Kerala Co-operative Societies Rules | Transfer Beyond Society's Territorial Limits Valid Ground To Revoke An Individual's Membership: High Court

Justice Sathish Ninan observed that while the bye-laws did not mention transfer as a ground for ceasing membership, one's transfer beyond the Society's operational area affected their eligibility 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.”

The petitioner had approached the Court challenging an order issued under Rule 16(4) of the Co-operative Societies Rules which removed him from the membership of the second respondent Society.

Rule 16 mandates that employees of Central Government establishments within Trivandrum District, who have completed one year of continuous service, are eligible for membership. Clause 11 of the byelaws provides for cessation of membership of the society on death, resignation, expulsion and retirement.

The petitioner met these criteria and became a member of the Society. However, the petitioner was later transferred to Kochi. The additional third respondent requested the removal of the petitioner from membership, arguing that since he was no longer working within the area of the Society, he had lost his eligibility.

The Counsel for the petitioner contended that the bye-laws did not specify transfer as a reason for membership cessation, and once membership was acquired, transfer did not result in loss of membership.

The Court on an interpretation of Rule 16 held that, on being transferred to Kochi, the petitioner ceased to satisfy the eligibility criteria to be a member of the society. It held that when the petitioner lost the eligibility criteria to be a member, he also becomes ineligible to continue as a member.

The Court relying upon the Division Bench judgment in Part-Time Administrator Adat Farmers Service Co-operative Bank Ltd. & Anr v. Vipin K. Hari (2023) stated that when a person loses his eligibility to continue as a member as per Rule 16, he can be removed by the Managing Committee of the Society or by the Registrar.

Regarding Clause 11 of the bye-laws, the Court stated that it only provides for cessation of membership on death, resignation, expulsion and retirement. It noted that cessation of membership under Clause 11 was automatic and did not require further declaration.

The bench found that the petitioner lost his eligibility criteria mandated under the bye-laws for membership, that he has become ineligible and cannot continue as a member.

“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.”

Accordingly, the Court dismissed the writ petition.

Counsel for the Petitioner: Advocates B.S.Swathi Kumar Harisankar N Unni

Counsel for the respondents: Senior Government Pleader Sheeja C.S., Advocates T.P.Pradeep, P.K.Sathees Kumar, Minikumary M.V., R.K.Prasanth and Jijo Joseph

Citation: 2023 LiveLaw (Ker) 540

Case title: Rajan K v Joint Registrar Of Co-Operative Societies

Case number: WP(C) NO. 31797 Of 2023

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