The court ruled that provisions for member expulsion apply only to regular members, affirming the validity of actions against an associate member when proper bye-laws are followed.

ORDER

This writ petition has been filed challenging the order of the first respondent dated 19.03.2018, confirming the order of the second respondent dated 04.10.2017.

2. The petitioner was an associate member of the second respondent-Society. According to the petitioner, she filed several writ petitions against the members of the second respondent-society and the Board of Directors, for misappropriation of funds of the society, to the tune of Rs.11.07.Crores. The petitioner states that as a counterblast, the second respondent passed an order on 04.10.2017, removing the petitioner from the membership of the society, for violation of Sections 25 and 37 of the Tamil Nadu Co-operative Societies Act, and therefore, the petitioner filed an appeal under Section 152(2)(a) of Tamilnadu Co-operative Societies Act, 1983. Since the first respondent did not take up the appeal, the petitioner filed writ petition in W.P.No. 28381 of 2017, for direction to the 1st respondent to dispose the statutory appeal filed by the petitioner, within a stipulated time. The said writ petition was disposed on 07.11.2017, directing the first respondent, to dispose the appeal on merits and in accordance with law, within a period of three weeks from the date of receipt of a copy of the order. After the disposal of the writ petition, the first respondent passed an order on 02.08.2017, directing the petitioner to approach the Deputy Registrar of Co-operative Societies by raising a dispute. Thereafter, the petitioner challenged the 1st respondent's order in W.P.No. 30666 of 2017. The petitioner states that the writ petition was allowed on 30.11.2017, directing the first respondent to entertain the petitioner's appeal and pass orders in accordance with law, within a period of 8 weeks, from the date of receipt of a copy of the order. The first respondent did not dispose of the appeal within the time stipulated and therefore, the petitioner filed Contempt Petition No. 344 of 2018. During the pendency of the contempt petition, the 1st respondent passed the impugned order and so the contempt petition was closed with liberty to the petitioner to challenge the order. The petitioner, therefore, filed the above writ petition challenging the order of the 1st respondent dated 19.10.2017.

3. The first respondent, filed a detailed counter stating that the petitioner was not a 'A' Class/Regular member of the Co-operative Society and therefore, the provisions of Section 25 of the Tamilnadu Co-operative Societies Act, 1983 did not apply to the petitioner. The respondent stated that the petitioner was an associate member of the society and therefore, the petitioner was governed only by the provisions of the bye-laws of the Society and hence the petitioner had no locus standi to claim relief under of the Tamilnadu Co-operative Societies Act or under Rule 37 of Tamilnadu Co-operative Societies Rules, which provisions were applicable to Members only. The respondents stated that under the bye- laws, there were no specific provisions for affording opportunity for removal of the Associate Member. The respondents further stated that the petitioner was dismissed from services of Tata Communications Limited on 16.10.2021 for the misconducts committed by her and hence under Section 23(4) of the Tamil Nadu Co-operative Societies Act, she could not claim to become a member of Co-operative Society in any form, including as an associate member or as a share holding member. The respondent further stated that the petitioner admitted that she was terminated from service as per bye-law, and therefore, the contention of the petitioner that she was removed vindictively was untenable. The respondent asserted that the petitioner was removed only because she ceased to be an employee