Friends Sports Club Vs the Inspector General of Registration

Prayer: Writ Petition filed under Article 226 of the Constitution of India seeking a Writ of Certiorari, call for the records pertaining to the Impugned order passed vide order No. 13575 / E1/ 2023 dated 10.02.2025 by the 2nd respondent and quash the same and consequently direct the respondents to change the address of the petitioner to No. 41 Kannan Road, Korukkupet, chennai 600 021 and pass such further or other order.

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For the Petitioner : Mr.K.Venkatesan For the Respondents : Mr.R.Sasikumar Government Advocate for RR1 to 3 Dr.C.E.Pratap Government Advocate for R4

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ORDER

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The Writ Petition is filed challenging the impugned order dated 10.02.2025. By the said order, the registration of the petitioner – Society was cancelled by the 2^nd respondent.

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It is the case of the petitioner that originally show cause notices were issued on 11.12.2023 and 10.10.2024. The only allegation that is made in the show cause notices is that the petitioner society's members are playing three Page 2 of 12

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cards which amounts to gambling and it is illegal. Already cases have been registered against the petitioner – society. The contents of the First Information Report are incorrect and that the petitioner is defending the criminal cases. As on date except the FIR, there is no other evidence available on the file of the 2^nd respondent, to conclude that the petitioner society's members are involved in playing three cards. Therefore, the FIR itself cannot form the conclusive proof for the allegation and the registration of the society cannot be cancelled.

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The other grounds that are mentioned in the impugned order is with

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reference to non-furnishing of proper accounts. The impugned order mentions as if, in the returns, only a sum of Rs.10,790/- was shown as the annual income of the society, whereas, in the enquiry, it was found that they are paying the monthly wages of around Rs.45,000/- to the employees of the society. Therefore, the Registrar of the Societies has come to the obvious conclusion that the society has been burking the real amounts and false information is filed by way of returns.

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It is the case of the petitioner that the allegation was not put to them for explaining their version.

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The Writ Petition is resisted by the respondent, by filing separate counter affidavits by the 2^nd respondent as well as the 4^th respondent.

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The 4^th respondent has given the details of three criminal cases that are pending in Crime Nos.210, 409 and 54 of 2023 as against the petitioner – Society. It is their case that repeatedly the petitioner – Society is involving in gambling by allowing its members to play three cards. As such action was taken by the Registrar of Societies.

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The Registrar of Societies has also filed a counter affidavit. It is stated that due show cause notice has been issued and the impugned order has been passed both in exercise of powers under Sections 36 as well as 38 of the Societies Registration Act, 1975. When the Society indulges in an unlawful activity, the same can be cancelled in exercise of power under Section 38 of the

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Societies Registration Act, 1975. Therefore, the impugned order has rightly been passed.

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Admittedly, the registration of the petitioner – Society was cancelled and the same cannot be done without affording an opportunity to the petitioner. In the instant case, the first show cause notice was issued on 11.12.2023, which

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reads as follows:-

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“bghUspy; fhQqk; ,dk; bjhlh;ghf ghh;itapy; fhQqk; fhty; Ma;thsh; mth;fspd; fojj;jpy; “gpuz;l;!; !;nghh;l;!; gpsg;” (gjpt[ vz;/363/1965) r';fk;. rl;lj;jpw;F g[wk;ghd gzk; itj;J K:d;W rPl;L vDk; Njhl;lk; elj;Jtjhft[k;. ,J bjhlh;ghf r';fj;jpd; brayhsh; jpU/rj;jpah. fl;olj;jpd; chpikahsh; jpU/uhka;ah cl;gl 20 egh;fs; kPJ vz;/4. bfhUf;Fg;ngl;il fhty; epiyaj;jpy; tHf;F gjpt[ bra;ag;gl;Ls;sJ vdt[k; j';fs; r';fj;jpy; rl;lj;jpw;F g[wk;ghf gzk; itj;J Njhl mDkjpj;jjhy; r';fj;jpd; gjpit ,uj;J bra;J eltof;if vLf;FkhWk; bjhptpf;fg;gl;Ls;sJ/ jkpH;ehL r';f gjpt[r; rl;lj;jpd; fPH; gjpt[ bra;ag;gl;l r';fk; rl;l tpnuhj bray;fspy; <LgLtjhf bjhptpf;fg;gl;l epiyapy; gphpt[ 38- d; fPH; j';fs; r';fj;jpd; gjptpid vz;/ uj;J bra;a TlhJ vd;gjw;fhf tpsf;fj;jpid ,f;fojk; fpilf;fg;gl;l ehspy; ,Ue;J 15

