/2022 INSC 0958/ REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 8039 OF 2022 Institute of Company Secretaries of India       …Appellant  Versus Biman Debnath & Ors.     …Respondents With CIVIL APPEAL NOS. 8040­41 OF 2022 Anil Kumar Dubey          …Appellant  Versus Biman Debnath & Ors.     …Respondents J U D G M E N T M.R. SHAH, J. 1. Feeling   aggrieved   and   dissatisfied   with   the   impugned judgment  and order  dated 13.04.2022 passed by the  High  Court 1 of Judicature at Calcutta in MAT No.213 of 2022 and MAT 219 of 2022 with CAN 1 of 2022 by which the High Court has dismissed the   said   appeal   and   has   confirmed   the   judgment   and   order passed   by   the   learned   Single   Judge   by   which   the   learned   Single Judge allowed the writ petition bearing No.WPA 1367 of 2022 by quashing and setting aside the election of the office bearers of the Regional   Council   for   the   year   2022   held   in   the   316 th   Meeting   of Eastern   India   Regional   Council   of   the   Institute   of   Company Secretaries of India, the Institute of Company Secretaries of India has preferred the present appeal.  2. Notice dated 20.12.2021 was issued for elections to be held on 27.12.2021 for the Eastern India Regional Council (hereinafter referred to as ‘EIRC’) of Institute of Company Secretaries of India (hereinafter referred to as ‘ICSI’) to take effect from 19.01.2022 for the period of one year.   The meeting of the Regional Council was required   to   be   chaired   by   the   Chairman,   EIRC.     However,   before the   actual   date   of   election   on   27.12.2021,   the   Chairman,   EIRC was disqualified to hold his office on 22.12.2021.  Thus, the office of   the   Chairman   fell   vacant   in   terms   of   Regulation   117(2)   of   the 2 Company Secretaries Regulations, 1982 (hereinafter referred to as “Regulations   1982’).     As   the   post   of   Chairman   fell   vacant,   the same   was   required   to   be   filled   in   for   the   remaining   period   in terms of Regulation 119(2).   The contesting respondent herein as a Vice Chairman was allowed to chair the meeting for the limited purpose   of   election   to   the   post   of   Chairman   for   the   remaining period   of   current   year   ending   on   18.01.2022   in   terms   of Regulation   119(2).     The   contesting   respondent   no.1   herein   as   a Vice­Chairman   was   allowed   to   chair   the   meeting   for   the   limited purpose   of   election   to   the   post   of   Chairman   for   the   remaining period   of   the   current   year   ending   on   18.01.2022   in   terms   of Regulation 119(2).  It appears that the contesting respondent no.1 was   disrupting   the   meeting,   the   remaining   members   decided   to proceed   with   the   agenda   item   i.e.   electing   the   chairman   for   the remaining period and for that purpose appointed respondent no.3 –   Mr.   Anil   Kumar   Dubey   to   chair   the   said   item.     That   thereafter elections   took   place   and   the   respondent   no.3   –   Mr.   Anil   Kumar Dubey was duly elected as Chairman for the remaining period. 3 2.1 He   was   elected   for   the   period   19.01.2022   to   18.01.2023. The   Respondent   no.1   who   did   not   participate   in   the   election and/or   contest   filed   the   writ   petition   before   the   learned   Single Judge   contending   inter   alia   that   the   meeting   dated   27.12.2021 chaired by Respondent no.3 was illegal.  According to Respondent no.1,   in   absence   of   the   Chairman,   the   Vice­Chairman   would become the Chairman and therefore the meeting was required to be   chaired   by   him.     However,   it   was   the   case   on   behalf   of   the Institute   and   the   contesting   original   respondents   that   meeting was   convened   legally   and   the   Chairman   was   elected   for   the remaining   period   as   per   Regulation   119(2)   of   the   Regulations, 1982.  It was the specific case on behalf of the contesting original respondents   that   it   was   a   case   of   vacation   of   office   and   not   the absence   of   an   office   bearer   for   a   particular   period   of   time.     The learned   Single   Judge   allowed   the   writ   petition   and   set   aside   the elections   of   the   office   bearers   elected   in   the   meeting   held   on 27.12.2021   mainly   on   the   ground   that   the   meeting   was   not chaired   by   the   Vice­Chairman   who   in   absence   of   the   Chairman was  required to  conduct  and/or   chair  the  meeting   as Chairman. 4 The Judgment and Order passed by the learned Single Judge has been   confirmed   by   the   impugned   judgment   and   order   of   the Division   Bench   of  the   High   Court.    Hence,   the  present   appeal  at the instance of the ICSI. 3. We   have   heard   Shri   Sanjiv   Sen,   learned   Senior   Advocate appearing   on   behalf   of   the   appellant   and   Shri   Ritin   Rai,   learned Senior Advocate appearing on behalf of the contesting respondent no.1.     We   have   gone   through   the   impugned   judgment   and   order passed by the learned Single Judge as well as the Division Bench of the High Court. 4. From   the   judgment  and  order   passed  by   the   learned  Single Judge   confirmed   by   the   Division   Bench   of   the   High   Court   it appears that the learned Single Judge quashed and set aside the election   of   the   office   bearers   of   the  EIRC   on   the   ground   that   the meeting was not presided over by the Vice­Chairman (Respondent no.1   herein).     