High CourtDivision BenchAppeal disposed of.

NANSHIBHAI S/O GANESHBHAI MIRANI v. BHUPENDRA P. POPAT and ANR

Case / Petition Number:Civil Appeal No. 1554 of 2007

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. Arijit Pasayat
  • Lokeshwar Singh Pant
Judgment Date
2007-03-23
Court Decision / Holding
The Supreme Court allowed the appeal in part by remitting the matter to the Bombay High Court for fresh consideration on two specific aspects: (i) the scope of reopening the entire matter after the consent order, and (ii) the effect of the resolutions taken at the 4 September 2005 meeting. It expressed no opinion on the maintainability of the application and directed expeditious disposal within three months from receipt of the order, while disposing of the appeal with no order as to costs.
Final Disposition
Appeal disposed of.

Parties to the Case

Appellants / Petitioners

  • Nanshibhai S/o Ganeshbhai Mirani

Respondents

  • Bhupendra P. Popat
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • R.F. Nariman
  • • H.A. Raichura
  • • S.H. Raichura
  • • R.M. Vithlani

Counsels for Respondents

  • • Rajeev N. Narula
  • • Hardeep Singh Anand

Case Synopsis & Summary

This appeal arises from a consent order in a dispute concerning the governance of Sri Lohana Mahaparishad, decided by the Bombay High Court and challenged in the Supreme Court. The High Court’s order directed a General Body Meeting to consider 23 agenda items, including elections to the presidency and to four trustees. In the subsequent meeting of the Madhyastha Maha Samiti, item nos. 9 and 22—pertaining to the election of four trustees and the President—were taken up first; a President and four trustees were elected, with Respondent No.1 acting as Chief Polling Agent for one trustee. Because of time constraints, the remaining agenda items were deferred to a later date. According to the appellant, after due notice to all members, the next meeting was held and the remaining items were adopted. The respondent challenged this, contending that the decisions on the remaining items could not be validly made by the newly elected governing body. The High Court accepted that the old governing body was the only body capable of deciding the remaining items, thereby violating the consent order. The Supreme Court found two critical omissions in the High Court’s reasoning: (i) the scope to reopen the matter after the consent order, and (ii) the effect of the resolutions taken at the 4 September 2005 meeting. It remitted the matter to the High Court for fresh consideration on these two aspects, with no opinion on maintainability, and directed expeditious disposal. The appeal was disposed of with no order as to costs.

Provisions of Law Cited

Code of Civil Procedure, 1908

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the High Court erred in holding that the old governing body alone could take the remaining decisions. Such a ruling would reset the clock and render the election of the new governing body futile. It was argued that the 4 September 2005 meeting was held after due notice to all eligible members and produced valid resolutions, and that Respondent No.1 filed the application in a disposed-of matter; the High Court improperly entertained it. The appellant submits that the old body’s term could not unilaterally control the remaining items after the new body’s election, and that the matter requires consideration of the maintainability of the application and the effect of the 4 September 2005 resolutions. Accordingly, the matter should be remitted to the High Court for fresh consideration on these two aspects, with no opinion on maintainability, and in a prompt manner.

Contentions of Respondents

The respondents argued that crucial agenda items were to be considered and that only the old governing body, whose term had not expired, had taken the relevant resolutions; the new governing body had no role in these items. They maintained that the consent order contemplated continuity in authority and that the High Court correctly found the old body as the proper decision-maker for the remaining items; the maintainability of the application and the effect of the 4 September 2005 resolutions should be tested within that framework and, if necessary, adjudicated on remand.

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Extracted Judgment Text

Exact text extracted from official judgment records.

