Supreme Court Upholds ‘Doctrine of Necessity’, Mandates Fresh Elections for Shikshan Prasarak Mandal – Resets Governance Dynamics
In a landmark judgment, the Supreme Court of India, in the case of 2024 INSC 52, has set a precedent by upholding the ‘Doctrine of Necessity’ in the context of society administration, particularly in situations where there is an absence of elected office bearers. The apex court’s decision overruled the Bombay High Court’s dismissal of an appeal regarding the rejection of a Change Report filed by the appellants in a dispute involving the Shikshan Prasarak Mandal.
The Court observed, “In the absence of the office bearers authorised under the bye-laws who could convene the meeting, the only option left for convening the meeting could either be with the Working President on his own or upon the requisition made by the members to convene a meeting.” This observation was pivotal in determining the legality of the meeting convened by the Working President of the Society, Advocate Babasaheb Wasade, for holding elections.
Impact on Membership Rights:
Addressing the issue of membership qualifications, the judgment clarified, “Members in arrears disentitled to vote or be counted as members,” emphasizing the consequences of default in the payment of annual subscriptions under Section 15 of the Societies Registration Act. This was a critical factor in the Court’s decision-making process, impacting the validity of the society meeting and subsequent elections.
Directive for Fresh Elections:
In a significant move to ensure fair and transparent governance within the Society, the Supreme Court directed the conduct of fresh elections for the Society’s Executive Committee. The Court ordered, “Fresh elections shall be held for the new Executive Committee of the Society by the Charity Commissioner in accordance with law within six months.”
The apex court’s decision not only resolves a longstanding dispute within the Shikshan Prasarak Mandal but also sets a significant legal precedent on the applicability of the ‘Doctrine of Necessity’ in civil society administration. The judgment is seen as a reaffirmation of the principles of transparent and legal functioning within such institutions.
Date of Decision: 23rd January 2024
ADV BABASAHEB WASADE & ORS. VS MANOHAR GANGADHAR MUDDESHWAR & ORS.
