When deflection of large sum of money for unauthorised construction is a Civil Dispute

Jharkhand High Court Declares School Management Dispute as Civil, Grants Bail to Accused. Allegations of Misappropriation in School Management Resolved Under Society Registration Act, Petitioner Released on Bail

In a significant ruling, the Jharkhand High Court, under the judgment of Mr. Ambuj Nath, J., has declared a complex dispute involving allegations of financial defalcation in the management of a school as civil in nature. The case, centered around Sri Ram Krishna Seva Sangh and its school management, involved accusations of unauthorized financial activities, including the misappropriation of Rs. 3.17 crores for constructing a school building without necessary authorizations.

The petitioner, Malay Kumar @ Malay Kumar Nandi, was accused alongside other individuals of misusing school funds for personal and unauthorized purposes. The allegations included the unauthorized construction of a school building and the purchase of a vehicle using school resources. Despite these charges, the court acknowledged the civil nature of the dispute, emphasizing the need for resolution under the Society Registration Act.

The court noted that the conflict stemmed from internal disagreements between two factions vying for control over the school management. Earlier, the Inspector General of Registration, Jharkhand, had recognized one faction as the legitimate office bearers, a decision subsequently challenged and set aside by the court.

Significantly, the court referenced precedents where co-accused individuals had been granted anticipatory bail, further supporting the civil characterization of the dispute. Emphasizing the procedural history and civil context, the court decided to grant bail to the petitioner. The petitioner was released on a bail bond of Rs. 20,000, highlighting the court's inclination to treat the matter within the purview of civil adjudication rather than criminal prosecution.

This judgment marks a pivotal moment in distinguishing civil disputes from criminal allegations, particularly in cases involving management and financial operations within registered societies. The court's decision underscores the importance of addressing such conflicts through competent civil courts, ensuring that justice aligns with the legal frameworks governing registered societies.

Bottom Line:

Allegation of defalcation of large sum of money for unauthorized construction of school building and other financial irregularities in a case involving dispute between two factions of a school management declared as civil in nature by a Single Judge in light of "Society Registration Act".

Statutory provision(s): Sections 406, 420, 408, 467, and 120B of the Indian Penal Code, Society Registration Act

Malay Kumar @ Malay Kumar Nandi v. State of Jharkhand, (Jharkhand) : Law Finder Doc Id # 2796492