SYNOPSIS & LIST OF DATES & EVENTS

 

Through the present appeal, appellant is seeking the setting aside of the order dated __________ passed by Ld. Single Judge of this Hon’ble Court in a writ petition, where in appellant has sought the quashing of election rules dated _________ adopted by the respondent no.1 along with the public notice dated __________ issued by the respondent no.1 and to further to appoint and independent government official to conduct the elections of the members of the executive committee in a fair and a transparent manner.

The Appellant impugns the election rules for the nomination of the executive committee members adopted by the Apparel Export Promotion Council vide its annual general meeting dated __________ (hereinafter referred to as “the rules”) along with the subsequent public notice dated __________ (hereinafter referred to as the “notice”) as both the rules as well as the notice are contrary to the amended provisions of Section 160 of the Companies Act, 1956 (hereinafter as “the act”) read in light of the notification bearing no. G.S.R. 466 (E) dated ____________ issued by the Ministry of Corporate Affairs (hereinafter “the notification”).

The Apparel Export Promotion Council (hereinafter as the Respondent no.1) is a registered company under the Section 8 of the Companies Act, 2013 (erstwhile section 25 of the Companies Act, 1956). The main aim of the respondent no.1 was to undertake export promotion measures, to give assistance to all the members in a fair and sensitive manner, to make action plans for the promotion of exports, development of export markets, etc. However contrary to the aims and objectives of the respondent no.1, the respondent no.1 is not only acting contrary to the mandate of Section 160 of the act but also the election rules adopted by the respondent no.1 vide the decisions taken in the 236th executive committee meeting of AEPC at Gurgaon, Haryana, on ____________ are woven with the threads of arbitrariness, unreasonableness and conflict of interest.

The election rules as well as the public notice issued by the Respondent no.1 require deposit of Rs ____________ /-(One Lakh) as a pre-requisite to apply for nomination in the election of the executive committee of the Respondent no.1. Further, in a case where the applicant does not get elected or in case the applicant member is not able to garner 25 per cent of the total votes polled; the pre-deposited amount of Rs_________/- shall be forfeited.

The election rules as well as the notice are based upon the pre-amended section 160 of the act. The statutory language of Section 160 of the act as modified by the notification-dated 05.06.2015 unequivocally clarifies that the mandatory deposit of Rs ____________/- under section 160 of the act shall not be applicable upon the companies registered under the Section 8 of the act (erstwhile section 25 of the act). Evidently, in spite of categorical, unequivocal and unambiguous modification in the statutory language of section 160 of the act read along with the notification; the aforesaid requirement of depositing Rs ___________/- as a pre-condition has been adopted by the respondent no.1 for elections at its annual general meeting (AGM), as latest as on ________ in its 236th executive committee meeting by installing the same in its election rules. The aforesaid unscrupulous activity of the respondent no.1 came in to the public domain vide public notice dated __________ only. It is interesting to note that the elections rules were adopted on __________ and the public notice was issued on ___________ i.e. more than six months after the notification clarifying the applicability of Section 160 over the companies registered under section 8 of the act had been released by the Respondent no.4.

Therefore, the usage of the provisions of the un-amended Section 160 of the act hints at ulterior motives of the respondent no.1. It is trite to mention that the aforesaid pre-condition of deposit of Rs __________/- as an eligibility criterion to apply for nomination for the executive committee membership refrains the eligible and interested members from giving their nomination, as there is inherent fear of losing Rs _________/-. Such modus-operandi has been adopted to discourage any potential competition from the eligible list of members who may want to apply for the nomination in the executive committee of the respondent no.1 and the appellant is certainly included in the list of such potential contenders. Therefore, the election rules as well as the public notice are liable to be quashed on this ground alone.

It is further submitted that the respondent no.1 though claims to have introduced a transparent electronic voting system (EVS) for the forthcoming executive committee elections at its AGM scheduled on _____________; but a bare perusal of the provisions enshrined in the election rules would make it clear that the electronic voting system (EVS) has been incorporated only in letter to dodge the authorities for staking its claim to continue as RCMC registering authority beyond __________ for apparel exporters and enjoying government grants from Ministry of Commerce and Ministry of Textiles; and most certainly not in the spirit at all.

The respondent no.1 has incorporated the execution of electronic voting system (EVS) in two ways i.e., – a). Remote electronic voting for the members who could not be present in person at the venue of general voting and b). Electronic voting by the members in person or through proxy at the venue of the annual general meeting.

In the scheme of remote e-voting, the members who cannot personally come to the venue of annual general voting have the leverage to vote electronically in a flexi-location and flexi-timing manner by using specific username and password allotted to them from any place, where they have access to an internet connection and these are expected to be IP mapped as well. The whole purpose of the introduction of remote e-voting was that the members who could not be present in person at the venue of general meeting would still have the opportunity to electronically vote from the any place, where they have an access to the internet connection.  In light of such facility given to the members, it is untenable as to why the election rules still provide for the provision of voting through proxy at the venue of general voting.

