Chandrawarnum Et Al. V. The Public Service Mutual Provident Association

 Present : Mr. Justice Wendt and Mr. Justice Middleton.

CHANDRAWARNUM et al. v. THE PUBLIC SERVICE
MUTUAL PROVIDENT ASSOCIATION, COLOMBO.

D. C, Colombo, 22,113.

Public Service Mutual Provident Association-Failure to pay monthly contributions-Ipso facto ceasing to be a member-Subsequent payment, effect of-Rules of the Association-Resolution authorizing payment-Estoppel-Ultra vires-Evidence Act, s. 115.

    Rule 16 of the rules of the Public Service Mutual Provident Association enacts as follows:-

    " Instalments due on account of loans and advances made under rules 12 and 14, and the interest due thereon as well as the calls falling due . under rule 10, shall be deducted from the salaries of members on pay day by the Pay Clerk; but the responsibility of seeing that the amounts due on these accounts, as well as the monthly contributions, are duly deducted and remitted to the Treasurer shall nevertheless rest on the members themselves. Should any amount due by a member as monthly contribution or as instalment or interest on account of such loans or advances not be remitted to the Treasurer within fifteen days after it shall fall due, such member shall be liable to, and shall pay a fine not exceeding one-fourth of his monthly contribution for each default, and if he shall make default for three consecutive months, or neglect to pay the fine or fines imposed on him, he shall ipso facto cease to be a member of the Association, and shall absolutely forfeit all claim to the whole amount to his credit in the books of the Association, and such amount shall thereupon merge into the general fund."

    Held, that this rule was not ultra vires of the Association.

    Where a member of the Association was at the time of his death in arrears of fifteen monthly contributions and also of eleven calls for donations, but his name had not been removed from the books of the Association,-  

     Held, that he ipso facto ceased to be a member of the Association, notwithstanding that his name had not been removed from the books of the Association.

    Where the Association at its annual general meeting passed a resolution authorizing the payment of the contribution and donation due, under the rules of the Association, to the family of the said member, but the Committee of Management subsequently refused to make such payment,-

    Held, that the resolution passed at the general meeting was ultra vires and null and void, and did not estop the Association from refusing payment afterwards.

    WENDT J.-The Association, being purely the creature of the Ordinance. is bound by the rules made in the manner prescribed by

 the Ordinance. It has no power to make a compassionate allow race or to grant anything to the widow or children of a person who had once been a member.

    MIDDLETON J.-It is absolutely necessary that persons dealing; with moneys of a Provident Association in a fiduciary capacity should do so strictly according to the law governing such Associations and should avoid being led into illegality by sentiment.

THIS was an action by the plaintiffs, the widow and children of the late Anthony Santiago Chandrawarnum, Mudaliyar, who died on 14th March, 1902, to recover from the defendant Association a sum of Rs. 1,536.89, to which, the plaintiffs alleged, they became entitled under the rules of the said Association on the death of the said Anthony Santiago Chandrawarnum, Mudaliyar. The plaintiffs further alleged that at the time of his death the said Anthony Santiago Chandrawarnum was a member of the said Association; that on 8th August, 1902, the Committee of Management of the Association acknowledged the said sum, less a sum of Rs. 20 which was to be deducted by way of fine, to be due to the plaintiffs, and informed the plaintiffs that the same would be paid, and that the-defendant Association by its resolution of the 3

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