Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2016 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 1264 - HC - Indian LawsAdjudication of present appeal is that Human Care Medical Charitable Trust is a Society registered under the Societies Registration Act, 1860 - cancellation of lease deed - cancellation of allotment of land - lease deed cancelled alleging breach of a condition of the lease, in that, (office-bearers) of society having sold the demise land to a third party in a clandestine manner in order to earn profit out of a concessional allotment obtained in the name of the society. HELD THAT:- It is evident that learned senior counsel for appellant DDA wants us to apply the principle of 'tracing' to conclude that the consideration (money) for sale of land in question had flown into the coffers of Mr.Naresh Chandra, the President of society at the time of execution of the lease-deed dated June 11, 1996. In essence, learned senior counsel for appellant had argued that on applying principle of tracing, the position which would emerge is that when so-called loan advanced by the newly inducted members of the society is traced, the trail would end in the coffers of Mr.Naresh Chandra and his family members, which in turn would show the so-called loan was merely a camouflage but in reality consideration paid by newly inducted members to Mr.Naresh Chandra towards sale of land in question. Has DDA been able to establish that trail of loan advanced by newly inducted members of the society ends in hands of Mr.Naresh Chandra and his family members? - HELD THAT:- The answer is no - No material whatsoever has been placed on record by DDA to show that the loan advanced by the newly inducted members of the society ended in the hands of Mr.Naresh Chandra and his family members. Particular emphasis was placed upon balance sheets of the society by learned senior counsel for DDA to show the end of the trail of money (loan) in the hands of Mr.Naresh Chandra and his family members. However, the balance sheets of society do not help the cause of DDA, for the balance sheets merely show various sum(s) were advanced by newly inducted members of the society viz. Mr.Sanjay Khurana and other NRIs to the society from time to time. But the trail of money gets cold here. There is no material to show that said sum(s) advanced by newly inducted members of society to the society reached the hands of Mr.Naresh Chandra and/or his family members. Such being the factual position, the irresistible conclusion which emerges is that appellant DDA failed to justify its action of cancelling the allotment of land in question in favour of the society. The legal principles which we have succinctly culled out from the impugned judgment are correct. A society is distinct from its members. If a person gives money to a society by way of a donation or even a loan and is inducted as a member of the society does not mean that the members of the society who were managing the society when the society acquired an asset have sold that asset to the person who after giving donation is inducted as a member in the society - An allegation that this is a camouflage for sale of the asset of the society would require proof of money reaching the coffers of the members who walk out. Appeal dismissed.
|