That election rules are further shrouded in mystery as they allow the voting of members at the general meeting through proxy but miserably fail to stipulate any proxy form/ mechanism so as to align the same vis-à-vis the electronic voting system (EVS). The election rules are completely devoid of any proxy form or any mechanism so as to synchronize the mechanism of proxy voting with the electronic voting. Therefor in vacuum of such procedure/mechanism; it is incomprehensible as to how the proxy shall register and vote on behalf of the member.

The clause 27(d) of the election rules read with the definition of Scrutinizer in clause 2 of the election rules adopted by the respondent no.1 has given the responsibility of conducting the elections in a fair and transparent manner to the Scrutinizer. However, it is incomprehensible as to how the Scrutinizer can act in a transparent manner in case the executive committee of the respondent no.1 directly controls the appointment of the Scrutinizer. The election rules are completely oblivious of this fact that there is a direct conflict of interest, as the executive committee has a direct role in the appointment of the Scrutinizer.

The Scrutinizer who is portrayed as an embodiment of transparency and fairness is completely divested of its from its power to decide any objection pertaining to the counting of votes, power to accept/reject any vote even in cases where he finds suspicious voting. The Scrutinizer further has no power to even know, whether the votes cast through electronic voting have been cast through members or their proxy. In light of the aforesaid, it is incomprehensible as to how the Scrutinizer shall be able to conduct the elections in a free, fair and transparent manner. Interestingly, the Chairman, AEPC vide clause 25, clause 26(b) and clause 27(e) of the election rules, has been has been made the final authority to decide, to accept/reject the vote, to decide the objection while counting of the votes, who is an interested party and therefore there is direct conflict of interests. Further blanket powers have been given to the Chairman of the Council to accept/reject the vote and such unbridled discretionary powers have been made unchallengeable. Further no rules have been laid down as to when and in what circumstances the Chairman can accept/reject vote. Also, the clause 27(e) of the election rules makes the Chairman as the final adjudicating authority to decide any disputes pertaining to the rules of election. In lieu of the above, it can be clearly asserted that the election rules as well as the subsequent public notice are woven with the threads of arbitrariness, unreasonableness and in a crafty manner to serve the vested interests of select few members at the helm of affairs presently.

Therefore, it is humbly submitted that election rules and the public notice issued by Respondent No.1 along with the bare patent illegality as they impose an illegal as well as an arbitrary financial burden of depositing Rs. _____________/- (One Lakh only) by any interested member for contesting elections which is not only an undesirable barrier for newcomers but also ultra vires the section 160 of the act read with the notification. Hence, both the election rules as well as the Public notice given in consequence are liable to be struck down. In light of such glaring illegalities and irregularities, it is pertinent that the election be conducted under the supervision and guidance of an independent government body / officials and only after rectifying the inherent incongruities and biased election rules.

However, the Hon’ble Single Judge vide order dated ____________ pleased to dismiss the petition, which is impugned in this appeal.

 

LIST OF DATES & EVENTS :-

 

_________          :       That Respondent No.1 was incorporated under section 8 of the act (erstwhile Section 25 of the act). The main purpose for which the respondent no.1 was incorporated was to undertake export promotion measures, to give assistance to all the members in a fair and sensitive manner, to make action plans for the promotion of exports, development of export markets, etc.

____                 :       That the Central Government vide its power issued a notification bearing no.  S.O. 902(E) dated _________ notified Section 160 of the companies act. The provision of this section statutorily required a pre-deposit of Rs 1,00,000/- in case any person or member wants to applies for nomination to become director of the company.

 

__________:        The Ministry of Corporate Affairs (hereinafter referred to as (“the respondent no.4”) published a notification bearing no. G.S.R. 466(E) which unequivocally exempted all the companies registered under section 8 of the act from the application of the statutory requirement stipulated under section 160 of the act. Therefore,  a clear and unambiguous outcome of this notification was that the section 8 companies were not required to insist on a pre-deposit of Rs. __________/-  as a pre-condition, while giving name for nomination.

 

_________           :       The  respondent no.1 vide its  236th meeting of the Executive Committee framed and approved the impugned Election Rules. The framed Election Rules include the modalities, procedures and rules of the election of Executive Committee of Respondent No.1. A bare perusal of the election rules would show that the election rules have been framed arte not only ultra vires Section 160 of the act but also the procedure and mechanism guiding the election of the executive committee is arbitrary and unreasonable.

 

__________         :       That Respondent no.1 (Company) issued a public notice bearing no. COORD/XII/2015 (hereinafter referred to as the notice”) in pursuance of the abovestated Election Rules, whereby the modalities, process and date and venue of elections to Executive Committee were stated. The notice requires a pre-deposit of Rs_________/- (________) as a pre-requisite for filing of nominations by interested members. The aforesaid demand is ultravirys to the amended/modified Section 160 of the act. Therefore, the public notice dated __________ is liable to be quashed. 