Therefore,   the   short   question   which   is   posed   for consideration   is   as   to   whether   the   meeting   i.e.   21.07.2021   was presided   over   by   the   person   duly   elected   as   Chairman   for   the remaining period? 5 4.1 While   considering   the   aforesaid   issue   relevant   provisions   of the   Regulations   1982   are   required   to   be   referred   to   namely Regulations 92, 117 & 119 which are as under: “92.   Chairman   of   the   Council.­   At   all   meetings   of   the Council,   the   President,   and   in   his   absence   the   Vice­ President shall be the Chairman; in the absence of both, the members present shall elect one of the their number to be the Chairman of meeting.  Provided   that,   at   the   first   meeting   of   any   Council   the President   of   the   outgoing   Council,   or   in   his   absence   its Vice­President,   shall   act   as   the   Chairman   until   such time   a  President   is   elected   under   the   provisions   of   sub­ section (1) of section 12.  Provided   further   that   in   the   absence   of   both   the President and the Vice president of the outgoing Council the members of the Council present shall elect one of the members   to   be   the   Chairman   of   the   meeting   until   such time   a  President   is   elected   under   the   provisions   of   sub­ section (1) of section 12.” *** “117.   Vacancies.­   (1)   A   member   of   a   Regional   Council may at any time resign his membership by writing under his   hand   addressed   to   the   Chairman   of   the   Regional Council   and   the   seat   of   such   member   shall   become vacant   when   such   resignation   is   notified   in   the   Journal or   when   the   Regional   Council   next   meets,   whichever   is earlier.  (2)   An   elected   member   of   a   Regional   Council   who   has been   found   guilty   of   any   professional   or   other misconduct   and   awarded   penalty   of   fine   or   does   not attend   three   consecutive   meetings   of   the   Regional 6 Council or Committee thereof, unless he applies for leave of absence in writing and it is granted for each meeting, shall   be   deemed   to   have   vacated   office   from   the   date   of the   order   or   at   the   conclusion   of   the   third   meeting unless he applies for leave of absence in writing and it is granted for each meeting. (3)   Any   vacancy   caused   by   the   resignation,   death   or removal   from   the   Register   of   an   elected   member   of   the Regional   Council   may   be   fi   by   the   Regional   Council   by co­option   of   another   member   entitled   to   vote   in   and stand   for   election   to   the   Regional   Council   with   the approval of the President.  (4)   If   a   member   of   the   Regional   Council   [including   a member   of   the   Council   becoming   a   member   of   the Regional Council under clause (a) of sub­regulation (2) of Regulation   111]   changes   his   professional   address   from the regional constituency to which he belonged to at the time   of   election   or   co­option,   as   the   case   may   be,   to another regional constituency, such member shall cease to   be   member   of   that   Regional   Council   from   that   date. The   vacancy   so   caused   may   be   filled   by   the   Regional Council   by   co­option   of   another   member   in   the   same manner as provided in sub­regulation (3).  (5) In  the case of a member  of a Regional  Council being elected   to   the   Council,   without   prejudice   to   his   right   to be represented on the Regional Council under clause (a) of sub­regulation (2) of Regulation 111, he shall cease to be   an   elected   member   of   the   Regional   Council   and   the vacancy   thus   caused   may   be   filled   up   by   co­options   by the   Regional   Council   in   the   manner   set   out   in   sub­ regulation (3). (6) A co­opted member shall hold office as a   member   of   the   Regional   Council   for   the   duration   of office of that Regional Council.”  *** 7 “ 119.   Proceedings   of   the   Regional   Council .­   (1)   One­ third of the members of the Regional Council for the time being shall constitute the quorum.  (2) Every Regional Council shall at its first meeting held after   its   constitution   and   in   subsequent   years   at   a meeting to be held in December of  every  year elect from amongst   its   members   a   Chairman,   a   Vice­Chairman,   a Secretary   and   a   Treasurer   thereof   to   hold   office   for   a period   commencing   from   the   date   of   its   first   meeting after constitution or from 1st January of the subsequent year   as   the   case   may   be,   till   the   31st   December   of   that year and so often as any of those offices become vacant, the   Regional   Council   shall   elect   another   person   from amongst its members to hold the office for the remaining period of a year. Provided   that   the   retiring   office   bearers   shall   be   eligible for   re­election   to   any   of   the   offices   of   the   Regional Council   if   they   continue   to   be   members   of   the   Regional Council.  (3)   The   first   meeting   of   the   Regional   Council   referred   to in sub­regulation  (2)   shall   be   called   and   held   within   one   month   from   the date of its constitution 70[* * * * * *].  (4) If within half an hour from the time appointed for the said   first   meeting   of   the   Regional   Council   referred   to hereinbefore,   a   quorum   as   mentioned   in   sub­regulation (1)   above   is   not   present,   the   said   first   meeting   shall notwithstanding   anything   contained   in   that   Regulation stand adjourned to the same day in the next week at the same   time   and   place   and   at   such   adjourned   meeting   of the   Regional   Council,   the   member   or   members   present, shall   constitute   the   quorum   and   shall   have   power   to transact all the business which could properly have been transacted at the original meeting.”  