Registrar has no authority under any of the statutes and also cannot exercise any of the powers in the statute

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of Judgment: 21st May, 2021

Citation:- O.M.P.(I) 4/2021 and IA No. 5226/2021

INTRODUCTION

The interim orders are referred to as the orders that are issued by the courts during the pendency of the litigation. It is generally issued by the courts for the maintenance of a status quo in the proceedings and also ensures that there is no kind of harm in the interests of the parties and therefore the order is passed by the court based on the principles of equity and justice. The present case of National Federation of Fishermen Co-operative Ltd. v Union of India and Others is a case in which the court has deliberately stated that the Registrar has no authority under any of the statutes and also cannot exercise any of the powers in the statute and thus also cannot pass any interim order.

BACKGROUND FACTS

The dispute was related to the management of the Fishcopfed. The petitioner claimed that the notification that was issued for the election of the tenure of the Board of directors had expired and the Board of directors that were appointed was not on the basis of timely manner and time, and due to which the Registrar on the same date suspended the election of the Board of directors of the Fishcopfed. The National Federation of Fishermen Co-operative Ltd or the Fishcopfed filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 contending that the order passed by the Registrar has to be set aside to the extent that he had appointed the vice-chairperson of the Board of Fishcopfed to officiate as a Chairperson and In-charge managing director of Fishcopfed and restrained the President and Managing Director of Fishcopfed for acting on its behalf of participating in any proceedings, discharging any functions of the Fishcopfed or from participating in any of its board meetings or proceedings were without the jurisdiction i.e., it can be stated that the registrar had exceeded his jurisdiction by passing the interim relief and orders.

GENESIS AND RULING

The court referred to the case of Life Insurance Corporation of India v. Escorts Ltd. and Others., in which the Supreme Court has held that “the only effective way the members in general meeting can exercise their control over the directorate in a democratic manner is to alter the articles so as to restrict the powers of the Directors for the future or to dismiss the directorate and appoint others in their place. The holders of the majority of the stock of a corporation have the power to appoint, by election, Directors of their choice and the power to regulate them by a resolution for their removal. And, an injunction cannot be granted to restrain the holding of a general meeting to remove a Director and appoint another.”

CONCLUSION

Thus the case of National Federation of Fishermen Co-operative Ltd. v Union of India and Others holds a great importance in the realm of arbitration proceedings and any other proceedings. The court also interpreted that The Registrar is an authority under the statute and the existence of his office, his powers, and functions are circumscribed by the provisions of the statute. Obviously, he cannot exercise powers that have not been expressly conferred. He can exercise only such powers that are statutorily conferred on him. The proposition is that in the absence of any statutory provisions conferring the power to do a particular act, the Registrar would be unfettered to do so, is fundamentally flawed.

?