 

______              :       Thereafter appellant has filed the Writ Petition (Civil) bearing No. _______/2015 for quashing of election rules dated _______ adopted by the respondent no.1 along with the public notice dated __________ issued by the respondent no.1 and to further to appoint and independent government official to conduct the elections of the members of the executive committee in a fair and a transparent manner.

 

_______             :       Impugned order dated _________ passed by the Ld. Single Bench of this Hon’ble Court in Writ Petition (Civil) No. _____/2015 thereby dismissing the petition on the ground that the appellant has no cause of action to challenge the rule supra.

 

__.05.2016       :       Hence, the present Letters Patent Appeal.

IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

__________________________________           : APPELLANT

VERSUS

________________                                     : RESPONDENTS

 

I N D E X

                                                                                  

S.NO.              PARTICULARS                       PAGES    

A –

B –

C –

D –

 

 

1 –

 

 

 

 

 

 


1.      Notice of Motion                                         

2.      Urgent Application                             

3.      Memo of Parties                                          

4.      List of Dates & Events.                      

5.      Certificate.

6.      Appeal under Clause 10 of the Letters Patent Against the Order Dated ________ passed by the Hon’ble High Court of Delhi in Writ Petition (C) No. ______ of 2015. Supporting Affidavit.

 

7.      Impugned Order dated _____ passed by Hon’ble High Court of Delhi in Writ Petition (C) no._________ of 2015.

 

8.      ANNEXURE A-1

Copy of the Certificate of Incorporation of Respondent No.1

 

9.      ANNEXURE A-2

Memorandum of Association and Article of Association of Respondent No.1

 

10.    ANNEXURE A-3

Copy of the notification of Ministry of Corporate Affairs bearing no. G.S.R. 466(E) dated _____________

 

11.    ANNEXURE A-4

Copy of the Election Rules- For Election of Executive Committee Members of Respondent No.1 as framed and passed by the Executive Committee on ____________

 

12.    ANNEXURE A-5

Copy of the Public Notice dated _______________ published by Respondent No.1 intimating the time, details and modalities of election to the Executive Committee of the respondent-company.

 

13.    ANNEXURE A-6.

         Copy of Writ Petition (C) No. ________ of 2015 filed by the appellant.

 

14.    Application Under Section 151 of C.P.C. for stay alongwith affidavit.

 

15.    Application under Section 151 of CPC for Exemption from filing certified copies and dim Annexures alongwith supporting affidavit.

 

16.    Vakaltnama.

----------------------------------------------------------------------

 

 

DELHI                                                                  FILED BY

DATED

_____________________

(ADVOCATES)

___________________,

New Delhi-110013.

Mob.No._____________


IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

________________________________              : APPELLANT

VERSUS

__________________                                  : RESPONDENTS

 

URGENT APPLICATION

 

TO,

 

The Registrar,

Delhi High Court,

New Delhi

 

 

Sir,

 

Would you kindly treat the accompanying Petition as urgent one as the High Court rules and regulations: the Ground of urgency are :-

 

May kindly be pleased to set aside the impugned order dated ______________ passed by this Hon’ble Court in W.P. (C) No. ________ of 2015.

Thanking you,

DELHI                                                          APPELLANT

THROUGH

DATED

________________________

(ADVOCATES)

________________


IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

_________________________________            : APPELLANT

VERSUS

________________                                     : RESPONDENTS

 

NOTICE OF MOTION

 

TO,

 

_______________

_______________

_______________

 

 

Sir,

 

         Kindly take note that the abovementioned LPA is being filed before Delhi High Court and the same is likely to be listed on ___, May, 2016 or thereafter.  A copy of the LPA alongwith the Applications and the Annexures is being supplied along with this letter.

Thanking you,

DELHI                                                          APPELLANT

THROUGH

DATED

____________________

(ADVOCATES)

__________________

 

 

IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

_____________________________________              : APPELLANT

VERSUS

__________________                                  : RESPONDENTS

MEMO OF PARTIES

 

___________________________                        : APPELLANT

VERSUS

1. ____________________________________________________

______________________                          : RESPONDENT No.1

2. _________________________                : RESPONDENT NO.2

3. ______________                                  : RESPONDENT No.3

4. _____________________                     : RESPONDENT NO.4

---------------------------------------------------------------------------

 

DELHI                                                          APPELLANT

THROUGH

DATED

________________

(ADVOCATES)

_____________


IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

________________________________              : APPELLANT

VERSUS

__________________                                  : RESPONDENTS

 

CERTIFICATE

 

It is certified that all the papers qua Writ Petition (C) No.11201 of 2015 filed before the Single Bench have been annexed to this appeal and no other documents other than from the record of the appellant and Writ Petition (C) No.11201/2015 have been filed in this appeal.

