A Supreme Court division bench comprised of Justices MR Shah and MM Sundresh recently overturned a Calcutta High Court decision that quashed the election of the Institute of Company Secretaries of India's Eastern India Regional Council office bearers.The court further observed that "The High Court seriously erred in setting aside the election on the ground that the meeting was not presided over by the Vice Chairman."

The bench noted that the High Court had relied on Regulation 92(2) of the Company Secretaries Regulations, 1982, to hold that the meeting should have been presided over by the Vice Chairman. Referring to the aforementioned regulation as well as regulation 117(2), the bench stated that Regulation 92(2) shall apply only in the case of absence and not in the case where the position of chairman and/or office bearer has become vacant.

"There is a distinction between the absence and the post fallen vacant. Regulation 92(2) shall be applicable in a case where the Chairman and/or the office bearer though is not disqualified but is absent for some reason. Regulation 117(2) shall be applicable in a case where the elected member of the Regional Council has been disqualified on he being found guilty of any professional or other misconduct and awarded penalty of fine. Therefore, in case of a vacation of office as per Regulation 117(2), such post fallen vacant is required to be filled in by election by electing another person from amongst its members to hold the office for the remaining period of a year (Regulation 119(2))

The bench further allowing the appeal noted that "The High Court ought not to have entertained the writ petition challenging the validity of the election. Even otherwise, it is required to be noted that even as per Regulation 114(4), the election can be challenged by the candidate concerned. In the present case respondent no.1 who challenged the election of the office bearers did not even contest the election. Under the circumstances the High Court erred in entertaining the writ petition challenging the election at the instance of the respondent no.1 who even did not contest the election of the office bearers",

Case Details

Institute Of Company Secretaries of India vs Biman Debnath

CA 8039 OF 2022 

Read the complete judgment on the following link:-

https://main.sci.gov.in/supremecourt/2022/14180/14180_2022_6_1502_39492_Judgement_07-Nov-2022.pdf