Society Election Disputes Involve Collective Rights, Not Arbitrable: Delhi High Court

Holding that disputes arising out of a society's election process are inherently non-arbitrable, the Delhi High Court refused to appoint an arbitrator and declined interim relief to stay the upcoming elections of the Akhil Bhartiya Agrawal Sammelan.

“An election of a society comprising approximately 1,20,000 members involves collective rights. A challenge to the election process, the appointment of a Chief Election Officer, or the validity of the voter list is not a private dispute between two individuals; it is an action in rem. The outcome of such a challenge affects the democratic rights of the entire electorate and the governing structure of the society as a whole. To put it differently, the disputes pertaining to election, which bind not only the contesting candidates but all those in the electoral roll, are inherently non-arbitrable,” Justice Vikas Mahajan held.

Dismissing the petition filed by Nathu Ram Jain, the court held that such disputes involve collective rights of the entire electorate and cannot be resolved through private arbitration but must instead be addressed under the mechanism provided in the society's constitution.

The dispute arose following an election notification dated March 16, 2026 for electing the Sammelan's National Office Bearers for the 2026–2031 term.

Jain, a member of the society, challenged the election process, alleging irregularities in the Annual General Meeting held on March 15, 2026 and the subsequent notification.

He contended that the AGM was held without proper notice, the election notification was improperly published, the Chief Election Officer was unauthorised, mandatory regional elections were bypassed, and the voter list was incomplete.

The petition was filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator, along with an application under Section 9 seeking interim relief to stay the elections.

The petition was filed on April 23, 2026, just two days before the scheduled elections, despite Jain having participated in the election process by filing his nomination on March 28, 2026.

Invoking Clause 43 of the Sammelan's constitution, Jain argued that disputes between members and the society must be resolved through arbitration.

Opposing the plea, the Sammelan and its office bearers argued that election disputes fall outside the arbitration clause and must instead be resolved under Clauses 19(14) and 19(15) through the Election Officer and a three-member Tribunal constituted on January 28, 2026. They also contended that courts should not interfere once the election process has commenced.

Accepting these submissions, the court held that the arbitration clause does not extend to election disputes and that the society's internal mechanism must be followed, including recourse to the Tribunal after the elections.

“It must be borne in mind that in any institution governed by democratic principles, no individual member possesses an absolute right to seek an injunction that would effectively stall the formation of the governing body. The collective democratic will of the electorate and the smooth functioning of the association cannot be held to ransom by the grievances of a few individuals. Rather, the prudent approach is to leave the internal electoral machinery to be strictly governed by the established Rules and Regulations of the Association. Any judicial intervention at an intermediate stage would not only defeat the very purpose of the democratic exercise but also cause undue administrative paralysis within the society,” the court said.

The court also noted that Jain had acquiesced in the process by participating in the elections and approaching the Court at the last moment.

It ultimately dismissed the petition as not maintainable and rejected the plea for interim relief.

For Petitioner (Nathu Ram Jain): Advocates Vinod Dahiya, Shreya Garg, Vandana Dahiya.

For Respondent (Akhil Bhartiya Agrawal Sammelan & Ors.): Advocates Thakur Sumit, Gaurav Rathod, Kumar Mukesh, Chetna Goyal.