_+_ A B # NANSHIBHAI S/O GANESHBHAI MIRANI # _v._ BHUPENDRA P. POPAT AND ANR. ## MARCH 23, 2007 [DR. ARillT PASA Y AT AND LOKESHWAR SINGH PANT A, JJ.] _Code of Civil Procedure, 1908:_ _Trust-Governing body-Function and power of-Filing of a suit_ C _relating to function of Sri Lohana Mahaparishad-Consent order passed by High Court directing the Mahaparishad to hold a General Body Meeting to consider 23 Agenda items-Consideration of few items in one meeting by the existing governing body and remaining in the next meeting by newly constituted governing body-Challenge to-High Court held that the old_ D _governing body was the only body which could take decision on the remaining items-On appeal, Held: High Court failed to consider two aspects, viz., the scope of reopening the entire matter after passing the consent order and the effect of decision taken by the newly constituted governing body-Hence the matter remitted to the High Court for consideration of these aspects._ E · A suit was filed relating to the function of Sri Lohana Mahaparishad, in which a consent order was passed by the Court against which an appeal was filed by respondent No.I before the High Court The High Court directed to have a General Body Meeting to consider 23 Agenda items including holding the election for the post of President and four trustees of the Mahaparishad. F In the meeting of the Madhyastha Maha Samiti ofMahaparishad, on the request of majority of members, item no.9 pertaining to the election of four trustees in place of the retiring trustees and agenda item no. 22 pertaining to election of the President was taken up. President and four trustees were elected. Respondent no.I was the Chief Polling Agent of one of the trustees. Due to paucity of time the meeting was adjourned for consideration of the remaining G agenda items at later date. According to appellant after due notice to all the members the next meeting was held and the remaining items of agenda were considered and adopted. Aggrieved, the respondent no.I filed an application alleging that the decision on remaining agenda items could not have been taken at a subsequent meeting by the newly elected governing body. The H petition was allowed by the High Court holding that the old governing body 398 399 NANSHIBHAI S/OGANESHBHAI MIRAN! _v._ BHUPENDRAP. POPAT _(_ .... D E was the only body which could have taken the decision so far as the remaining items of the agenda are concerned and, therefore, there was violation of the specific order as contained in the consent order. Hence the present appeal. Appellant contended that the High Court has clearly fallen into error by holding that it was the old governing body which had to take the decision, that would put the clock back and process of the election of the new body would B be an exercise in futility; that in fact, the meeting was held after due notice to eligible persons and decisions were taken; and that respondent No.1, at the behest of another candidate who lost presidential election, had filed the application and the High Court had erroneously entertained the application. > Respondents submitted that various vital agenda items were to be C considered. It was only the old governing body which had taken various resolutions which were to be discussed in terms of various agenda items and the new governing body had no role to play so far as these items are concerned. Disposing of the appeal, the Court HELD: 1.1. The High Court failed to consider two very relevant aspects. Firstly, the scope of re-opening the entire matter in the case after passing of the consent order was required to be considered. Secondly, it has failed to consider the effect of the decisions/resolutions taken at the meeting held earlier. [Para 7) [401-D-E) 1.2. It would be appropriate for the High Court to consider the ·maintainability of the application filed by respondent no.1 in the matter and the efft~t of resolutions taken on 4.9.2005, if it comes to hold that the application was maintainable. Accordingly, the matter is remitted to the High Court for fresh consideration of the aforesaid two aspects for which no opinion F has been expressed. [Para 8) [401-F-G] ## CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1554 of2007. > From the Judgment and Order dated 09.09.2005 of the High Court of Judicature at Bombay in C.A. No. 915/2005 in A.F.O. No. 427/2005. R.F. Nariman, H.A. Raichura, S.H. Raichura and R.M. Vithlani for the Appellant.' Rajeev N. Narula and Hardeep Singh Anand for the Respondents. H _+_ 400 [2007) 4 S.C.R. ## SUPREME COURT REPORTS A The Judgment of the Court was delivered by DR. ARIJIT PASA Y AT, J. 1. Leave granted. 2. Challenge in this appeal is to the judgment rendered by a learned Single Judge of the Bombay High Court allowing prayer made by respondent B NoJ for certain directions and directing to have a fresh meeting of Sri Lohana Mahaparishad (hereinafter referred to as the 'Mahaparishad'). 