8 4.2 Regulation 117 deals with the vacancies.   As per Regulation 117(2)   an   elected   member   of   Regional   Council   who   has   been found   guilty   of   any   professional   or   other   misconduct…….,   shall be   deemed   to   have   vacated   office   from   the   date   of   the   order.     In the   present   case   the   then   Chairman,   EIRC   was   disqualified   to hold his office on 22.12.2021.  Therefore, it was a case of vacation of office of the Chairman.   4.3 Regulation   119   deals   with   the   Proceedings   of   the   Regional Council.  As per Regulation 119(2) every Regional Council shall at its   first   meeting   held   after   its   constitution   and   in   subsequent years at a meeting to be held in December of every year elect from amongst its members a Chairman, a Vice­Chairman, a Secretary and   a   Treasurer   thereof   to   hold   office   for   a   period   commencing from the date of its first after constitution or from 1 st   January of the subsequent year as the case may be till the 31 st   December of that  year and so often as any of those offices become  vacant , the Regional   Council   shall   elect   another   person   from   amongst   its members   to   hold   the   office   for   the   remaining   period   of   a   year. Thus,   as   the   office   of   the   Chairman   fell   vacant   due   to   its 9 disqualification   any   person   from   amongst   its   members   was required   to   be   elected   as   Chairman   and/or   to   hold   the   office   of the Chairman for the remaining period.   Therefore, in exercise of powers   under   Regulation   119(2)   of   the   Regulations,   1982, Respondent   No.3   ­   Anil   Kumar   Dubey   was   elected   as   the Chairman for the remaining period who presided over the meeting dated 27.12.2021. 4.4 However,   it   was   the   case   on   behalf   of   Respondent   no.1 which   came   to   be   accepted   by   the   learned   Single   Judge   and   the Division   Bench   of  the   High   Court  that   being   a  Vice  Chairman,  a meeting   was   required   to   be   chaired/presided   over   by   him   in absence   of   the   Chairman.     Heavy   reliance   was   placed   on Regulation   92(2).     On   fair   reading   of   Regulation   92(2)   read   with Regulation   117(2),   we   are   of   the   opinion   that   Regulation   92(2) shall not be applicable at all.  Regulation 92(2) shall be applicable only   in   a   case   of   absence   and   not   in   a   case   where   the   post   of Chairman   and/or   office   bearer   has   fallen   vacant.     There   is   a distinction   between   the   absence   and   the   post   fallen   vacant. Regulation   92(2)   shall   be   applicable   in   a   case   where   the 10 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)).  In that view of the matter   both,   the   learned   Single   Judge   as   well   as   the   Division Bench   of   the   High   Court   have   seriously   erred   in   misinterpreting Regulation 92(2) and Regulation 117 read with Regulation 119(2). Both,   the   learned   Single   Judge   as   well   as   the   Division   Bench   of the  High Court  have not  appreciated the  distinction  between  the vacation   of   office   under   Regulation   117(2)   of   the   Regulation   and the   absence   of   an   office   bearer   under   Regulation   92.     Under   the circumstances   both,   the   learned   Single   Judge   as   well   as   the Division   Bench   of   the   High   Court   have   seriously   erred   in quashing and setting aside the election of the office bearers of the 11 EIRC   of   ICSI   held   in   the   meeting   held   on   27.12.2021   on   the ground   that   the   meeting   was   not   presided   over   by   the   Vice Chairman (Respondent no.1 herein). 5. Now   so   far   as   the   submission   made   by   Shri   Ritin   Rai, learned   Senior   Advocate   appearing   on   behalf   of   the   contesting respondent   no.1   that   even   otherwise   the   election   was   not   held legally   and   there   was   irregularity   in   conducting   the election/meeting   is   concerned,   at   the   outset   it   is   required   to   be noted   that   there   were   disputed   questions   of   fact   on   whether   the meeting and/or election was irregularly conducted or not.  As per Regulation   114(4)   whether   any   dispute   arises   regarding   any election to a Regional Council, the matter may be referred by the candidate   concerned   within   30   days   from   the   date   of   the declaration  of the result of  the  election, to the  President  and the decision   shall   be   final.     Under   the   circumstances,   in   view   of Regulation 114(4) of the Regulations, 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 12 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.   6. In view of the above and for the reason stated above present appeals   succeed.     The   impugned   judgment   and   order   passed   by the Division Bench of the High Court as well as the learned Single Judge quashing and setting aside the election of the office bearers of   the   EIRC   of   the   ICSI   held   on   27.12.2021   are   hereby   quashed and   set   aside.     The   original   writ   petitions   stand   dismissed. Present appeals are accordingly allowed.  No costs. ………………………………….J.  [M.R. SHAH] NEW DELHI; ………………………………….J. NOVEMBER 7, 2022  [M.M. SUNDRESH] 13 14