pms08122021cw32652020 213621 406021
pms08122021cw32652020 213621 406021
pms08122021cw32652020 213621 406021
$~9 &10
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 8th December, 2021
+ W.P.(C) 3265/2020 & CM APPL. 13290/2020
THE INDIAN VETERINARY ASSOCIATION (REGD) ... Petitioner
Through: Mr. Sardavinder Goyal, Mr.
Sarwinder Goyal & Mr. Raj Selwan,
Advocates.
versus
Tamil Nadu Societies Registration Act, 1975. Its registration dates back to
18th May, 1967 with the name - The Indian Veterinary Association. The
elections to this body were last held in 2019 wherein Dr. Chirantan Kadian,
who has filed the present petition, was appointed as the President of the
Association. The President is stated to be currently holding his position as
and the society is fully operational.
3. The Petitioners in WP(C) 3402/2020 are Trustees of Lal Bahadur
Shashtri Educational Trust, which owns the institute M/s Lal Bahadur
Shashtri Institute of Management. The allegation against the Respondent in
this petition is that a co-trustee of the said Trust has, to deceive the general
public, registered a society by the same name i.e., Lal Bahadur Shashtri
Educational Society, in accordance with the Society Registration Act, 1860.
4. The challenge in these petitions is to the registration of identically
named organisations in Delhi as Societies - i.e. ‘Indian Veterinary
Association’ in WP (C) 3265/2020, and ‘Lal Bahadur Shashri Educational
Society’ in WP (C) 3402/2020 , under the Societies Registration Act, 1860.
The main question is as to whether the Registrar of Societies has the power
to cancel the registration of a society, under the Societies Registration Act,
1860. This Court has heard these matters from time to time.
Submissions of Mr. Sardavinder Goyal, ld. Counsel for Petitioner in
WP(C) 3265/2020
affidavit was filed by Mr. Radhey Shyam Sharma dated 14th July, 2017 with
the Registrar of Societies, claiming that there is no society, which is
identical or resembling to the Respondent’s society. On the strength of this
affidavit, approval of registration was granted by the Registrar of Societies,
Delhi on 5th March, 2019.
6. Upon becoming aware of the registration of the Respondent No.4-
Association, the Petitioner submitted an application to the Registrar of
Societies with a request for cancellation of the said registration, on 16th
September, 2019. The Registrar of Societies, upon receiving the application
of the Petitioner issued a show-cause notice to the Respondent Nos. 4, 5 and
6 calling upon them as to why the registration of the society ought not to be
cancelled and why a wrong affidavit was filed. The Respondent Nos. 5 and 6
filed their reply to this show cause notice, and the stand taken was that no
false affidavit had been submitted as the only statement made in the said
affidavit was that no society existed with an identical name in their locality.
A further stand was taken in the reply to the said show cause notice that the
Petitioner- Association is no longer functional. Thus, the Registrar of
Societies, Delhi sought an explanation from the Petitioner-Association in
respect of the same. Thereafter, a detailed explanation was furnished by the
Petitioner-Association explaining the same, however, the Registrar of
Societies, Delhi has rejected the request vide order dated 15th November
2019 on the ground that the matter should be raised before the Civil Court
for the purpose of redressal of grievances.
7. Accordingly, he submits that in the present petition the prayer is to
direct Respondent No. 2 and 3 to withdraw/ cancel the registration of
Respondent No. 4 association, and to take action to be taken against
W.P.(C) 3265/2020 & connected matter Page 3 of 20
Signature Not Verified
Digitally Signed By:Devanshu
Signing Date:11.12.2021
21:33:50
Chennai and the same was dismissed. He secondly relies upon the
document dated 26th February 2021, by which the Principal Secretary to the
Government condoned the delay in filing of the returns of the Petitioner-
Society. Reliance is also finally placed upon the response received from the
Registrar of Societies in reply to the Petitioner’s request. Thus, he submits
that the Petitioner-Association is very much functional, and reliance is
finally placed on the response received from the Registrar of Society to the
RTI which is available on Page no. 28 of the Application for stay, wherein it
has been stated that no dissolution proceedings have been commenced by
the Petitioner-Society.
