2017 (1) AKR 165

Karnataka High Court

Hon'ble Judge(s): A. S. Bopanna , J

(A) Karnataka Societies Registration Act (17 of 1960) S. 25 and 27-A — Appointment of Administrator — Management of society — Enquiry regarding constitution, working and financial condition of society as contemplated under S 25, not found to be held by Registrar — Notice as issued by Registrar, did not refer any findings regarding misappropriation of funds, as recorded after due consideration of procedure and enquiry report — Secretary of society initiated complaint regarding misappropriation by petitioners and also conceded to appointment of Administrator — Secretary of society however being adversary of petitioners due to faction feud between parties, his consent cannot be acceded to — Appointment of Administrator on account of factional feud between parties, not justified

(B) Karnataka Societies Registration Act (17 of 1960) S. 25 — Karnataka Societies Registration Rules (1961), R 8 — Enquiry by Registrar — Misappropriation of funds — Enquiry? regarding misappropriation of society funds not held in terms of R 8 — Though audit report relied on to reach conclusion regarding misappropriation of funds, no such adverse report put to petitioner seeking their explanation — Undertaking given by both rival factions to effect that they settled matter mutually and same accepted by Competent Authority in casual manner despite clear findings regarding misappropriation of funds — Fresh enquiry as prescribed under S 25 required to be conducted duly complying with procedure contemplated (Paras 11 and 13)

(C) Karnataka Societies Registration Act (17 of 1960) S. 25 and 27-A — Appointment of Administrator — Continuation of — Proceedings of enquiry of misappropriation of society funds and appointment of Administrator not held as contemplated in law — Influence as exhibited by respondent-secretary of society by filing complaint regarding misappropriation through minister, not appropriate for taking decision dispassionately — Initial position before conducting enquiry and appointing administrator directed to be restored — Fresh enquiry as prescribed under S 25 required to be conducted