 

Place : New Delhi.

Filed on :          

APPELLANT

THROUGH

 

_____________________

ADVOCATES   

_______________________,

New Delhi-110013.


 

IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

______________________                             : APPELLANT

VERSUS

1. ________________________________________________

___________________                   : RESPONDENT No.1

 

2. ___________________                     : RESPONDENT NO.2

 

3. __________________                         : RESPONDENT No.3

 

4. __________________                      : RESPONDENT NO.4

 

AN APPEAL UNDER CLAUSE 10 OF THE LETTERS PATENT AGAINST THE ORDER DATED _________ PASSED BY THE HON’BLE HIGH COURT OF DELHI IN WRIT PETITION (CIVIL) NO. ______OF 2015.

TO,

HON’BLE THE CHIEF JUSTICE OF THE HIGH COURT OF DELHI AND HIS COMPANION JUDGES OF THE HIGH COURT OF DELHI,                            

The humble appeal of the

Appellants above named,

 

MOST RESPECTFULLY SHOWETH: -

 

1.      The Appellant by way of the present appeal seeks to challenge the order dated ________ passed by the Ld. Single Judge of High Court of Delhi in Writ Petition (Civil) No. ______  of 2015 whereby Ld. Single Judge, was pleased to dismiss the petition on the ground that appellant has no cause of action to challenge the rule supra, which is impugned in this petition.

 

2.      That by way of the impugned order, the Ld. Single Judge has rejected the contention of the Appellant without considering it as raised by the Appellant for quashing of election rules dated ____________ adopted by the respondent no.1 along with the public notice dated _________ issued by the respondent no.1 whereby in spite of categorical and unequivocal amendment / modification of Section 160 of the act vide notification dated ________ that the pre-condition of deposit of Rs._________/- for filing application of nomination of members is not applicable over the companies registered under section 8 of the act; the respondent no.1 has mandated the  deposit of Rs ______/- as a pre-requisite for filing nomination by members for the elections of the executive committee. The Respondent has adopted the aforesaid illegal condition vide election rules dated __________ and has also issued the same vide public notice dated ________.

 

3.      That the facts leading to the filing of the present appeal are set out hereunder in brief:-

 

3.1      That Respondent No.1 was incorporated under section 8 of the Companies Act, 2013 (erstwhile Section 25 of the Companies Act, 1956). The main aim of the respondent no.1 was to undertake export promotion measures, to give assistance to all the members in a fair and sensitive manner, to make action plans for the promotion of exports, development of export markets, etc. However contrary to the aims and objectives of the respondent no.1, the respondent no.1 is not only acting contrary to the mandate of Section 160 of the act but also the election rules adopted by the respondent no.1 vide its 236th meeting of the executive committee at Gurgaon, Haryana, on __________ are woven with the threads of arbitrarinss, unreasonableness and conflict of interests.

The copy of the incorporation certificate and articles of association and memorandum of association are attached hereto and annexed herewith as Annexure A-1 & Annexure A-2

 

3.2      The respondent no.1 for long has been carrying out illegal activities contrary to the  objects for which it was established. In the past the respondent no.1 has been conducting its elections of the executive committee members in reprehensible manner. Various writ petitions in the past have been filed  against the respondent no.1 challenging the mode and unfair manner in which the respondent no.1 conducts the elections. However, in the present petition the subject matter of the controversy pertains to the election rules dated ______________ and public notice dated __________  issued subsequent to Respondent no.1’s 236th executive committee meeting dated ________, whereby not only illegal demand of Rs _________/- as a pre-requisite to file nomination for the election of the executive committee at its next AGM scheduled on __________, had been made but also the provisions of the election rules guiding the manner and conduct of the elections is highly questionable.

The copy of the notification bearing no. G.S.R. 466 (E) dated ________ issued by the Respondent no.4 is annexed herewith and attached hereto as Annexure A-3

 

3.3    The respondent no.1 vide its 236th meeting of the Executive Committee framed and approved the impugned Election Rules. The framed Election Rules include the modalities, procedures and rules of the election of Executive Committee of Respondent No.1. A bare perusal of the election rules would show that the election rules have been framed, are not only ultra vires Section 160 of the act but also the procedure and mechanism guiding the election of the executive committee is arbitrary and unreasonable. Some of the glaring instances of arbitrariness and unreasonableness inter-alia includes:

a).     Illegal and arbitrary requirement mandating pre-deposit of Rs ____________/- as pre-condition to apply for nomination for the membership of executive committee:

i.            That in spite of categorical amendment / modification in the section 160 of the act vide the notification to the effect that statutory pre-deposit of Rs _________/- shall not apply in the case of companies registered under section 8 of the act; the election rules as well as the public notice mandates the requirement of pre,-deposit of Rs _________/- as a pre-condition to apply for the membership of the executive committee. Such an illegal and arbitrary act is borne out of evil motives of the executive committee with intent to shun out maximum competition at the preliminary stage of application itself.

