In a landmark decision, the Supreme Court has resolved a contentious interpretation of the Tamil Nadu Societies Registration Act, 1975, paving the way for societies to merge without requiring identical objectives or prior approval from the District Registrar.
The ruling arose from an appeal challenging the Madras High Court’s endorsement of the Inspector General of Registration’s decision to reject an amalgamation. The rejection was based on two primary grounds: the absence of prior approval from the District Registrar and the differing objectives of the societies involved.
Addressing these issues, the Supreme Court bench, comprising Justices Vikram Nath, Sanjay Karol, and Sandeep Mehta, provided clarity on Section 30 of the Act. The Court emphatically stated that neither prior approval from the District Registrar nor uniformity in objectives between merging societies is mandated by law.
“The interpretation that prior approval of the District Registrar is required before passing the Special Resolution would be an incorrect interpretation of the said provision,” the Court noted. It further clarified, “There is no statutory bar or pre-condition for amalgamation that the two societies must have the same objectives.”
In a decisive move, the Court overturned the orders issued by the Single Judge, Division Bench, and Inspector General of Registration, reinstating the District Registrar’s earlier approval of the amalgamation.
This judgment is expected to significantly ease procedural hurdles for societies seeking to merge under Tamil Nadu law, setting a precedent for a more liberal interpretation of statutory provisions governing such amalgamations.
