Bombay High Court Allows Appeal in Society Membership Dispute — Removal of Life Member Set Aside for Violation of Natural Justice. Managing Committee's Decision to Expel Member Without Proper Inquiry and Opportunity of Hearing Held Invalid Under Societies Registration Act.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellant, Ramswaroop Sunderlal Goyal, was a life member of the respondent, North India Association, a society registered under the Societies Registration Act. By a letter dated 9th September 2010, the managing committee of the society removed the appellant from his life membership. The appellant filed a civil suit seeking a declaration that the removal was illegal and an injunction restraining the society from giving effect to the expulsion. The trial court dismissed the suit, holding that the society had the power to expel members under its bye-laws. The appellant appealed to the High Court. The High Court allowed the appeal, holding that the managing committee's action was in violation of principles of natural justice and the bye-laws of the society. The court noted that the appellant was not given an opportunity of hearing before the expulsion and that the procedure prescribed in the bye-laws was not followed. The court set aside the trial court's judgment and decreed the suit, granting a permanent injunction restraining the society from expelling the appellant without following due process.

Headnote

A) Societies Registration Act - Expulsion of Member - Natural Justice - Managing committee's power to remove a life member - The managing committee of a society registered under the Societies Registration Act, 1860, cannot expel a member without following the procedure prescribed in the bye-laws and without giving an opportunity of hearing. The court held that the expulsion order was invalid as it violated principles of natural justice and the bye-laws of the society. (Paras 1-10)

B) Civil Procedure Code - Injunction - Suit for declaration and injunction - A civil suit challenging expulsion from a society is maintainable. The court held that the plaintiff had a prima facie case and the balance of convenience was in his favor, and granted an injunction restraining the society from giving effect to the expulsion order. (Paras 1-10)

C) Societies Registration Act - Bye-laws - Interpretation - The bye-laws of a society must be strictly construed. The court held that the managing committee's action was ultra vires the bye-laws as it did not follow the prescribed procedure for expulsion. (Paras 1-10)

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Issue of Consideration

Whether the managing committee of a registered society can expel a life member without affording him an opportunity of hearing and without following the procedure prescribed in the bye-laws.

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Final Decision

Appeal allowed. Judgment and decree of trial court set aside. Suit decreed with permanent injunction restraining the respondent society from expelling the appellant without following due process and principles of natural justice.

Law Points

  • Natural justice
  • Right of hearing
  • Expulsion from society membership
  • Societies Registration Act
  • 1860
  • Bye-laws interpretation
  • Life membership
  • Managing committee powers
  • Civil suit maintainability
  • Injunction against expulsion
  • Procedural fairness
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Case Details

2013 LawText (BOM) (04) 65

First Appeal No.15 of 2013 with Civil Application No.91 of 2012 in F.A.No.15 of 2012

2013-04-29

A. H. Joshi

Mr. Pritesh Rajgor i/b Ms. Usha Rahi for the appellant, Ms. Sweta. H. Doshi for the respondent

Ramswaroop Sunderlal Goyal

North India Association

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Nature of Litigation

Civil appeal against dismissal of suit challenging expulsion from society membership

Remedy Sought

Declaration that expulsion was illegal and injunction restraining society from giving effect to expulsion

Filing Reason

Plaintiff was removed from life membership by managing committee without opportunity of hearing

Previous Decisions

Trial court dismissed the suit

Issues

Whether the managing committee's decision to expel the plaintiff was valid under the bye-laws and principles of natural justice

Submissions/Arguments

Appellant argued that expulsion was without notice and opportunity of hearing, violating natural justice and bye-laws Respondent argued that managing committee had power to expel under bye-laws and that suit was not maintainable

Ratio Decidendi

A managing committee of a registered society cannot expel a life member without affording an opportunity of hearing and without following the procedure prescribed in the bye-laws. Such expulsion is invalid and violative of principles of natural justice.

Judgment Excerpts

This is the first appeal by unsuccessful plaintiff. The plaintiff's case espoused in the plaint is as follows:- (a) The plaintiff was member of the defendant's association. The defendant is society registered under Societies Registration Act. (b) By the letter dated 9th September, 2010 the managing committee of the defendant has removed the plaintiff from his life membership.

Procedural History

Plaintiff filed civil suit in trial court challenging expulsion. Trial court dismissed suit. Plaintiff appealed to High Court by way of First Appeal No.15 of 2013.

Acts & Sections

  • Societies Registration Act, 1860:
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