ii.          That the aforesaid act of respondent cannot be even considered as bonafide mistake as prior to the adoption and release of the election rules; the respondent no.1 mandatory consults the company secretary as well as the legal advisor before formulating election rules. Also, there are chartered accountants as well as full time legal advisors on the panel of respondent no.1. Therefore, in such case, the respondent no.1’s insistence upon pre-deposit of Rs _________/- hints only at malafide intent of the executive committee.

b).    Application of electronic voting only in letter and not in spirit:

The respondent no.1 has introduced the scheme of electronic voting to give an impression as if the respondent no.1 intends to conduct the elections of the executive committee in a fair and reasonable manner. However, to the contrary, a bare perusal of the election rules as well as the public notice show the extent of illegality, arbitrariness and unreasonableness. Some of the glaring instances are as follows:

i.            There is no prescribed procedure or mechanism installed in the rules which clarifies the mechanism in which the proxy shall vote on behalf of the members. No proxy form has been released along with the election rules and election rules don’t even whisper as to how the proxy shall vote on behalf of the member in electronic voting at the general meeting. In the absence of any pre determined procedure or mechanism aligned with the scheme of electronic voting. In lieu of the above, it is likely that the executive committee may entertain the manual entries of the proxy persons at the time of annual general meeting. In such case, the whole election albeit conducted through electronic voting system (EVS) shall be jeopardized.

ii.          The election rules had categorically introduced the concept of remote electronic voting mainly for the reason that in cases where the members are not able to remain present in person at the general meeting; the members have an alternative approach to cast their vote electronically on the basis of secured username and password. The rationale of remote electronic voting was to curb the menace caused by the voting through proxy. However, in spite of having the facility of remote electronic voting, the election rules retain the voting through proxy.

c).     Role and powers of Scrutinizer is hugely jeopardized.

As per the election rules, the Scrutinizer had been appointed to conduct the elections in a free, fair and a transparent manner. However, on a bare perusal of the election rules, it is crystal clear that the Scrutinizer effectively does not have any power to ensure transparency and fairness in the conduct of the elections. The reasons inter-alia includes:

i.            The key powers such as taking decisions pertaining to the objection to the counting of votes, to decide whether to declare a vote valid or invalid ought to have been conferred to the Scrutinizer only. On the contrary, all such key powers have been conferred exclusively on the Chairman, AEPC only, despite him being an interested party and thus having a direct conflict of interests.

ii.          The role of Scrutinizer is limited only for mere tabulation of the votes casted by the members. It is submitted that Scrutinizer ought to have been given independent powers for it to effectively function as a successful watchdog for the elections of the members to the executive committee.

iii.        The Scrutinizer as per clause- 27 (d) of the election rules has to be appointed by the executive committee. In such case, the Scrutinizer owes its allegiance to the executive committee appointing it. Therefore, the appointment of the Scrutinizer ought to be an independent function exclusively in domain of the government of India. The Scrutinizer ought to be a person fluent in the electronic mechanisms and procedures so that the Scrutinizer could effectively check upon any lapse/malafide in the electronic voting process.

d).    Glaring instance of conflict of interest, arbitrariness and unreasonableness. Widespread in the election rules:

i.   The powers conferred upon the Chairman are wide and discretionary. For instance, the clause 26(b) of the election rules gives blanket powers to the Chairman to accept or reject vote. No grounds on the basis of which the Chairman can reject votes are mentioned. Also, the clause 25(e) of the election rules further gives the discretion to the chairman to decide about the acceptance/rejection of objection pertaining to the counting of votes. It is incomprehensible as to why the Chairman, AEPC is accorded with such blanket powers and how could this ensure free and fair elections. Such powers ought to have been conferred upon the independent and unbiased scrutinizers and not the Chairman, AEPC. 

ii.  Further, it is incomprehensible as to why the Chairman, AEPC has been given a final say to decide the admissibility and non-admissibility of votes, when an independent Scrutinizer has to be appointed to conduct the elections under EVS in a fair and a transparent manner. In fact clause 27(l) confers authority upon the Chairman to decide any dispute pertaining to the interpretation of the election rules. The aforesaid blanket powers conferred upon the Chairman, AEPC not only have the potential to create serious conflict of interests but also likely to create prejudice and negative bias for others when he himself along with his colleagues are contenders. Further, this practice shall also seriously jeopardize the fairness and transparency in the process of elections.

The copy of the election rules adopted by the respondent no.1 during its annual general meeting dated ________ are attached hereto and annexed herewith as Annexure A-4.

