Madras High Court
R.Jayaveera Pandian vs L.M.Krishnasamy Nadar on 27 April, 2022
C.S.No.673 of 2012
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 27.04.2022
CORAM
THE HON'BLE MRS.JUSTICE V.BHAVANI SUBBAROYAN
C.S.[Comm.Div] No.673 of 2012
1. R.Jayaveera Pandian
2. N.Tamizharasan [died] ... Plaintiff
Vs.
1. L.M.Krishnasamy Nadar
2. R.Mathivanan
3. R.S.Rajan
4. S.Vijayarajan
5. M.Ramaswamy
6. Chennai Vaz Kovilpatti Nadar
Uravin Murai Sangam,
Adyar, (Regd. No.45/84)
[Amended as per Orders dated 13.06.2016
& 27.06.2016 in Application No.672 / 2015]
7. M/s Crescent Auto Repairs and Services
India (Private) Ltd.,
rep. By its Director,
A.K.Abdullah ...Defendants
Plaint filed under Order VII Rule 1 CPC read with Order II Rules 3 &
5 praying for the following Decree against the defendants:
a) To direct the removal of the office bearers, defendants 1 to 5 from
Sangam of “Chennai Vazh Kovilpatti Nadar Uravin Murai Sangam” (Regd.
No.45/84)
1/20
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C.S.No.673 of 2012
b) To appoint new office bearers for the Sangam “Chennai Vazh
Kovilpatti Nadar Uravin Murai Sangam” (Formerly No.45/84)
c) To frame Scheme for the management of the suit property
belonging to the office bearers “Chennai Vazh Kovilpatti Nadar Uravin
Murai Sangam” (Reg.No.45/84) [Amended as per orders dated 13.06.2016
& 27.06.2016 in Appl.No.672/2015]
d) To direct the 1st defendant to render accounts for the income
received from the suit property from 16.07.1999 and deposit the amount in
the court.
e) To direct the defendants 1 to 5 to pay the costs of the suit and
f) To grant such other reliefs;
For Plaintiff : M/s R.Poornima
For Defendants : Set Exparte on 21.12.2021
JUDGMENT
The plaintiff / Society has filed the present suit seeking to grant
decree for the aforementioned prayers in favour of the plaintiff.
2. It was reported before this Court on 02.12.2019 that the second
plaintiff is no more and a memo was also filed to that effect, hence this suit
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C.S.No.673 of 2012
is confined only in respect of the 1st plaintiff alone. The brief facts of the
case of the plaintiff are as follows:-
(i) The plaintiff is the member of “Chennai Vazh Kovilpatti Nadar
Uravin Murai Sangam” (Regd No.45/84), a Society, registered under the
Societies Registration Act, 1975 and it was registered on 19.03.1984 as
No.45/84. There were about 120 Members in the society and the objects
of the society are to work for the benefit and welfare of Kovilpatti Nadars
residing in and around Chennai, who are members of the society. The
following persons were appointed as Managing Committee Members:-
1. L.M.Krishnasamy Nadar – President (1st defendant)
2. E.Thangaraj - Vice President (died)
3. Joseph Nadar - Vice President (died)
4. R.Mathivanan - Secretary (2nd defendant)
5. R.S.Rajan - Deputy Secretary (3rd defendant)
6. S.Vijayarajan - Treasurer (4th defendant)
7. M.Ramasamy - Member (5th defendant)
8. T.Dinakaran - Member (died)
9. M.Muthukrishnan - Member (died)
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C.S.No.673 of 2012
(ii) Among the said nine members, two vice presidents and two
members had died. Out of the contributions made by the members of the
said Society and the loan obtained from third parties, the property
consisting of land and building bearing D.No.18/1, New No.43, Lattice
Bridge Road, Adayar, Chennai – 20 was purchased in the name of the
said society under sale deed dated 29.01.1987 (Doc. No.225/1987). The
said society has been in possession and enjoyment of the said property.
