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1993 Supreme(Ker) 4

Judges : JAGANNADHA RAO,SREEDHARAN
Vasavan - Appellant
Versus
District Coir Project Officer - Respondent
Case No : No.
Decided On : 01/06/1993
Advocates Appeared :
K.S. Radhakrishnan For Appellant E. Subramani For Respondents

The main legal point established in the judgment is that compliance with the conditions for admission to membership and payment of share capital, as prescribed by the Act and Rules, determines the validity of admission of members and their entitlement to vote in the election.

Headnote:

Admission of Members - Co-operative Society - S.16, S.19, Rule 16, Rule 20, Rule 26, Rule 28 - The court discussed the conditions for admission to membership, payment to acquire membership rights, prohibition on admission of members, and the right to vote at the election. The interpretation of these provisions influenced the court's decision in determining the validity of the admission of members and their entitlement to vote in the election.

Fact of the Case:

The appeal concerns the admission of 50 persons as members of a co-operative society and their entitlement to vote in the election. The appellant argued that the admission of these persons violated Rule 26 of the Kerala Co-operative Societies Rules as the full share capital was not paid within sixty days from the date of election.

Finding of the Court:

The court found that the admission of the 50 persons as members was valid as they had complied with the conditions for admission and payment to acquire membership rights. It held that their admission was not within sixty days before the date of election, and therefore, they were entitled to vote in the election.

Issues: The issues revolved around the compliance with the conditions for admission to membership, payment of share capital, and the prohibition on admission of members within a specific period before the election.

Ratio Decidendi: The court interpreted S.16, S.19, Rule 16, Rule 20, Rule 26, and Rule 28 to determine the validity of the admission of members and their entitlement to vote in the election. It emphasized that the payment of the entire share capital and compliance with the bye-laws were crucial for admission to membership and the right to vote.

Final Decision: The court dismissed the appeal, affirming that the 50 persons were validly admitted as members and were entitled to vote in the election held on 29-11-1992.

Judgment :-

Jagannadha Rao, C.J.

This is an appeal preferred against the judgment of the learned Single Judge in O.P. No, 10687 of 1992 dated 14-12-1992 by, which the Writ Petition was dismissed. The matter re lales to election to a co-operative society. The contention of the writ petitioner-appellant is that 50 persons had obtained membership within sixty days from the date of election, and therefore they ought not to have been allowed to vote. The learned Single Judge found that the admission of the said fifty persons was not within sixty days from the dale of election, and that therefore their inclusion in the voters' list and there participation in the election were valid. A point was however raised before the learned Single Judge that the share-capital was not fully paid by these fifty persons on the date on which they made their applications for admission and they were permitted to pay the share-capital in installments under the bye-law of the society and that therefore unless all the installments were paid well before the prohibited period of sixty days before the date of election, they would not be entitled to be admitted as members. This contention was rejected by the learned Single Judge. This appeal is preferred against the said judgment.

2. The following arc the facts. The above said fifty persons submitted their applications for membership on 4-1-1992, and paid Rs. I/- towards application form and Rs. 14/- towards partial subscription for the share-capital. Each of them paid the remaining Rs. 36/- on 28-7-1992. In so far as there admission as members is concerned; resolution admitting them as members was even passed on 4-1-1992 itself. Election notification was issued on 31-7-1992 as per Ext. P3 fixing the date of election as 16-9-1992. The petitioner as per Exts filed objections. P1 and P2 on 7-8-1992, but the same were rejected and Preliminary Voters' List was published and the came was finalized and election, which was scheduled to take place on 16-9-1992 was postponed and elections were held on 29-11-1992. As stated earlier, the application fee of Rs. I/- and Rs. 14/- towards share capital were paid on 4-1-1992, and the balance of the share-capital was paid on 28-7-1992 by each of these fifty persons.

3. According to the learned counsel for the appellant, all the fifty persons would be entitled to be admitted as members only on or after 28-7-1992, when they paid the entire share capital, and that unless the said date is out of sixty days from the date of election, the admission of me said members is violative of Rule 26 of the Kerala Co-operative Societies Rules, and is therefore invalid.

4. For the purpose of understanding the above contention, it is necessary to refer to the relevant provisions of the Act and Rules. S.16 deals with qualification of persons to become members. S.19 reads as follows:

"19. Member not to exercise rights till due payment made:-No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect or membership of has acquired such interest in the society, as may be prescribed by the rules or the bye-laws".

Rule 16 of the Rules deals with conditions to be complied with for admission for membership. It reads as follows:

"16. Conditions to be complied with for admission for membership.-f!) No person shall be admitted as a member of a society unless -

(a) He has applied in writing in the form if any laid down by the society.

(b) His application is approved by the committee of the society.

(c) He has fulfilled all other conditions laid down in the Act, Rules and By-laws.

(d)

Rule 20 deals with payment to be made to acquire rights of a member, and it reads as follows:

"20. Payment to be made to acquire rights of a member.-'Hie payments to acquire right of membership shall include -

(1) Admission fee

(ii) Subscription to share capital

(iii) any other payments required to be made under the bye-laws".

Rule 26 deals with prohibition on admission of members a













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