Joby P.Joy vs Joint Registrar Of Cooperative Societies (General), Wayanad

Sathish Ninan, J

Clause-7 of the bye-laws of the Pulppally Service Co-operative Bank was amended in the year 2015 enhancing the share value of 'A' class members from `100/- to `500/-. The amendment was approved by the Registrar on 10.02.2016. The petitioner in W.P.(C) No.19964/2021 is a member of the Society. According to him, there was no notification pursuant to the amendment, calling for payment of additional share value and hence he has not paid the same. He contends that there are various other members who were also unaware of the enhancement of the share value and the requirement to pay the same in order to retain the 'A' class membership. Opportunity may be granted to the petitioner and other members to make up the share value and to continue the membership, prays the petitioner.

WP(C) No.14111/2021 is filed by another member of the Society seeking for conduct of election to the Managing Committee of the Society.

Heard. Perused the counter affidavits.

Section 19 of the Kerala Co-operative Societies Act reads thus:-

"19: Member not to exercise rights till due payment made:-(1) No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society, as may be prescribed by the rules or the bye-laws."

Therefore, unless the existing 'A' class members pay the enhanced share value they will not be entitled to exercise the privileges of such class members including the right to vote. In Kadakam Service Co-operative Bank Ltd. v. Narayana Bhat [2004 (2) KLT 179] a Division Bench of this Court held:-

"Since the first respondent has not been removed from the membership either under Rule 16(3) or under Rule 16(4) the bank could not have refused to accept the difference in share value, even though it was submitted by him belatedly."

The Society is under an Administrative Committee since the year 2018. Election needs to be conducted without delay. It is only proper that the existing members be put on notice regarding the enhancement of share value and be given an opportunity to have the enhanced value paid, if they so desire. This needs to be done prior to taking steps for conduct of election. Rule 28 of the Co-operative Societies Rules reads thus:

"28. Restriction on the right to vote at the election:-No member of a society shall be eligible to vote at the meeting fixed for any election to the committee of that society, unless 60 days prior to the date of such meeting he acquires the number of shares for membership as may be provided in the bye-laws of the society of which he is a member."

Going by the rule, in order to avail the right to vote, the enhanced share value must be paid at least 60 days prior to the date of election.

In the light of the above it is ordered that, the 4th respondent shall cause publication to be effected in two Malayalam Dailies having circulation in the area of operation of the Society, notifying the enhancement of share value and calling upon them to have the same paid within 30 days from the date of publication, for retaining the 'A' class membership. On expiry of thirty days from the date of such notification, the 4th respondent shall take steps for conduct of election without any further delay. The election shall be notified to be held on a date after 60 days therefrom.

Writ petitions are disposed of as above.