(ii) While the matter stood thus, the 1st defendant and other members
of the managing committee due to mismanagement of the society's affairs
failed to hold Annual General Body meetings of the society and file the
audited reports of balance sheets and other relevant documents with the
Registrar of Societies for a long number of years and as a result of which,
the said Society became defunct in or about 1994 and the Registration of
the Society has also been cancelled by the Registrar of Societies. The
property mentioned above remained as the property of the society and the
property is in the nature of the Trust. In the year 1999, the property was
leased out to the 7th defendant herein for a period of 9 years from
16.07.1999. Though the lease period had expired in the year 2008, the 7th
defendant continues to be the tenant holding over and the 1st defendant
was collecting a rent of Rs.1,31,200/- per month from 01.08.2011.
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C.S.No.673 of 2012
(iii) Further, the defendants 1 to 5, who were the members of the
managing committee of the Society, in whom the suit property was vested
as per Section 18 of the Tamilnadu Societies Registration Act, 1975 are in
position of the trustees in respect of the suit property and are bound to
protect and preserve the same for the benefit of its members. The 1st
defendant, who is collecting the rents from the tenant, viz., 7th defendant, is
bound to render accounts to the members of the said society. But he has
failed to do so, however, spending the said money for his own personal
purposes.
(iv) That apart, the 1st defendant along with some members of the
said society has formed a new society in the same name, viz., Chennai
Vazh Kovilpatti Nadar Uravin Murai Sangam, Adyar and registered as
Regd.No.61/2006 on 16.02.2006. The plaintiffs came to know recently that
the 1st defendant, who is the president of the society (Regd. No.45/84) has
entered with an agreement of sale dated 26.09.2007 with the 7th defendant
for sale of the suit property for a sum of Rs.6,50,00,000/- and received an
advance of Rupees One Crore and also receiving a sum of Rs.2,50,000/-
every month towards the sale price. The 7th defendant has also filed a suit
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C.S.No.673 of 2012
in C.S.No.23 of 2012 before this Court for specific performance of the
agreement against the defendants 1 to 6 and the same is pending.
According to the plaintiffs, the property is worth of Rs.15 crores and the suit
property belongs to the Society 'Chennai Vazh Kovilpatti Nadar Uravin
Murai Sangam' (Regd.No.45/84) and the 1st defendant has no right to sell
the property and enter into agreement of sale. The bylaws of the society
does not authorize him or the members to sell the property. The proposed
sale and the agreement of sale are illegal and unlawful and beyond the
powers of the 1st defendant. The plaintiff submit that both the Societies
bearing Regd.Nos.45/84 and 61/2006 are different and have separate
legal entities. The Society bearing Regd.No.61/2006 is not a successor to
the Society Regd.No.45/84.
(v) The 1st defendant continues to be a trustee in respect of the suit
property and is answerable to the members of the society bearing
Regd.No.45/84. The defendants 1 to 5, who are also managing committee
members of the society have failed to protect the property and have been
negligent by their inaction. Since the defendants 1 to 5 are acting against
the interests of the Society [45/84] and the 1st defendant in breach of duty
and trust, has entered into an agreement for the sale of the suit property
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C.S.No.673 of 2012
with the 7th defendant, which is illegal and likely to alienate the property by
executing a sale deed in favour of the 7th defendant after receiving balance
sale price, they are liable to be removed from the trusteeship of the suit
property. Since there are no Rules at present for the management of the
suit property, it is just and necessary to frame a Scheme for the
management of the suit. As the 1st plaintiff is the member no. 31 in the
Society Regd. No.45/84, the property being trust property, he is interested
in protecting the property and from being unlawfully alienated. Hence the
present suit is filed seeking the aforementioned prayers.
3. On several occasions before the learned master, there was no
representation for the defendants and thereafter, the present suit was listed
before this Court and on 21.12.2021, since none appeared for the
defendants, they were set exparte.
4. Heard the learned counsel for the plaintiff and perused the
documents placed on record.
5. Admittedly, out of 120 members, the 1st plaintiff is the Member
No.31 in 'Chennai Vazh Kovilpatti Nadar Uravin Murai Sangam' (Reg
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C.S.No.673 of 2012
No.45/84) The objects of the said sangam are to work for the benefit and
welfare of the Kovilpatti Nadars residing in and around Chennai.
6. It is pertinent to point out that by way of an Application No.3303 of
2016, this Court, on 12.12.2017, has appointed an Advocate Commissioner
to conduct the election for plaintiff-association and accordingly, new office
bearers were elected. Subsequently, advocate commissioner has taken
possession and handed over the same to the newly elected office bearers.
