/s. Vinayak J. Gaekwad and Ors. [2006(6) Mh.L.J.665], Mr. P.S. Dani, learned senior counsel for the defendant gymkhana submits that the Civil Court would have no jurisdiction to review the decisions of the Defendant Gymkhana, unless the action is without jurisdiction, or is in breach of principles of natural justice or the order/action is malafide or is in bad faith.
Procedural History
The plaintiff filed Suit No.3087 of 2018 in City Civil Court, Bombay, challenging cancellation of membership. The trial court granted interim stay vide order dated 16/01/2019 in Notice of Motion No.4465/2018. The defendant gymkhana appealed to the High Court against that order.
