High Court of KeralaSingle JudgeWrit petition dismissed; order of removal upheld.

Rajan.K. v. Joint Registrar of Co-operative Societies (G) and Central Government Employees & Workers Co-operative Credit Society Ltd.

Case / Petition Number:WP(C) No. 31797 of 2023

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Sathish Ninan, J.
Judgment Date
2023-09-30
Court Decision / Holding
The order of the first respondent removing the petitioner from membership is in accordance with law and warrants no interference. The writ petition is dismissed.
Final Disposition
Writ petition dismissed; order of removal upheld.

Parties to the Case

Appellants / Petitioners

  • Rajan.K.

Respondents

  • Joint Registrar of Co-operative Societies (G)
  • Central Government Employees & Workers Co-operative Credit Society Ltd.
  • Ambares Nair R.S.

Legal Representation & Advocates

Counsels for Petitioners

  • • B.S. Swathi Kumar
  • • Harisankar N Unni

Counsels for Respondents

  • • Sheeja C.S.
  • • T. P. Pradeep
  • • P.K. Sathees Kumar
  • • Minikumary M.V.
  • • R.K. Prasanth
  • • Jijo Joseph

Case Synopsis & Summary

Rajan.K., a Central Government employee, was admitted as a member of the Central Government Employees & Workers Co-operative Credit Society Ltd. within the Trivandrum District under the society’s bye-laws which require one year of continuous service. Subsequently, he was transferred to Kochi, outside the Society’s area of operation. The third respondent moved the Joint Registrar for removal from membership on the ground that the member no longer satisfies the eligibility criteria by working outside the territorial jurisdiction. The petitioner contended that transfer beyond the area of operation does not amount to cessation of membership, since Clause 11 of the bye-laws enumerates only death, resignation, expulsion, and retirement, and that membership, once acquired, cannot be lost merely due to relocation. The Court examined Rule 16 of the Co-operative Societies Rules, 1969, noting that (i) Rule 16(1)/(2) regulate admission, (ii) Rule 16(3) permits removal of a member who becomes ineligible, and (iii) Rule 16(4) allows the Registrar to declare cessation with opportunity of hearing. The Court held that a member who loses eligibility by transferring beyond the area ceases to satisfy bye-law requirements and can be removed under Rule 16(3)/(4). It concluded the Registrar’s removal order was legal and refused to interfere, dismissing the writ petition. The decision rests on the interpretation that transfer outside the area of operation triggers ineligibility under the bye-laws and rules, justifying removal.

Provisions of Law Cited

Co-operative Societies Rules, 1969, Rule 16(1)(c)Rule 16(3)Rule 16(4)Clause 11 of the bye-laws

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that eligibility criteria in the bye-laws govern membership; transfer and shifting of residence outside the Society’s area of operation is not listed as cessation of membership. Clause 11 of the bye-laws mentions only death, resignation, expulsion, and retirement; once membership is acquired, transfer beyond the territorial jurisdiction should not result in loss of membership. Rule 16(3)/(4) empower removal when a member becomes ineligible. The absence of explicit reference to transfer within Clause 11 cannot negate removal under Rule 16. The argument emphasizes that membership continuity should be governed by the eligibility criteria and statutory rules rather than an automatic cessation under non-listed grounds.

Contentions of Respondents

The petitioner continues to be employed outside the Society’s area of operation (Trivandrum District). Eligibility for membership requires within the Trivandrum District and one year of service. When a member ceases to meet eligibility, Rule 16(3) empowers the Committee or Registrar to remove him under due process (Rule 16(4) provides Registrar’s order). The absence of an express transfer contingency in Clause 11 is not fatal to removal; the Society’s objective to confine membership to its area of operation justifies termination upon loss of eligibility.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Part Time Administrator Adat Farmers Service Co-operative Bank Ltd. No.R 689 and Another v. Vipin K. HariILR 2023 (1) KER 121PositiveCited as authority supporting the proposition that a member who loses eligibility can be removed under Rule 16(3).

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Extracted Judgment Text

Exact text extracted from official judgment records.