10. Thus, it is the submission of Mr. Goyal that on both counts, the case
of the Respondents is completely bereft of merits, and the Registrar of
Societies has power to cancel the registration of Respondent No. 4-Society.
Thus, he submits that the present writ petition deserves to be allowed.
Submissions of Mr. Anil Goyal, ld. Counsel for Petitioner in WP(C)
3402/2020
11. Mr. Anil Goyal, ld. Counsel appearing for the Petitioners in WP(C)
3402/2020 has adopted the arguments of Mr. Sardavinder Goyal, in respect
of the legal issues raised in the present petition. He has further submitted,
relying upon the report of the Law Department of Delhi Government where
an opinion was sought as to whether the Registrar of Societies would be
empowered to cancel the Registration conferred, that the Registrar has the
said power. The said report relies upon Section 21 of the General Clauses
Act, 1977 and the judgment of the Supreme Court in Indian National
Congress (I) v. Institute of Social Welfare and Ors. (AIR 2002 SC 2158)
and reads as under:
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Digitally Signed By:Devanshu
Signing Date:11.12.2021
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13. On the strength of all these four judgments, he submits that under
Section 12 of the Societies Registration Act, 1860, no power is conferred
upon the Registrar of Societies to perform, while performing his quasi
judicial functions, to cancel registrations. He further urges that Section 21 of
the General Clauses Act, 1897, has been interpreted in all the above four
judgments of the coordinate bench of this Court, wherein the Courts have
consistently arrived at a conclusion that Section 21 of the General Clauses
Act, 1897, would not have any applicability.
14. On merits, Mr. Yadav, ld. Counsel, submits that he is not making any
submissions in view of the fact that as no power to cancel registrations are
vested with the Registrar, on merits, the Petitioners would have to be
directed to avail of their remedies in accordance with law.
15. Ms. Mrinalini Sen Gupta and Mr. Harish Vaidyanathan Shankar, ld.
Counsels, appearing for the Registrar of Societies, submit that the Registrar
of Societies does not have any power to cancel the registration. This has also
been specifically pleaded in the counter affidavit filed by the Respondent
No. 2, Mr. Pradeep Tayal, SDM (Civil Lines)/ Registrar Of Societies,
wherein he states as under:
“B. I say that the present Petition is not maintainable
against the Answering Respondent and ought to be
dismissed for the primary reason that there is no
stipulation empowering the Registrar of Societies/
Answering Respondent to carry out
cancellation/withdrawal of Registration of any Society
once it is registered. The same can be done only
16. Reliance is also placed upon the judgment of the Division Bench of
this Court in Areness Foundation v.Government of NCT of Delhi and Anr.
AIR 2019 Del 59, to argue that the Registrar of Societies is similar to the
Sub-Registrar’s act of registering documents under the Registration Act
1908, and does not have the power to annul or cancel the said registration.
17. In rejoinder, both ld. counsels for the Petitioners in these petitions,
submit that Registrar of Societies is taking contradictory pleas to their stand
in these cases, in W.P.(C) 13740/2019 and W.P.(C) 8040/2020 which are
pending before the Court, and where the Registrar of Societies has cancelled
the registration which has been issued.
18. It is also submitted that the Registrar of Societies cannot be rendered a
toothless tiger by the registration sustaining on the basis of a false affidavit.
The judgment of the full bench of the Guwahati High Court in Atowar
Rahman (supra) is again pressed into service.
19. Heard ld. Counsels for the parties and perused the record.
20. The following reliefs are sought in these petitions:
WP(C) 3265/2020
“i. Issue a writ in the nature of mandamus directing
respondent no. 2 to cancel/withdraw the
registration of respondent no. 4 association in view
of the fact that the petitioner association is already
registered with registration no. 96/1967 dated
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Signature Not Verified
Digitally Signed By:Devanshu
Signing Date:11.12.2021
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WP(C) 3402/2020
“It is therefore, most respectfully prayed that by means
of appropriate order/direction/writ, the Respondent may
be directed to decide the Complaint dated 27.08.2019
Annexure-P-1 of the Petitioners by well speaking,
detailed and reasoned order, after hearing the
petitioners, in the interest of justice.”