Further, the newly elected body was permitted by this Court to withdraw the
monthly rent already deposited before the learned VIII Judge, Court of
Small Causes, Chennai in R.C.A.No.673 of 2014 in A.No.6538 of 2018
dated 01.10.2018 Thereafter, by order dated 14.11.2018 in A.No.6538 of
2018, the above said order was modified to the effect that the newly
elected office is entitled to receive the rents directly till completion of the
tenure of office. By order dated 23.10.2019, this Court, framed the
following issues for consideration:-
“(i) Whether the defendants 1 to 5 were mismanaging the affairs
of Chennai Vazh Kovilpatti Nadar Uravinmurai Sangam (Reg.45/84)
frittering away its property and siphoning off its funds?
(ii) Whether the plaintifffs' are entitled to get a scheme framed
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C.S.No.673 of 2012
for the management of the properties of Chennai Vazh Kovilpatti
Nadar Uravinmurai Sangam (Reg.45/84)?
(iii) Whether the first defendant should be directed to render
accounts for the rental income received from 16.07.1999 from the suit
property belonging to Sangam (Reg. 45/84)
(iv) Whether the plaintiffs are entitled to costs of the suit?
(v) To what other reliefs, the plaintiffs are entitled to?”
6. It is the grievance of the plaintiff that the defendants 1 to 5 , who
are the President, Secretary, Deputy Secretary, Treasurer and Member
had mis-managed the affairs of the society and failed to hold Annual
General Body Meetings and failed to file the relevant documents, on
account of which, the society had became defunt in the year 1994. In the
year 1999, the suit property was leased out to the 7th defendant for a period
of 9 years, though the same expired in the year 2008, the 7th defendant
continues to be a tenant. In addition to the same, the 1st defendant along
with other members had formed a new society in the same name, viz.,
'Chennai Vazh Kovilpatti Nadar Uravin Murai Sangam' and registered the
same as 61/2006 on 16.02.2006. Thereafter, the 1st defendant had entered
with an agreement of sale dated 26.09.2007 with the 7th defendant and
received an advance. Hence the plaintiff contended that the defendants in
collusion with each other have committed fraud on the property owned by
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C.S.No.673 of 2012
the Society, therefore, the very purpose of establishing the society was
defeated, left with no other option, the plaintiff is before this Court.
7. In order to prove the case of the plaintiff, the plaintiff, viz.,
R.Jeyaveerapandian was examined himself as P.W.1 and marked as
many as 18 documents, viz., Ex.P.1 to Ex.P.18. The plaintiff has filed the
sale deed dated 29.01.1987, as Ex.P.2, in order to prove that the property
was purchased from P.Selladurai, V.Kanagaraja and N.Sundaralingam in
favour of the Society. Further, the plaintiff has filed Ex.P.4 to Ex.P.11,
which are the certified copies of the documents for the property purchased
out of the plaintiff – Sangam's fund (45/1984). That apart, the plaintiff has
filed Ex.P.13, which is the cancellation of Sangam (Reg.No.61/2006) by the
District Registrar of Societies, which was registered by the 1st defendant,
vide Ex.P.3. Also, Ex.P.14, order dated 29.06.2016, passed by the District
Registrar of Society directing both the parties to redress their right before
the civil forum. In fact, the defendants have not chosen to let in evidence
to disprove the same.
8. Considering the submissions made by the learned counsel for the
plaintiff and in order to safeguard the property with a view to satisfy the
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C.S.No.673 of 2012
requirements, for which the society was established and to restrain the
defendants from entering into the property in any manner and deal with it
cladestinely, this Court, in the interest of justice, is inclined to partly decree
the suit in favour of the plaintiff in the following manner:-
(i) As far as Prayers 'a' and 'b' in the plaint, viz., (a) to direct the
removal of the office bearers / defendants 1 to 5 from Sangam of Chennai
Vazh Kovilpatti Nadar Uravin Murai Sangam (Regd No.45/84) and (ii) to
appoint new Office bearers for the Sangam 'Chennai Vazh Kovilpatti Nadar
Uravin Murai Sangam' are concerned, the same have become
'infructuous' in view of the fact that as per orders of this Court in
A.No.3303 of 2016 dated 12.12.2017, election was conducted and the
earlier office bearers / defendants 1 to 5 were removed and new office
bearers are elected and they were directed to assume charge on
28.02.2018.