 

3.4      That Respondent no.1 thereafter vide a public notice dated _________ bearing no. _____/_____/2015 (hereinafter referred to as the notice”) in pursuance of the abovestated Election Rules, whereby the modalities, process and date and venue of elections to Executive Committee were stated. The notice requires a pre-deposit of Rs. __________/- (________ Only) as a pre-requisite for filing of nominations by interested members. That the last date for giving the name for nomination of executive committee members is _________. The aforesaid demand as a pre-requisite to give the name for nomination of executive committee members is ultravires to the amended/modified Section 160 of the act. Therefore, the public notice dated _______ is liable to be quashed. 

The copy of the public notice issued by the respondent no.1 is attached hereto and annexed herewith as Annexure A-5.

 

4.      Feeling aggrieved, appellant filed the Writ Petition (Civil) before the this Hon’ble Court against the respondents for quashing of election rules dated _______ adopted by the respondent no.1 along with the public notice dated __________ issued by the respondent no.1 and to further to appoint and independent government official to conduct the elections of the members of the executive committee in a fair and a transparent manner.

The copy of the Writ Petition (Civil) No. ________ of 2015 filed by the appellant is attached hereto and annexed herewith as Annexure A-6.

 

5.      That Ld. Single Judge after going through the entire material and arguments, pleased to dismiss the petition with the ground that the appellant is not entitled to any relief from this Hon’ble Court vide order dated ________.

6.      Being aggrieved by the impugned order dated _________ passed by the Learned Single Judge on the following grounds, amongst others:-

 

- : G R O U N D S : -

 

A.          That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that as per articles 26 of Constitution of India envisages grants right to establish and maintain institution for religious for charitable purposes.

 

B.     That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that the impugned election rules as well as public notice raise an illegal and arbitrary requirement mandating pre-deposit of Rs ______/- as pre-condition to apply for nomination for the membership of executive committee. The aforesaid demand is ultra vires to Section 160 of the act as in spite of categorical amendment/modification in the section 160 of the act vide the notification to the effect that statutory pre-deposit of Rs _________/- shall not apply in the case of companies registered under section 8 of the Companies Act, 2013; the election rules as well as the public notice mandates the requirement of pre -deposit of Rs ________/- as a pre-condition to apply for the membership of the executive committee. Such an illegal and arbitrary act is borne out of evil motives of the executive committee with intent to discourage maximum competition from potential at the preliminary stage of application itself.

That the aforesaid act of the respondent no.1 cannot be even considered as bonafide mistake as prior to the adoption and release of the election rules; the respondent no.1 mandatory consults the company secretary as well as the legal advisor before formulating election. Also, there are chartered accountants as well as full time legal advisors on the panel of respondent no.1. Therefore, in such case, the respondent no.1’s insistence upon pre-deposit of Rs _______/- hints only at malafide intent of the executive committee

 

C.     That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that the election rules have adopted the scheme of electronic voting only in letter and not in spirit. That respondent no.1 has introduced the scheme of electronic voting to give an impression as if the respondent no.1 intends to conduct the elections of the executive committee in a fair and reasonable manner. However, to the contrary, a bare perusal of the election rules as well as the public notice show the  extent of illegality, arbitrariness and unreasonableness.

 

D.     That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that there is no prescribed procedure or mechanism installed in the election rules, which clarifies the mechanism in which the proxy shall vote on behalf of the members. No proxy form has been released along with the election rules and the rules don’t even whisper as to how the proxy shall vote on behalf of the member in electronic voting at the general meeting. In the absence of any pre determined procedure or mechanism aligned with the scheme of electronic voting. I, it is likely that the executive committee may entertain the manual entries of the proxy persons at the time of annual general meeting. In such case, the whole spirit of electronic voting shall be jeopardized.

 

E.     That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that once the election rules have prescribed the provision of remote electronic voting; there is no rationale to introduce the concept of vote through proxy. The election rules had categorically introduced the concept of remote electronic voting mainly for the reason that in cases where the members are not able to remain present in person at the general meeting; the members have an alternative approach to cast their vote electronically on the basis of secured username and password. The rationale of remote electronic voting was to curb the menace caused by the voting through proxy. However, in spite of having the facility of remote electronic voting, the election rules retain the voting through proxy.

 

F.     That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that the election rules are completely devoid of the existence of an independent body/person to manage and conduct the elections of the members of the executive committee in a transparent and a fair manner. The respondent no.1 has very cunningly portrayed that the respondent no.1 has appointed Scrutinizer to conduct the elections in a fair and a transparent manner. However, on a bare perusal of the election rules, it is crystal clear that the Scrutinizer effectively does not have any power to ensure transparency and fairness in the conduct of the elections. The key powers such as taking decisions pertaining to the objection to the counting of votes, to decide whether to declare a vote valid or invalid have been conferred to the Chairman, instead of the Scrutinizer.

