LI Network
Published on: 26 January , 2024 at 09:43 IST
The Supreme Court recently ruled that according to Section 15 of the Societies Registration Act, 1860, members who are disqualified due to defaulting on membership fees will not receive any notice, as they do not retain the right to vote or be considered as members.
The relevant provisions state, “Disqualified members –a member of a society is defined as someone who has been admitted according to its rules, paid dues, or signed the membership list, and has not resigned as per the rules. However, no person in arrears of subscription for over three months shall be entitled to vote or be considered a member.”
After reviewing these provisions, the Court concluded that members in default of their fees are not entitled to vote or be counted as society members. Therefore, not issuing them notices would not be illegal or prejudicial, as it would serve no purpose, the Division Bench of Justices Vikram Nath and Ahsanuddin Amanullah stated.
The case in question involves a society named Shikshan Prasarak Mandal, Mul. Before the President’s death, due to his poor health, the Executive Body passed a resolution appointing Advocate Babasaheb Wasade as the Working President to manage the Society’s affairs. As there were no elected office bearers, 16 members requested Wasade to convene a meeting for elections.
Elections were held, and a new Executive Committee was elected, with Wasade as President and another member as Secretary. Despite objections from seven individuals claiming membership and lack of notice, the Court noted they were in default of membership fees and thus treated as suspended members, justifying the non-issuance of notice.
The Court invoked the doctrine of necessity, allowing a working president to convene society meetings. Given the resolution passed due to the President’s ill health, it deemed the meeting necessary to prevent a prolonged vacancy in the executive body.
Referring to relevant bylaws, the Court clarified that Wasade, as the Working President, had the authority to call for a general body meeting, given the absence of elected office bearers.
Addressing retired members (Members 4 to 7) who continued paying subscriptions, the Court ruled their membership ceased upon retirement, as they were categorized as employee members dependent on their employment status.
The Court directed fresh elections for the new Executive Committee to be held within six months.
In summary, the Supreme Court’s ruling clarifies that defaulting on membership fees disqualifies individuals from voting rights and membership in societies, absolving the need for notices to such members.