(ii) With regard to Prayer 'c' in the plaint is concerned, viz., for
framing Scheme for the Management of the suit property belonging to the
Sangam 'Chennai Vazh Kovilpatti Nadar Uravin Murai Sangam'
(Reg.No.45/84), the Scheme for the Management of the Suit Property is as
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C.S.No.673 of 2012
follows:-
I. Name of the Sangam : Chennai Vazh Kovilpatti Nadar Uravin
Murai Sangam, 18/1, New Door No.43, Lattice Bridge Road, Adayar,
Chennai – 600 020. [Regd.No.45/84]
II. Objects of the Sangam : To Work for the benefit and welfare of
Kovilpatti Nadars residing in and around Chennai, who are members of the
Society.
III. The Monies of the Sangam : shall be utilised solely for the
objects of the sangam as aforesaid and shall not be utilised for any other
purposes whatsoever.
IV. Management: The Newly Elected Office Bearers, as per order of
this Court in A.No.3303 of 2016 dated 09.02.2018, shall maintain the
management of the property. The said newly elected office bearers shall
appoint themselves a Secretary and a Treasurer, who shall held office for
three years, but shall be eligible for relection.
V. Subject to the provisions herein contained and the Rules that may
be framed from time to time under the Scheme, the Office bearers shall
transact all business and determine all questions by resolution to be
passed at the meetings. No expenditure shall be incurred without the
previous sanction of the Office bearers at a meeting duly convened for
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C.S.No.673 of 2012
passing of such expenditure.
VI. The decision on any matter shall be according to the majority of
the votes of the Office bearers / Members. The president of the Sangam
shall have the casting acts.
VII. The Office bearers shall meet at least once in every month at a
place to be fixed by them.
VIII. All the funds of the Sangam shall be deposited in the Bank to
the credit of the Office Bearers and the same shall be operated upon only
under the joint signatures of both the Secretary and the Treasurer. The
Treasurer shall not keep in his hands more than a sum of Rs.100/- at a
time incash for meeting the incidental expenses of the Sangam.
IX. The books of accounts of the Sangam and inventary of the
movable properties shall be open to the inspection at the office of the
Sangam by any member of the society after due notice being given to the
Secretary.
X. The accounts of the Sangam shall be audited annualy by a
qualified auditor to be appointed by the Office Bearers and the auditor's
report together with the balance sheet shall be published in a prominent
place in the Sangam and shall be furnished on demand to any member of
the Society, free of charge.
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C.S.No.673 of 2012
General :
XI. All the properties of the Sangam, movable and immovable shall
vest with the office bearers. The office bearers shall from time to time
prepare and maintain a register of properties belonging to the Sangam.
XII. The Office bearers shall have power to grant lesses of the
Sangam Properties on proper terms for a period not execeeding three
years. The office bearers have no right to enter into a sale agreement or
to mortgage the property with any of the parties. Any two members of the
Sangam with the sanction of the Advocate General or the parties or the
office bearers, apply to the High Court for such further or other directions in
the matters may be necessary. In case of any emergency to deal with
property, the office bearers / members / parties shall approach the
High Court for further course of action, which will be initiated for the
welfare of the Society. The purpose of which the Sangam has been
initiated has to be followed strictly without any failure.
XIII. All suits and proceedings in courts of law shall be instituted or
defended in the name of the Sangam. All business on behalf of the
Sangam shall be transacted in the name of the Sangam.
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C.S.No.673 of 2012
XIV. No office bearer shall be entitled to any monies by way of
remuneration or by way of travelling charges or batta allowances for
himself or for service rendered in connection with the Sangam.
XV. The office bearers shall maintain lists of electors and shall frame
by-laws (a) for election of the office bearers and filling up the vacancies
and (b) for the conduct of business and affairs of the Sangam in general.
XVI. All the valuable documents etc., shall be secured in a safe box
or room with two locks and keys. One key shall be in the custody of the
Secretary and the other with the Treasurer.
