Appeals Allowed; Court Reverts Decision to Government Authority in Light of Previous Delhi HC Judgment
The Kerala High Court, on December 19, 2025, pronounced a pivotal judgment concerning the governance of the Sree Narayana Dharma Paripalana Yogam (the Yogam), directing the Government of India to determine whether the Yogam falls under the purview of the Kerala Non-Trading Companies Act, 1961, or the Companies Act, 1956, and subsequently the Companies Act, 2013.
This directive came while allowing appeals challenging a Single Judge's verdict that had quashed the Indian government's 1974 order granting the Yogam exemption from certain provisions of the Companies Act, 1956. The appeals arose from four writ petitions filed by the Yogam’s members challenging the order and amendments to the Yogam's Articles of Association, which restricted voting rights to representatives rather than individual members.
The division bench, comprising Justices Devan Ramachandran and M.B. Snehalatha, emphasized the need for the competent authority to address whether the Yogam is governed by the state-specific Kerala Non-Trading Companies Act or by the national Companies Acts. The court noted that similar directions had already been issued by the Delhi High Court in 2009, which necessitated further action by the central government.
The bench highlighted the intricate legal questions surrounding the Yogam's status, noting that an evaluation of its objectives, geographical scope, and historical registration under various acts is required. It refrained from making a definitive ruling on the Yogam's governance, stressing that these were matters of disputed facts that should initially be addressed by the appropriate government authority.
Furthermore, the court addressed the argument concerning the effect of the Companies Act, 2013, on the 1974 exemption order. The new act, which replaced the Companies Act, 1956, raised questions about the continued validity of exemptions granted under the old regime, specifically in light of Sections 462 and 465, which govern exemptions and the repeal of prior enactments.
The court dismissed the writ petitioners' argument that they could directly challenge the Articles of Association through a writ petition, asserting that such matters should be pursued through statutory remedies provided under the applicable laws.
In conclusion, the Kerala High Court set aside the previous judgment and directed the Government of India to act in accordance with the Delhi High Court's 2009 judgment, ensuring all parties are heard in the process. The central government has been tasked with completing this exercise within three months, addressing all aspects including the implications of the Companies Act, 2013, on existing orders.
Bottom Line:
Dispute regarding governance of 'Sree Narayana Dharma Paripalana Yogam' under Kerala Non-Trading Companies Act, 1961 versus Companies Act, 1956 and Companies Act, 2013 - Court held that the matter requires determination by the competent Authority of the Government of India in light of the judgment of the Delhi High Court dated 09.02.2009.
Statutory provision(s): Companies Act, 1956, Companies Act, 2013, Kerala Non-Trading Companies Act, 1961, Constitution of India Article 226
Binu Surendran v. V.Vijayakumar, (Kerala)(DB) : Law Finder Doc Id # 2831309