3. A brief reference as projected by the appellant to the factual aspects would suffice. C 4. A suit was filed relating to the function of Mahaparishad. On the basis of the consent order i.e. in an appeal from the order No.427/2005 the High Court directed to have a General Body Meeting containing 23 Agendas including the agenda for holding the election of President of the Mahaparishad and four trustees .. The suit was accordingly disposed of. A Court Commissioner was appointed and the agenda notice containing ~he details of D 23 agenda items were circulated to more than 650 members and the meeting was fixed at Ahmedabad on 3.7.2005. Thf. meeting of the Madhyastha Maha Samiti (in short 'Maha Samiti') of Mahaparishad was held. On the request of majority of members, item no.9 pertaining to the election of four trustees in place of the retiring trustees and agenda no.22 pertaining to election of the E President was taken up first after first formal agendas. Shri Jayantilal Govindji Kundalia was elected as a President and four persons including one T.R. Chitwani were elected as trustees. It is to be noted that in the election for the post of President and trustees both Shri Kundalia and Shri Chitwani were contesters. As noted earlier Shri Kundalia was elected as President while Shri Chitwani was elected as a trustee. Respondent no.I Sri Bhupendra P. Popat F was the Chief Polling Agent of Shri Chitwani. · It is not disputed that considering the paucity of time the meeting was adjourned for consideration of the remaining agenda items at the later date. According to appellant after due notice to all the members the meeting was held on 4.9.2005 and the remaining items of agenda were considered and adopted. Respondent no. I G Sri Bhupendra P. Popat filed an application making grievance that the decision could not have been taken at a subsequent meeting and it was only the earlier Board which could have taken up the remaining agenda items and not the newly elected governing body. The appellant questioned correctness of the acceptability of the stand of the respondent no. I. It was highlighted that after the new governing body was elected, th~ question of the old body whose H term had expired ~n 31.12.2004 could not have taken any decision. The High + I ## NANSHIBHAIS/OGANESHBHAIMIRAN!v.BHUPENDRAP.POPAT[PASAYAT,J.] 401 Court accepted that the old governing body was the only body which could A have taken the decision so far as the remaining items of the agenda are concerned and, therefore, there was violation .of the specific order as contained in the -Consent order. 5. Learned counsel for the appellant submitted that the High Court has clearly fallen into error by holding that it was the old body which had to take B the decision. That would put the clock back and process of the election of the new body would be an exercise in futility. In fact, there was a meeting held on 4.9.2005 where after due notice to eligible persons, decisions were taken. Respondent no. l Sri Bhupendra P. Popat at the behest of Shri Chitwani who lost presidential election had filed application in a disposed of case. The C High Court had erroneously entertained the application. " . 6. In response, learned counsel for the respondents held that various vital agenda items were to be considered. It was only the old governing body which had taken various resolutions which were to be discussed in terms of various agenda items and the new governing body had no role to play so far D as these items are concerned. 7. We find that the High Court failed to consider two very relevant aspects. Firstly, the scope of re-opening the entire matter in the case after passing of the consent order was required to be considered. Secondly, it has failed to consider the effect of the decisions/resolutions taken at the meeting E held on 4.9.2005. It is the stand of the appellant that due notice was given to the respondents and all eligible members and the resolutions were adopted after thorough discussion. 8. We do not think it proper to say anything about the effect of the resolutions/decisions. It would be appropriate for the High Court to consider F the maintainability of the application filed by respondent no. I in the matter and the effect of resolutions taken on 4.9.2005, if it comes to hold that the application was maintainable. Accordingly, we remit the matter to the High Court for fresh consideration of the aforesaid two aspects for which we . express no opinion. G 9. Since the matter is of urgency, we request the High Court to dispose of the matter within three months from the date of receipt of order. IO. The appeal is disposed of accorJingly with no order as to costs. S.K.S. Appeal disposed of. H