21. The Registrar of Societies is an authority which is recognized under
the Societies Registration Act, 1860, as the statutory authority for granting
registrations to societies. The said Act has various provisions which confer
the power upon the Registrar to register societies.
22. A perusal of Section 2 of the Act shows that every society ought to
have a Memorandum of Association, and the same has to be filed along with
a copy of the rules and regulations of the society, with the Registrar. Once
the said memorandum and rules, along with the stipulated fee is filed, the
society shall be certified as registered by the Registrar of Societies, under
the provision of Section 3 of the Act. There is no process of checking by the
Registrar or objections to be filed by third parties that is stipulated in the
Act.
23. Further, various forms are also prescribed and affidavits are also
sought by the Registrar, however the same are only mentioned under the
Rules that have been framed by the GNCTD in respect of the applicability of
the Act to Delhi. In most cases, allegations are raised that false affidavits are
filed and wrong information is being supplied to the Registrar of Societies.
24. Under Section 12 of the Act, there are certain provisions which have
been added by various later State amendments, specifically conferring
power upon the Registrar to cancel the registration. However, insofar as
Delhi is concerned, no such amendment permitting the Registrar to cancel
the registration of a society has been enacted. Curiously however, there is a
Delhi State Amendment adding Section 12A to the Act which reads:
“Sections 12A and 12B
Delhi — After section 12, insert following sections,
namely.
“12A. Registration of change of name.—(1) Where a
proposition for change of name has been agreed to and
confirmed in the manner prescribed by section 12, a
copy of the proposition so agreed to and confirmed
shall be forwarded to the Registrar for registering the
change of name. If the proposed name is identical with
that by which any other existing society has been
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Signature Not Verified
Digitally Signed By:Devanshu
Signing Date:11.12.2021
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27. A similar view has been taken by the ld. Single Judge of this Court in
Brij Mohan Gupta (supra).
28. In Pritam Singh (supra), a question arose as to whether the Registrar
of Societies could cancel the registration given in favour of one ‘Gurudwara
Singh Sabha Dera Baba Wadbhag Singh Society’. A ld. Single Judge of this
Court, in this case, has held that clearly there is no power conferred to the
Registrar of Societies to cancel the registration.
W.P.(C) 3265/2020 & connected matter Page 13 of 20
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Digitally Signed By:Devanshu
Signing Date:11.12.2021
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ASSAM:
“3A. Name of Society-
(1) No society shall be registered under a name which
is identical with, or too nearly resembles, the name of
any other society or any body corporate which has
been previously registered or incorporated under this
Act or any other law for the time being in force, as the
case may be.
….
[Vide Assam Act 13 of 1967, sec. 2 (w.e.f. 18-8-
1967)]”
Such a provision does not exist in the context of the Act as applicable to
Delhi. Thus, the judgment of the Guwahati High Court in Atowar Rahman
(supra) is not applicable on facts and the statutory position as prevalent in
Delhi.
32. This Court, however, does not agree with the submission of the
Registrar of Societies, that the power exercised by it is identical to the power
exercised by the Sub-Registrar who registers documents under the
Registration Act, 1908. The said power may not be identical in terms of the
power conferred under the respective statute.
33. Further the reliance of the ld. Counsel for the Petitioner on the report
of the Delhi Government, Law Depeartment, which in turn relies upon the
Indian National Congress (supra) judgment is of no use to the Petitioners.
