Authority: High Court of Chhattisgarh at Bilaspur

Order Date: 26.10.2026

Case Overview

  • Petitioner: Margdarshan Sansthan (Agriculture College Ambikapur), a society registered under the Societies Registration Act, 1973 (Reg. No. 373 dated 14.10.1992), represented by Secretary Premendra Pratap Singh.
  • Respondents: State of Chhattisgarh (various departmental secretaries), Registrar of Indira Gandhi Krishi Vishwavidyalaya, Registrar and Assistant Registrar of Firms and Societies, State Bank of India (Branch Manager and City Branch), and the deceased former Secretary Manvendra Pratap Singh.
  • Writ Petitions: W.P.(C) No. 1596 of 2021 (challenging the bank’s “Hold” order dated 25‑Feb‑2021 on Current Account No. 35033300020) and W.P.(C) No. 4874 of 2021 (challenging the Registrar’s appellate order dated 18‑Nov‑2021 in Appeal Case No. 426/2021).
  • Background: The society’s current account was placed on “Hold” by SBI without notice, allegedly due to a dispute over the rightful Secretary of the society between Premendra Pratap Singh and the late Manvendra Pratap Singh. The society had a resolution dated 10‑Dec‑2017 authorising joint operation of the account by the Secretary and the Principal (Sushil Kumar Srivastav). An earlier order dated 15‑Jun‑2020 by the Assistant Registrar was set aside by the Registrar on 18‑Nov‑2021, which also directed a three‑member inquiry committee and interim management by trustees.
  • Petitioner’s Reliefs: Quash the 25‑Feb‑2021 “Hold” order, allow the Secretary and Principal to operate the account, and award compensation; also quash the 18‑Nov‑2021 appellate order as ultra vires.
  • State’s Argument: The dispute is internal to the society (rival claims to the Secretary post); the State respondents have no direct role, and the bank’s hold was a precaution pending resolution.
  • Bank’s Position: The hold was placed to safeguard funds amid conflicting claims over authorized signatories, based on a communication from the Assistant Registrar dated 09‑Apr‑2019.
  • Court’s Observations: The bank cannot decide the internal management dispute; the continuation of the hold adversely affects the institution’s operations (tuition fee utilisation, staff salaries, student facilities). Determination of the lawful office‑bearers is essential before the account can be operated.

Final Outcome

  • The Registrar, Firms and Societies, shall verify whether the inquiry ordered on 18‑Nov‑2021 has been completed; if not, it must be completed expeditiously and a reasoned order issued within 60 days of receiving a certified copy of this order.
  • The Registrar’s order shall decide which persons are legally entitled to manage and administer the society, considering the inquiry report, society bylaws, and all claims.
  • Upon that determination, State Bank of India shall permit operation of Current Account No. 35033300020 by the persons legally entitled, in accordance with law.
  • The Court expressly refrains from expressing any opinion on the merits of the rival claims.
  • Both writ petitions are disposed of; all pending interlocutory applications stand disposed; no order as to costs.

Topics: Bank Account Hold, Society Management Dispute