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Tamil Nadu Chamber of Commerce and Industry Represented Thr. its Hony. Secretary and Anr. vs P. Mahendravel and Ors.

Supreme Court1 August 2018Sanjay Kishan Kaul · Kurian Joseph

Ratio decidendi

The rule this decision rests on

Where parties to a dispute concerning expulsion of members from an association have voluntarily agreed to refer the matter to an independent retired judge for inquiry in accordance with principles of natural justice, the report and findings of such inquiry cannot be impeached on the ground that it overrides the judgment of the courts, as the parties have consensually submitted the dispute to this alternative process.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1

NON-REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL No(s). 7421 OF 2018 (Arising out of SLP(C)No.22402 of 2014)

TAMIL NADU CHAMBER OF COMMERCE AND INDUSTRY REPRESENTED THR. ITS HONY. SECRETARY AND ANR. Appellant(s)

VERSUS

P MAHENDRAVEL AND ORS. Respondent(s)

J U D G M E N T

KURIAN, J.

Leave granted.

(2) The crucial issue raised in this appeal pertains to the

steps taken by the appellant-Association for expulsion of

certain members from its membership.

(3) The aggrieved respondents had taken up the matter before

the civil court which went in their favour. This order was

challenged before the First Appellate Court as well as before

the High Court and both orders are in favour of the

respondents; and thus appellant-Association is before this

Court.

(4) Signature Not Verified The categorical finding in all the judgments is that steps Digitally signed by MAHABIR SINGH Date: 2018.08.03

taken by the appellant-Association for expulsion of its members 16:59:15 IST Reason:

were in violation of the principles of natural justice. There

is also a contention on jurisdiction.

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(5) When the matter came up for hearing before this Court on

14th July, 2017, the following order was passed :

“Learned senior counsel appearing for the petitioners submits that the issue regarding the expulsion can be decided by a retired District Judge, in case the opposite side also agrees. The respondents are directed to get instruction on the above submission.

List on 24.07.2017.”

(6) On 24th July, 2017, the Court passed the following order:

“When this matter came up before this Court, on 14.07.2017, this Court passed the following order:-

“Learned senior counsel appearing for the petitioners submits that the issue regarding the expulsion can be decided by a retired District Judge, in case the opposite side also agrees.

The respondents are directed to get instruction on the above submission. List on 24.07.2017.”

Learned counsel on both sides submit that a former Judge of the High Court would be better in the fitness of things.

Therefore, we appoint Hon'ble Mr. Justice A.R. Ramalingam, Former Judge of the High Court of Madras for the purpose.

We leave it to the Hon'ble Judge to fix his remuneration. The expenses and the remuneration will be shared by the petitioners and the respondents in the proportion of 67:33 per cent.

The expelled members will file their reply to the show cause notice dated 5.3.2009, within four weeks.

The Hon'ble Judge is requested to send a Report within four months thereafter.

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List after five months.”

(7) Hon’ble Mr. Justice AR Ramalingam, Former Judge of the

High Court of Madras, has accordingly conducted an inquiry and

submitted a report to this Court. We do not propose to go into

the merits of the said Report. In case the respondents are

of the view that the said Report is otherwise faulty, it is for

them to pursue their remedies in appropriate proceedings before

the appropriate forum.

(8) However, we hasten to make it clear that the objection

that the said Report cannot override the judgment of the

court(s), cannot be appreciated since all the parties

voluntarily agreed to refer the dispute to Hon’ble judge for an

appropriate inquiry after complying with the principles of

natural justice.

(9) We also make it clear that this judgment shall not stand

in the way of the respondents otherwise taking appropriate

recourse open to the respondents under the law for membership

in the appellant-Association.

(10) It will also be open to the respondents to offer an

unconditional apology for whatever inappropriate conduct on

their part and seek membership in the appellant-Association in

which case we are sure that the appellant-Association will

magnanimously consider their applications. 4

(11) We further make it clear that we have otherwise considered

the matter on merits.

(12) The appeal is accordingly disposed of.

..........................J. (KURIAN JOSEPH)

..........................J. (SANJAY KISHAN KAUL) NEW DELHI, AUGUST 1, 2018.

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