JUDGMENTBY: WAN HAMZAH SCJ

(delivering the Judgment of the Court): The National Union of Bank Employees ("the Union") is a trade union registered under the Trade Unions Act. In 1964 the Union established the National Union of Bank Employees Benevolent Fund ("the Benevolent Fund"). Under Rule 4 of the Benevolent Fund Rules every member of the Union, whose subscriptions are not in arrears, shall automatically become a member of the Benevolent Fund. Rule 2A(1) of the Constitution and Rules of the Union provides as follows:

"The objects of the Union shall be to secure the complete organisation

of members of the executive, clerical and non-clerical staffs of all

commercial banks and their subsidiary finance companies in West

Malaysia as may be approved by the National Executive Council."

Rule 3(1) of the Constitution and Rules of the Union provides, inter alia, as follows:

"Any member permanent or temporary of the executive, clerical and

non-clerical staffs of any commercial bank in the Federation of Malaya

who is above 16 years shall be eligible for membership ..."

The appellants (hereafter referred to as the plaintiffs) were at the material times members of the Union. The first plaintiff was a founder member of the Union. The second plaintiff became a member in 1961 and the third plaintiff in 1958. The first plaintiff is an Assistant Officer in the Chartered Bank and the Second and the third plaintiffs are Staff Officers in the Hongkong And Shanghai Banking Corporation. They received a letter from the Union dated December 23, 1981 addressed to all officer-members of the Union, by which they were informed that Rule 2A(1) and Rule 3(1) of the Constitution and Rules of the Union have been amended by deletion of the word "executive", the effect of which is that the Union can have only clerical and non-clerical staff within its membership and all officer-members ceased to be members of the Union with effect from December 8, 1981, and the Union would not collect subscriptions from them with effect from that date. The plaintiffs were also informed that the Registrar of Trade Unions has registered the amendments.

The plaintiffs contend that the Union has no power to make such amendments to Rules 2A(1) and 3(1) and the amendments are ultra vires the Constitution and Rules of the Union and therefore null and void. They contend that even if the Union has power to make the amendments, they were made in contravention of section 40(1)(f) of the Trade Unions Act and Rule 25 of the Constitution and Rules of the Union in that they were made without secret ballot being taken to sanction the amendments. Section 40(1)(f) of the Trade Unions Act provides as follows:

"A trade union shall take a secret ballot to make a decision on any of

the following matters --

(f) amendment of rules where such amendment results in increasing the

liability of the members to contribute or in decreasing the

benefits to which members are entitled."

Rule 25 of the Constitution and Rules of the Union provides as follows:

"A secret ballot is required on the following matters subject to the

proviso laid down in Rule 3(1) herein:

(d) Amendment of Rules where such amendments result in increasing the

liability of the members to contribute, or in decreasing the

benefits to which members are entitled."

The plaintiffs further contend that the amendments were made in breach of the principle of natural justice in that the executive staff were not given an opportunity of being heard before the decision to terminate their membership was taken. Therefore they bring the action against the Union claiming:

(a) a declaration that their exclusion from the membership of the

Union is ultra vires, illegal and void;

(b) an injunction to restrain the Union from continuing to enforce

the exclusion or taking or continuing any s

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