 

G.     That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that the role of Scrutinizer is limited only for mere tabulation of the votes casted by the members. It is submitted that Scrutinizer ought to have been given independent powers for it to effectively function as a successful watchdog for the elections of the members to the executive committee.  Further, the Scrutinizer as per clause- 27 (d) of the election rules has to be appointed by the executive committee. In such case, the Scrutinizer owes its allegiance to the executive committee appointing it. Therefore, the appointment of the Scrutinizer ought to be an independent function exclusively in domain of the government of India.

 

H.     That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that the appointment of Scrutinizer ought to be a person fluent in the electronic mechanisms and procedures so that the Scrutinizer could effectively check upon any lapse/malafide in the electronic voting process. However, in the instant case, the Scrutinizer is not at all expert in the mechanism and procedures.

I.      That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that there are glaring instance of conflict of interest, arbitrariness and unreasonableness profusely woven in the election rules. The powers conferred upon the Chairman are wide and discretionary. For instance, the clause 26(b) of the election rules gives blanket powers to the Chairman, AEPC to accept or reject vote. No grounds on the basis of which the Chairman, AEPC can reject votes are mentioned. Also, the clause 25(e) of the election rules further gives the discretion to the Chairman, AEPC to decide about the acceptance / rejection of objection pertaining to the counting of votes. It is incomprehensible as to why the Chairman is accorded with such blanket powers. Such powers ought to have been conferred upon the scrutinizers and not the Chairman. 

 

J.      That the Ld. Single Judge of this Hon’ble Court has failed to appreciate that the Chairman has been given a final say do decide the admissibility and non-admissibility of vote, in spite of the fact that a Scrutinizer has been appointed to conduct the elections in a fair and a transparent manner. In fact clause 27(l) confers authority upon the Chairman to decide any dispute pertaining to the interpretation of the election rules. The aforesaid blanket powers conferred upon the chairman not only have the potential to create conflict of interest but also the transparency in the conduct of elections would hugely suffer.

 

K.     Because the Ld. Single Judge without appreciating the facts passed the impugned order without considering the material on record.

 

7.      That the appellant submits that they have no other equal or efficacious remedy other than to approach this Hon’ble Court by way of the present appeal.

 

8.      That the appellant has not filed any other similar appeal before this Hon’ble Court or before the Hon’ble Supreme Court challenging the impugned order dated _________ in Writ Petition (C) No. ___________ of 2015.

 

P R A Y E R

         In the light of the above-mentioned submissions it is most respectfully prayed that this Hon’ble Court may be pleased to:

 

(i)          Set aside the impugned order dated ___________ passed by the Learned Single Judge in Writ Petition (C) No. _________ of 2015 and further allow the prayer of the Writ Petition filed by the appellant bearing Writ Petition (C) No. ________ of 2015;

 

(ii)        Pass such other or further order(s) as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.

 

DELHI                                                          APPELLANT

THROUGH

DATED

 ___________________

(ADVOCATES)

F-8, Nizamuddin West,

New Delhi-110013.

 


IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

_____________________________          : APPELLANT

VERSUS

___________________                        : RESPONDENTS

AFFIDAVIT

Affidavit of Mr. ___________ about 51 years, Partner of M/s. ______________ R/o ________________110051, do hereby solemnly affirm and declare as under :-

 

1.      That I am the Partner of appellant firm and I am conversant with the facts and circumstances of the present case and as such am competent to swear this affidavit.

2.      That the submissions as to facts made in the accompanying Appeal Under Clause 10 of the Letters Patent has been drafted by my counsel as per my instructions and the facts are true and correct to my knowledge, while the legal submissions made therein are based on legal advice received and believed to be true.

3.      That the annexures annexed to the accompanying petition are true to their respective originals.

 

DEPONENT

VERIFICATION :-

         Verified at Delhi on this ____, day of May, 2016 that the contents of this affidavit are true and correct to the best of my knowledge and belief and nothing material has been concealed therefrom.

 

DEPONENT

IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

C.M. NO. _______ OF 2016.

IN

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

_________________________________    : APPELLANT

VERSUS

_________________                                   : RESPONDENTS

 

APPLICATION FOR STAY OF THE PUBLIC NOTICE DATED _____________ ISSUED BY THE RESPONDENT NO.1 AND CONSEQUENT DEADLINE FOR GIVING THE NAME FOR NOMINATIONS FOR EXECUTIVE COMMITTEE MEMBERS ALONGWITH THE DEPOSIT OF RS _____________/- TILL ________, UNDER SECTION UNDER ARTICLE 226 OF THE CONSTITUTION.

 

MOST RESPECTFULLY SHOWETH ;-

 

1.          That the Appellant filed the aforementioned appeal for setting aside the order dated ____________ passed by Ld. Single Bench of this Hon’ble Court filed by the Appellant whereby dismissed the petition bearing Writ Petition (C) No.______/2015 and the same is pending before this Hon'ble Court and the said contents of the appeal may be read as part and parcel of this application.

