G KANNAIAH Vs. BINNY EMPLOYEES CO OPERATIVE HOUSING SOCIETY LTD

JUDGEMENT

(1.) The petitioner was a member of "The Binny Employees' Co-operative Housing Society Ltd.", called shortly as "the Society". He was also a permanent employee of the Bangalore Woollen, Cotton and Silk Mills Co., Ltd. The membership of the Society was open to only the permanent employees of the said Company as provided by its Bye-law No. 4(2). That Bye-law reads as follows: -

(2.) The question to be considered lies in a narrow compass. The question is whether the petitioner who was admitted as a member of the Society would automatically lose his membership upon his retirement from the Company and the Bye-law providing for such cessation of membership is valid. Bye-law No. 6 framed by the Society provides for the cessation of membership. It states, among others that a person shall cease to be a member of the Society if he loses the qualification prescribed under by-law No. 4(2). By-law No. 4(2) as. earlier seen, prescribes qualifications to become a member of the Society and one of the qualifications is that the person should be a permanent employee of the Company.

(3.) What is the meaning of "cessation of membership?" It is, according to me, just depriving a person of his right to continue as a member of the Society. It is, therefore, nothing short of removal of the membership. The real question would then be, whether the Karnataka Co-operative Societies Act, 1959 and the Rules framed thereunder provide for any such automatic removal or cessation of membership of the Society and whether the Bye-law providing for such result would be valid? Such a question is not for the first time coming for consideration before this Court. There are quite a number of decisions on this question in reiterating the view that a member who has been validly admitted cannot be expelled or removed from the Society. See B. B. Bannad v. The Betgeri Urban Co-operative Bank Ltd. (1), Shirayogi bhivalingappa Basavana v. Registrar of Co-operative Societies (2) and K. M.Pattanshetti v. Registrar of Co-operative Societies(3).