With respect to Prayer 'd' in the plaint, viz., to direct the 1st
defendant to render accounts for the income received from the suit
property from 16.07.1999 and deposit the amount in the court is
concerned, since order dated 16.08.2017 passed in A.No.587 of 2013
has not been complied with, Contempt Petition has been preferred in
Cont.P.No.2268 of 2017 and the same is pending, therefore, the prayer
'd' is kept in abeyance and no order is being passed. As and when
the said Contempt Petition is disposed of, the plaintiff is at liberty to
file appropriate application.
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C.S.No.673 of 2012
Insofar as the prayer 'e', viz., to direct the defendants 1 to 5 to pay
the cost of the suit is concerned, this Court is not inclined to direct the
defendants to pay the cost of the suit, since the prayers a, b and d have
become infructuous, owing to the fact that new election has been
conducted and new office bearers have assumed charge and the
defendants 1 to 5 are removed from the Sangam.
In the result, the present Suit is partly decreed with costs to the
extent as indicated above.
27.04.2022
Index : Yes/No
Internet : Yes/No
Speaking /Non-Speaking Judgment
ssd
Exhibits produced on the side of the plaintiff:
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C.S.No.673 of 2012
S.No. Exhibits Date Description
1. P-1 '19.03.1984 Bye law of Chennai Vazhkovilpatti
Nadar Uravinmurai Sangam' reg.
no.45/1984
2. P-2 '29.01.1987 Sale deed in favour of 'Chennai
Vazh Kovilpatti Nadar Uravimurai
Sangam
3. P-3 '16.02.2006 1st defendant registered yet
another sangam with similar name
Chennai Vazhkovilpatti Nadar
Uravinmurai Sangam Adayar' reg.
no.61/2006
4. P-4 '08.09.2011 Certified copy of Doc.No.9985/
2011 for the property purchased
out of the Sangam 45/1984 fund
5. P-5 '21.10.2011 Certified copy of Doc.No.11956
/2011 for the property purchased
out of the Sangam 45/1984 fund
6. P-6 '21.10.2011 Certified copy of
Doc.No.1957/2011 for the
property purchased out of the
Sangam 45/1984 fund
7. P-7 '25.11.2011 Certified copy of
Doc.No.13330/2011 for the
property purchased out of the
Sangam 45/1984 fund
8. P-8 '25.11.2011 Certified copy of
Doc.No.13331/2011 for the
property purchased out of the
Sangam 45/1984 fund
9. P-9 '29.02.2012 Certified copy of
Doc.No.2038/2011 for the property
purchased out of the Sangam
45/1984 fund
10 P-10 '29.02.2012 Certified copy of
Doc.No.2037/2012 for the property
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C.S.No.673 of 2012
S.No. Exhibits Date Description
purchased out of the Sangam
45/1984 fund
11. P-11 '20.08.2013 Certified copy of
Doc.No.6598/2013 for the property
purchased out of the Sangam
45/1984 fund
12. P-12 '04.07.2011 Certified copy of
Doc.No.4392/2011 for the property
purchased at Sholinganallur of the
Sangam 45/1984 fund
13. P-13 '24.08.2016 Reg.No.61/2006 Sangam
cancelled by the District Registrar
of Societies South Chennai
14. P-14 '29.06.2016 Order Passed by the District
Registrar of Societies North
Chennai in Sangam 45/1984
directed both the group redress
their right before the civil forum
15. P-15 '11.08.2017 Statement of account filed by the
1st defendant in Appl.No.587 /2013
in C.S.No.673 of 2012
16. P-16 '12.12.2017 Order passed by High Court,
appointed Advocate Commissioner
to conduct Sangam 45/1984
election
17. P-17 29.01.2018 Advocate Commissioner
conducted Sangam election and
report of the election result
18. P-18 26.07.2018 Report of the Advocate
Commissioner that he broke open
the Sangam and handed the
Sangam office to the newly elected
office bearers.
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C.S.No.673 of 2012
Witnesses examined on the side of the plaintiff:
P.W.1. - Mr.R.Jayaveerapandian
27.04.2022
V.BHAVANI SUBBAROYAN, J.,
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C.S.No.673 of 2012
ssd
C.S.[Comm.Div] No.673 of 2012
27.04.2022
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