This opinion is, in any manner, not binding on this Court, as it has
completely ignored the four precedents of the Delhi High Court which have
been noted above, clearly holding that the Registrar of Societies has no
power to cancel registrations. Further, the judgment of the Supreme Court in
Indian National Congress (supra) has also been considered by a ld. Single
37. It is, however, important to highlight one issue that concerns this
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Digitally Signed By:Devanshu
Signing Date:11.12.2021
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Court. Societies that are registered under the Societies Registration Act,
1860, are permitted by law to conduct various activities as per their own
Memorandum, rules and regulations. The broad public policy is to not allow
registration of similar or identical names which may cause deception or
confusion in the minds of those who deals with these societies. This aspect
of public policy is evident and has been recognized statutorily both under
statutory law and under common law, under various statutes like the
Trademarks Act of 1999, Section 4(2)(a) of the Companies Act, 2013, as
also under the common law of passing off. Unfortunately, the Societies
Registration Act, 1860, as applicable to Delhi, does not have a specific
provision for non-registration of a name which is already registered. Such
provisions exists in the states of Assam, Goa, Daman and Diu, Gujarat,
Maharashtra etc., which have enacted amendments to the Societies
Registration Act, 1860 to incorporate the same. The spirit of the policy is
evident from a perusal of Section 12A of the Act as amended in Delhi,
extracted above, where the legislature clearly recognizes that in the case of
change in name, no name which is identical to an existing society is to be
registered. It is however unclear as to why such a provision has not been
introduced in Section 3, that is the stage of initial registration, in addition to
change of name. Further, in some states like Uttar Pradesh, by an
amendment to Act, the Registrar of Socities has been vested with the power
under Section 12D to cancel the registration of any society on the ground of
the registration of the name being contrary to the provisions of any law or if
the activities of the society are opposed to public policy, or
registration/renewal obtained by fraud. Such provisions need to exist in
order to make available quick and efficient remedies for persons who are
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Digitally Signed By:Devanshu
Signing Date:11.12.2021
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Statute: Provisions:
The Companies Act, 2013 Section 4(2)(a), Section 16, - Verification for
identical or resembling name or mark as also
for Rectification of the name of the company.
The Trademarks Act, 1999 Sections 9, 11 – Verification of an existing
mark which may conflict with the mark
applied for.
Section 57- Power to cancel or vary
registration and to rectify the register.
The Limited Liability Section 15 - No LLP to be registered which
Partnership Act, 2008 has an identical or similar name or trade
mark.
Section 75 - Power of Registrar to strike off a
limited liability partnership from the register.
Such provisions are necessary in the Societies Registration Act, 1860 and
essential in order to maintain the sanctity of the ‘Register’ of Societies,
which could be abused by obtaining wrong and deceptive registrations.
Thus, there is an imminent need to consider amendments in the Societies
Registration Act, 1860, as it applies to Delhi, for including provisions to
safeguard the rights of third parties who may have grievances with the grant
of registration to a particular society. In addition, the Registrar of Societies
also ought to be an authority which exercises the responsibility of granting
registrations to a society after at least doing a basic check as to whether a
society with an identical/similar name exists or not. For this purpose, a
national database of societies may have to be created and access of the same
would have to be provided to all the Registrars across the country, to check
for existing Registered Societies, while granting registrations to new ones.
Finally, it also appears that the Registrar of Societies itself, as an authority,
is under confusion as to whether it has the power to cancel registrations or
not, which is reflected in differing stands that it takes in various writ
petitions, as can be gathered from the submissions made in these petitions.
38. Accordingly, let a copy of the present judgment be sent to the
Principal Secretary (Law, Justice and Legislative Affairs), Delhi
Government- Mr. Sanjay Kumar Aggarwal, as also to the Secretary,
Ministry of Law and Justice, Government of India- Mr. Anoop Kumar
Mehndiratta, for consideration of the above and for taking appropriate
measures.
39. The digitally signed copy of this order, duly uploaded on the official
website of the Delhi High Court, www.delhihighcourt.nic.in, shall be treated
as the certified copy of the order for the purpose of ensuring compliance. No
physical copy of orders shall be insisted by any authority/entity or litigant.
PRATHIBA M. SINGH
JUDGE
DECEMBER 8, 2021/Aman/dj/Ak
(corrected & released on 11th December, 2021)