**C. R.** **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** **THE HONOURABLE MR. JUSTICE SATHISH NINAN SATURDAY, THE 30[TH] DAY OF SEPTEMBER 2023 / 8TH ASWINA, 1945** **WP(C) NO. 31797 OF 2023** ## **PETITIONER:** RAJAN.K. AGED 56 YEARS, S/O K. KRISHNAN NAIR, SWARAMANJERI, ANJUMUKKU COVIL ROAD, MUTTADA.P.O. THIRUVANANTHAPURAM, PIN - 695025 BY ADVS. B.S.SWATHI KUMAR HARISANKAR N UNNI ## **RESPONDENTS:** 1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G) JAWAHAR SAHAKARANA BHAVAN, JAGATHY, THIRUVANANTHAPURAM, PIN - 695014 2 THE CENTRAL GOVERNMENT EMPLOYEES & WORKERS CO-OPERATIVE CREDIT SOCIETY LTD.NO. T. 1413, USRA17, UDARASIROMANY ROAD, VAZHUTHACAUD, THIRUVANANTHAPURAM REPRESENTED BY ITS PRESIDENT, PIN - 695010 ## *** ADDL. RESPONDENT NO.3** ADDL. R3 AMBAREESH NAIR R.S., AGED 32 YEARS, S/O SREEKUMAR, OFFICE OF GARRISON ENGINEER (ARMY), THIRUMALA POST, TRIVANDRUM-695006. ## *** [ADDL. RESPONDENT NO.3 IS IMPLEADED AS PER ORDERS OF THIS COURT DATED29.09.2023 IN I.A. NO.1/2023].** BY ADVS. SMT.SHEEJA C.S., SR. GOVT. PLEADER T.P.PRADEEP P.K.SATHEES KUMAR MINIKUMARY M.V. R.K.PRASANTH JIJO JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **C. R.** ## **SATHISH NINAN, J.** **= = = = = = = = = = = = = = = = = = W.P.(C) No.31797 of 2023** **= = = = = = = = = = = = = = = = = = Dated this the 30[th] day of September, 2023** ## **J U D G M E N T** Order under Rule 16 (4) of the Co-operative Societies Rules, 1969, removing the petitioner from the membership of the second respondent Society, is under challenge in this writ petition. 2. As per the bye-laws of the Society, any employee of a Central Government establishment situated within Trivandrum District, who has completed one year continuous service, is entitled to be a member of the Society. On satisfaction of the condition as above, the petitioner acquired membership in the Society. Later, the petitioner was transferred to Kochi. The additional third respondent moved the first respondent – Joint Registrar, for removal of the petitioner from the membership contending that, since the petitioner is not working within the area of operation of the Society viz. ## **W.P.(C) No.31797 of 2023** -: 2 :- Trivandrum District, he has lost his eligibility for membership. 3. I have heard Sri.Swathi Kumar B.S., learned counsel for the petitioner, Sri.T.P.Pradeep, the learned counsel for the third respondent, and Smt.Sheeja C.S., the learned Senior Government Pleader. 4. The fact that the petitioner is presently employed beyond Trivandrum District, the area of operation of the Society, is not in dispute. 5. The contention of the petitioner is that, the bye-law of the Society specifically prescribe the conditions under which a person ceases to be a member. Transfer and shifting of residence beyond the area of operation of the Society is not a ground mentioned therein for cessation of membership. Once membership has been acquired, the transfer of the member to any place beyond the area of operation of the Society does not result in losing of membership, it is contended. ## **W.P.(C) No.31797 of 2023** -: 3 :- 6. The bye-laws does not prescribe that membership ceases if a member is transferred beyond the area of operation of the Society. Clause 11 of the bye-laws reads thus:- _“11. A person ceases to be a member(i) on death; (ii) when his resignation is accepted by the Managing Committee; (iii) on expulsion (iv) when he retires from service._ _A past member shall be liable for the debts due by the society on completion of repayments of the existing liability.”_ However, for reasons given hereunder, I am unable to uphold the contention of the petitioner that the transfer and consequential employment of a member beyond the area of operation of the Society does not result in cessation of membership. 7. Rule 16 stipulates the conditions to be complied with by a person for admission as a member. Rule (1)(c) requires fulfillment of the conditions in the Act, Rules, and bye-laws of the Society. In the case at hand, ## **W.P.(C) No.31797 of 2023** -: 4 :- the bye-laws imposes two conditions for eligibility for membership viz. (i) he must be an employee in a Central Government establishment within the Trivandrum District and (ii) he has completed one year continuous service. The above is the eligibility criteria for membership. The Society is formed to cater the needs of the employees within its area of operation - Trivandrum District. When a member is transferred beyond the territorial jurisdiction of the Society, he ceases to satisfy the eligibility criteria to be a member that is, he no more fulfills the requirement in the bye-law to be a member of the Society. 