Pathak, J. - (1.) THE petitioner Sul tan Singh, applies under Article 226 of the Constitution for an order directing the Assistant Registrar, Incharge, Jhansi Division, not to enforce the bye laws framed by him in respect of the Jhansi District Co-operative Bank Limited, and also prays that the bye-laws be quashed.
(2.) THE Jhansi District Co-opera tive Bank Ltd., (which for convenience we may refer to as "the Bank") is a co operative society registered in 1932 under the Co-operative Societies Act, 1912, and constituted, it is said, with the sole pur pose of providing banking facilities to its members. Under the bye-laws, as amended from time to time, the Board of Directors of the Bank included a Dir ector elected by the share-holders. The petitioner acquired a block of shares in the Bank in 1961 and became a share holder. In 1962, he was elected by the share-holders as Director, which office he continued to hold by virtue of succes sive elections. The petitioner alleges that in 1969 his name was taken off the roll of the ordinary members of the Bank, and he has been denied the right to participate in the affairs of the Bank. The question is whether the petitioner is en titled to any relief. On January 26, 1968, the U. P. Co-operative Societies Act, 1965 was brought into force, repealing the Co operative Societies Act, 1912 in its ap plication to Uttar Pradesh. Section 17 (1) of the new Act lists the persons who can be members of a Co-operative So ciety. They include individuals satisfying certain qualifications, Co-operative Socie ties, the State Government, the Central Government, the State Warehousing Cor-portion and any other body corporate ap proved by the Registrar generally or in particular for ordinary or nominal membership of Co-operative Societies. Section 17 (2), which is material for our purposes, provides: "Notwithstanding anything contain ed in sub-section (1) a Joint Stock Com pany or an individual shall not be ad mitted as an ordinary member in such co-operative society or societies or class of co- operative societies as may be pres cribed." Section 2 (q) defines "prescribed" as meaning "prescribed by rules". There fore, both individuals and Joint Stock Companies are barred from the ordinary membership of such co-operative societies or class of co-operative societies as are specified by the rules, and this is so not withstanding that S. 17 (1) contemplates Individuals as members of co-op, so ciety. R. 44 of the U. P. Co-operative So cieties Rules, 1968 provides: "(a) ........................ (b) No person, who is an Individual, shall be admitted as an ordinary mem ber in (i) an apex society or Central Bank (other than U. P. State Co-operative Land Development Bank and an Urban Central Bank). (ii) a central society which includes any other central society in its ordinary membership"
(3.) A Central Bank, as defined by Rule 44 (c) contemplates that the adjust Section 2 (k) of the Act, is "a co- operative of its membership by the society live society, the main object of which is must be in accordance with the bye-laws to lend money to co-operative societies of the society. which are its ordinary members." Ad- 5 The be laws of a society remittedly the Jhansi District Co-opera- therred t Rule 44 (c) are the be are Bank Limited is a Central Bank laws in force under the new Act Sec. There 13 also no dispute that i is not selection 131 (1) declares that a cooperative an urban central bank. The result is sodety in pod under the Co-opera- l, (2) fud tive Societies Act, 1912 shall when the with Rule 44 (b) an individual cannot be new Act is brought into force be deem. admitted as an ordinary member of the ed to be Risiere under the new Act Jhansi District Co-operative Bank Ltd., and its bye.-laws shalli so far as the and the petitioner, who was an mdivi- same are not inconsistent the exdual was an ordinary member of the press provisions of this Act continue Bank before the new Act came into force forse mm altered or rescomended according is not entitled to be an ordinary mem- to the provisions of this andct." To bring ber of the Bank under the new Act. Rule the existing bye-.laws into conformity 44 (c) provides, however, with the provisions of the new Act, Sec- "If a society mentioned in sub-rule (b) has on the date of coming into force o of the Act .individuals as its ordinary members, the Society shall within a period of one year from such date or such further period as the Registrar may, for reasin to any be recorded, allow for any cooperative society adjust its membership to any other class mentioned in sub-section (1) of Section 18 in accordance with the provision of the bye- laws of the Society." Section 18 (1) details the classes of members which a Co-operative Society may have. In addition to ordinary mem bers, it may have sympathiser members, nominal members and associate mem bers. Rule 44 (c) enables the society within a specified period to adjust its membership to any of these classes in accordance with the provisions of the bye-laws of the Society, and in this way a measure of relief is available to indi viduals who were formerly ordinary members of the society. If such indivi dual is genuinely interested in the pro motion of the object of the society or in the welfare of the member workers he can, by virtue of Section 18 (2) (a), be admitted as a sympathiser member. The number of sympathiser members in a society is, by Section 18 (2) (b), limited to 5% of the total number of ordinary members, and the number of sympathiser members on the committee of manage ment is also limited. Nominal member ship is contemplated for those persons with whom the society has or proposes to have business dealings, and associate membership is open to seasonal or tem porary workers or apprentices in the business of the society or who are other wise interested in such business. A per son, who is denied the ordinary membership of a society by reason of Rule 44 (b) may be a sympathiser member of the society provided he fulfils the con ditions set out in Section 18 (2) (a), and the provisions of Rule 44 (c) are avail ed of by the society. As we have seen, Rule 44 (c) contemplates that the adjust ment of its membership by the society must be in accordance with the bye-laws of the society.;