 

2.          That the above said petition may take some time in its disposal and till the disposal of the said petition the Hon'ble Court may be pleased to stay the application of public notice dated ___________ and consequent deadline for giving the name for nominations for executive committee members alongwith the deposit of Rs _______/-  or otherwise the Appellant shall suffer an irreparable loss and injuries which cannot be compensated in any other form.

 

3.          That the balance of convenience lies in favour of the appellant and against the respondents, moreover the appellant has suffer from huge loss if the stay is not granted in favour of the appellant till the pendency of the accompanying appeal.

 

4.          That the Appellant has good prima facia case in his favour and against the respondents and there are chances that he will definitely succeed in this case.

 

PRAYER :-

It is therefore most respectfully prayed that this Hon’ble Court may pleased to :-

 

a.      Grant and ad-interim stay the public notice dated _________ and consequent deadline for giving the name for nominations for executive committee members alongwith the deposit of Rs _______/- till __________ issued by the respondent no.1, in the interest of justice.

 

b.      Any other order / relief which this Hon’ble Court may kindly deem fit and proper under the facts and circumstances of the case and the also be passed / granted in favour of the appellant.

 

DELHI                                                          APPELLANT

THROUGH

DATED

               __________________

(ADVOCATES)

__________.


 

IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

C.M. NO. _______ OF 2016.

IN

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

_________________________________            : APPELLANT

VERSUS

___________________                                : RESPONDENTS

AFFIDAVIT

Affidavit of Mr. _________ about ___ years, Partner of M/s. _________, S/o Sh. _______, R/o J________ Delhi-110051, do hereby solemnly affirm and declare as under :-

 

1.      That I am the Partner of appellant firm and I am conversant with the facts and circumstances of the present case and as such am competent to swear this affidavit.

2.      That the submissions as to facts made in the accompanying Application Under Section 151 of CPC has been drafted by my counsel as per my instructions and the facts are true and correct to my knowledge, while the legal submissions made therein are based on legal advice received and believed to be true.

3.      That the annexures annexed to the accompanying petition are true to their respective originals.

 

DEPONENT

VERIFICATION :-

         Verified at Delhi on this ____, day of May, 2016 that the contents of this affidavit are true and correct to the best of my knowledge and belief and nothing material has been concealed therefrom.

 

DEPONENT

IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

C.M. NO. _______ OF 2016.

IN

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

_______________________________               : APPELLANT

VERSUS

_________________                                   : RESPONDENTS

 

APPLICATION UNDER SECTION 151 OF THE CODE OF CIVIL PROCEDURE FOR EXEMPTION FROM FILLING CERTIFIED COPIES OF THE ANNEXXURES, LEGIBLE COPIES OF DIM & MARGINED COPIES OF ANNEXURES.

 

MOST RESPECTFULLY SHOWETH ;-

 

1.      That the appellant has filed Annexures along with the main appeal in order to support the appeal and the Annexures filed are the true, correct and compared copies of the original.

 

2.      That due to paucity of time and urgency in the matter, the appellant is unable to file the certified copies of annexures, legible copies of dim & margined copies of annexures before this Hon’ble Court. Therefore, the appellant is seeking exemption from filing the same in the interest of justice.

 

3.      That the appellant further undertake to file the same as and when this Hon’ble Court will direct.

 

It is most respectfully prayed that this Hon’ble Court may pleased to exempt the appellant from filing certified copies of annexure, legible copies of dim & margined copies of annexures in the interest of justice.

 

DELHI                                                          APPELLANT

THROUGH

DATED

_________________

(ADVOCATES)

___________________.


IN THE HIGH COURT OF DELHI AT NEW DELHI.

 

(CIVIL APPELLATE JURISDICTION)

 

C.M. NO. _______ OF 2016.

IN

L.P.A. NO. ________ OF 2016.

 

IN THE MATTER OF :-

_______________________________               : APPELLANT

VERSUS

___________________                        : RESPONDENTS

AFFIDAVIT

Affidavit of Mr. _________ about ___ years, Partner of M/s. ________, S/o Sh. ________, R/o __________ Delhi-110051, do hereby solemnly affirm and declare as under :-

 

1.      That I am the Partner of appellant firm and I am conversant with the facts and circumstances of the present case and as such am competent to swear this affidavit.

2.      That the submissions as to facts made in the accompanying application moved Section 151 of the Code of Civil Procedure seeking exemption from filling certified copies are based on legal advice received and believed to be true.

5.          That the annexures annexed to the accompanying application are true to their respective originals.

 

DEPONENT

VERIFICATION :-

         Verified at Delhi on this ____, day of May, 2016 that the contents of this affidavit are true and correct to the best of my knowledge and belief and nothing material has been concealed therefrom.

 

DEPONEN

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