Societies Registration Act, 1860 | Section 9
Section 9: Recovery of Penalty Accruing Under Bye-law
Section 9 of the Societies Registration Act, 1860 explains when a registered society may recover a monetary penalty imposed for breach of its rules or bye-laws, and which court may hear the recovery claim.
Text of Section 9 - Recovery of penalty accruing under bye-law
Whenever by any bye-law duly made in accordance with the rules and regulations of the society, or, if the rules do not provide for the making of bye-laws, by any bye-law made at a general meeting of the members of the society convened for the purpose (for the making of which the concurrent votes of three-fifths of the members present at such meeting shall be necessary), any pecuniary penalty is imposed for the breach of any rule or bye-law of the society, such penalty, when accrued, may be recovered in any Court having jurisdiction where the defendants shall reside, or the society shall be situate, as the governing body thereof shall deem expedient.
Meaning and scope of Section 9
A bye-law is an internal rule adopted by a society under the authority of its governing documents. A pecuniary penalty is a financial sum imposed for a breach of a society rule or bye-law. The section supplies a means of court recovery of an accrued penalty; it does not itself create a general power to impose any penalty regardless of the society's rules, applicable law or fairness.
Conditions for recovery of a penalty
- Valid authority: The penalty must arise from a bye-law duly adopted in accordance with the society's rules and regulations.
- Special approval where rules are silent: If the rules do not provide for making bye-laws, the bye-law must be made at a general meeting convened for that purpose with the concurrent votes of at least three-fifths of members present.
- Breach and accrual: There must be a breach of a rule or bye-law, and the stipulated financial penalty must have accrued.
- Competent court: Recovery must be pursued in a court having jurisdiction at the place where the defendant resides or where the society is situated, subject to applicable procedural law and local amendments.
Practical steps before approaching the court
The governing body should examine the registered memorandum, rules and bye-laws, confirm the adoption procedure and voting record, identify the alleged breach, calculate the amount claimed and preserve supporting evidence. Where the rules prescribe notice, an opportunity to respond, an internal appeal or other procedure, those requirements should be followed. The society should verify the appropriate civil remedy, limitation period and court jurisdiction before filing.
Related provisions
Section 6 addresses suits by and against registered societies. Section 8 addresses enforcement of judgments against society property. Section 10 concerns certain suits against members. These provisions should be read together where relevant.
State amendments and local law
The Societies Registration Act, 1860 has been amended or replaced by separate legislation in various States and Union Territories. The application of Section 9, the competent authority and the procedure can therefore differ by jurisdiction. Before relying on this provision, consult the Act as applicable in the State where the society is registered and the society's governing documents. The general central text above is not a substitute for local amendments.
Frequently asked questions
Can every society impose a monetary penalty?
No. Section 9 concerns recovery of a penalty created through a duly made bye-law; the penalty must have a lawful basis and have accrued following the applicable rules.
Is a three-fifths vote always required?
No. The special three-fifths vote of members present at a purpose-convened general meeting applies under the central text when the society's rules do not provide for making bye-laws.
Where can the society recover the amount?
Under the general text, a court having jurisdiction where the defendant resides or where the society is situated may be approached, subject to applicable jurisdictional and procedural requirements.
Official legal sources
Consult the India Code official legislation database for the Societies Registration Act, 1860 and applicable amendments. The Legislative Department, Government of India also provides access to central legislation. For current local requirements, consult the relevant State Registrar of Societies.
This article explains the general wording of Section 9 and should be read with applicable State amendments, society rules and current court procedure.