8. In terms of Rule 16(3) and (4), when a member becomes ineligible for continuance of membership, he is liable to be removed by the Managing Committee of the Society or by the Registrar. The provisions read thus: **W.P.(C) No.31797 of 2023** -: 5 :- _**16. Conditions to be complied with for admission for membership.—** (1) xxxxx_ _(2) xxxxx_ _(3) Where a person already admitted to membership is seen to have been ineligible for membership at the time he was so admitted as a member or if he subsequently becomes ineligible for membership the Committee of the Society may remove the person from membership after giving him an opportunity for making his representation if any, and the person concerned shall thereupon cease to be a member of the society._ _(4) Where a member of a society becomes ineligible to continue as such, the Registrar may of his own motion or on a representation made to him by any member of the society or by the financing Bank, by an order in writing declare that he has ceased to be a member of the society from the date of his order. The Registrar shall give such person an opportunity to state his objection, if any, to the proposed action and if the person wishes to be heard, he shall be given an opportunity to be heard before passing an order as aforesaid._ That when the conditions envisaged in Rule 16(1) is violated, such member is liable to be removed under Rule 16(3), has been held by Division Bench of this Court in ## **W.P.(C) No.31797 of 2023** -: 6 :- _**Part Time Administrator Adat Farmers Service Co-operative Bank Ltd. No.R 689 and Another v. Vipin K. Hari (ILR 2023 (1) KER 121).**_ 9. The petitioner, having lost the eligibility criteria to be a member, he becomes ineligible to continue as a member. The Committee having failed to take steps for removal from membership, it was within the domain of the Registrar to act on the complaint of the third respondent and to have initiated steps for removal of the petitioner from the membership. The action of the first respondent has due sanction of law. As held above, the petitioner being presently working beyond the area of operation of the Society, has lost the eligibility criteria to be a member and he was rightly removed from the membership. 10. As regards the contention of the petitioner that the bye-laws of the Society does not contemplate ## **W.P.(C) No.31797 of 2023** -: 7 :- for cessation of membership on a member being transferred beyond the area of operation of the Society, it is to be noticed that, what Clause-11 of the bye-law provides for is, cessation of membership on death, resignation, expulsion and retirement. Such cessation is automatic and would not generally require any further declaration. However, when a member loses his eligibility criteria mandated under the bye-laws for membership, it is a case which falls within the Rule 16(3) and (4) of the Rules where a member becomes ineligible for membership and requires a declaration or an order of removal from membership. Such member is liable to be removed from the membership. Therefore, the non-mentioning of such a contingency in Clause-11 of the bye-laws is of no consequence. ## **W.P.(C) No.31797 of 2023** -: 8 :- The order of the first respondent removing the petitioner from membership is in accordance with law and warrants no interference. Writ petition fails and is dismissed. Sd/- **SATHISH NINAN JUDGE** kns/- //True Copy// P.S. to Judge ## **APPENDIX OF WP(C) 31797/2023** PETITIONER EXHIBITS |Exhibit P1|TRUE COPY OF THE RELEVANT PORTION OF THE BYE-| |---|---| ||LAW OF THE 2ND RESPONDENT.| |Exhibit P2|TRUE COPY OF THE NOTICE NO. C.S. 8437/2022| ||DATED 25-7-2023 ISSUED BY THE 1ST RESPONDENT.| |Exhibit P3|TRUE COPY OF THE EXPLANATION SUBMITTED BY THE| ||PETITIONER BEFORE THE 1ST RESPONDENT DATED| ||5-8-2023| |Exhibit P4|TRUE COPY OF THE EXPLANATION SUBMITTED BY THE| ||PETITIONER BEFORE THE 1ST RESPONDENT DATED| ||19-8-2023| |Exhibit P5|TRUE COPY OF THE NOTICE NO. C.S. 8437/2022| ||DATED 8-8-2023 ISSUED BY THE 1ST RESPONDENT.| |Exhibit P6|TRUE COPY OF THE JUDGMENT IN W.P.(C)NO.| ||28662/2023 DATED 5-9-2023| |Exhibit P7|TRUE COPY OF THE ORDER NO. C.S.NO. 8437/2022| ||DATED 21-9-2023 ISSUED BY THE 1ST RESPONDENT.| -----