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jpd';fSf;Fs; ,t;tYtyfj;jpw;F mDg;gp itf;FkhW bjhptpf;fg;gLfpwJ/”

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It can be seen that the only reason that is mentioned in the show cause

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notice is that the criminal case has been registered with reference to gambling. Once again, another show cause notice was issued to the petitioner on

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10.10.2024 and the same is extracted hereunder:-

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“ghUspy; fhQqk; ,dk; bjhlh;ghf ghh;itapy; fhQqk; fhty; Ma;thsh; mth;fspd; fojj;jpy; “gpuz;l;!; !;nghh;l;!; gpsg;” (gjpt[ vz;/363/1965) r';fk;. rl;lj;jpw;F g[wk;ghd gzk; itj;J K:d;W rPl;L vDk; Njhl;lk; elj;Jtjhft[k;. ,J bjhlh;ghf 12 egh;fs; kPJ vr; 4 bfhUf;Fg;ngl;il fhty; epiyaj;jpy; tHf;F gjpt[ bra;ag;gl;Ls;sJ/ nkYk; nkw;go r';fj;jpd; gjptpid uj;J bra;J eltof;if vLf;FkhWk; bjhptpf;fg;gl;Ls;sJ/

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jkpH;ehL r';f gjpt[r; rl;lj;jpd; fPH; gjpt[ bra;ag;gl;l r';fk; rl;l tpnuhj bray;fspy; <LgLtjhf bjhptpf;fg;gl;l epiyapy; gphpt[ 38- d; fPH; j';fs; r';fj;jpd; gjptpid Vd; uj;J bra;a TlhJ vd;gjw;fhf tpsf;fj;jpid ,f;fojk; fpilf;fg;gl;l ehspy; ,Ue;J 15 jpd';fSf;Fs; ,t;tYtyfj;jpw;F mDg;gp itf;FkhW bjhptpf;fg;gLfpwJ/”

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It can be seen from the second show cause notice that the very same

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allegation is made. The petitioner submitted its explanation denying that its members are not playing three cards.

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It may be true that if the petitioner – Society or its members are indulging in playing three cards that would amount to gambling and a criminal offence and action can definitely be taken. But in respect thereof, in the show cause notice or in the impugned order, except mentioning the First Information Report, no other evidence is mentioned. The FIR by itself is not a conclusive evidence. The FIR will be investigated further by the police and they are yet to lay the charge sheet even by finding that the petitioner – Society has committed an offence or not. The same is only under investigation. No other evidence in the form of CCTV footage, or oral evidence etc., was mentioned in the impugned order.

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As a matter of fact, the learned counsel for the petitioner has placed materials on record that the hard disk of the CCTV has been removed and seized by the investigating officer for examining whether the inmates indulged in

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playing of three cards. Therefore, it is not also the case that the CCTV footage or any other evidence is on record. Therefore, coming of the conclusion only based on the FIR alone is incorrect in law.

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As far as the other allegations also, it is clear that the Registrar of Societies is entitled to take action. However, the Act contemplates the enquiry as laid down by the Act under Section 36 of the Tamilnadu Societies Registration Act, 1975. Even for the exercise of power under Section 38, it categorically mentions that the enquiry as contemplated under Section 36 of the Act has to be conducted. The least that is expected is that the allegation should be put to the petitioner in the form of show cause notice and their version should be heard. The Registrar of Societies can consider the version that is put forth by the respondent and grant opportunity for them to file such documents in support thereof and can also request for the documents even from the investigating authority in exercise of its power under Section 36 (8) etc., and to come to the conclusion only based on such evidence.

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In view thereof, this Writ Petition is disposed of on the following

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terms:-

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(i) The impugned order dated 10.02.2025 shall stand quashed;

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(ii) Already the show cause notices dated 11.12.2023 and 10.10.2024 was issued with reference to the allegation of conducting unlawful activity, that is playing three cards; an additional show cause notice can also be issued with reference to the other allegations that are made in the impugned order with reference to furnishing of incorrect accounts etc., within one week from the date of receipt of the website uploaded copy of this order;

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(iii) The petitioner can submit additional explanation within a period of two weeks from the date of receipt of the show cause notice. Thereafter, in respect of both charges, the 2^nd respondent shall conduct due enquiry; In the enquiry the 2^nd respondent shall also summon such other evidence from the investigating authority or any other person whomsoever in exercise of power under Section 36 of the Tamilnadu Societies Registration Act, 1975; It shall also take into consideration the explanation that is submitted by the petitioner and the petitioner can also file such other documents in respect of its case;

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Thereafter, once again the 2^nd respondent shall consider the matter and pass final orders in the manner known to law;

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