Kurian Joseph, J.

Administrator in a co-operative society is not entitled to enroll new members so as to alter the composition of the society. Bit is there such a restriction on the Administrator/ Administrative Committee in the matter of removal of ineligible members?

2. Petitioners in the former two cases are aggrieved by the steps taken by the respondents for removing the members of the 3rd respondent society on the ground of ineligibility. The main contention of the petitioners is that the Administrative committee. The main contention of the petitioners is that the Administrator/Administrative Committee has no power either to admit members or remove any members from the rolls of the society. The decisions of the Supreme Court in K. Shantharaj and another v. M.L.Nagaraj and others, (1997) 6 SCC 37 and Joint Registrar of Co-operative Societies v. T.A.Kuttappan. 2000(2) KLT 746 are relied on. No doubt, it is no more res integra that the Administrator/Administrative Committee appointed either under Sec.32 or 33 of the Kerala o-operative Societies Act has no power to enroll new members so as to alter the composition of the Society. But can it be said with the same force that the Administrator or Administrative Committee has no power to expel a member who is ineligible to be a member in the society?

3. The Kerala Co-operative Societies Act was introduced with a view to providing for the orderly development of the co-operative sector in the state. Member is defined under Sec. 2(1) of the Act as follows:-

"2(1) 'Member' means a person joining in the application for the registration of a co-operative society or a person admitted to membership after such registration in accordance with this Act, the rules and the bye-laws and includes a nominal or associate member."

Under Sec. 27 of the Act, "the final authority of a society shall vest in the general body of the members", subject of course to the provisions of the Act, Rules and byelaws. As far as the scheme of the Co-operative Societies Act is concerned, a co-operative society registered under the Act is a democratic institution formed by the members for the orderly development and functioning with the co-operation of the members and for the welfare of the members. In other words, it is a democratic institution by the members, of the members and for the members. Therefore, only the eligible members are entitled to participate in the activities and partake the benefits if a co-operative society. Keeping this cardinal principle in mind I shall now try to analyse the provision regarding enrolment and expulsion of members.

4. Sec. 16(1) deals with enrolment of members, which reads as follows:-

“16. Persons who may become members:-

(1) No person sshall be admitted as a member of a society except the following, namely:--

(a) an individual -

(i) who has attained the age of eighteen years:

Provided that this sub clause shall not apply in the case of a society fromed ezclusively for the benefit of the students of any school or college;

(ii) Who is not of unsound mind;

(iii) who is a resident within, or is in occupation of land in the area of operation of the society;

(b) any other society;

(ba) local self Governemnt;

(c) the Governemnt; and

(c) any body of persons, whether incorporated or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order;

Provided that in a society formed for the promotion of the economic interest of its members through a specified activity no person other than who is likely to be benefited directly by such activity mat be admitted as a member of such society unless such admission is permitted specifically by rules;

Provided further that where a society is formed exclusively for the benefit of persons engaged in any particular industry, no person who is not an actual worker in the industry, no person who is not an actual worker in the industry shall be admitted in excess of such percent