Discuss at least four Case laws on Membership.
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Several case laws in India have contributed to shaping the legal framework governing cooperative society membership. These cases have dealt with various aspects of membership eligibility, rights, and liabilities within cooperative societies. Here are four notable case laws on membership:
Nandlal Wasudeo Badwaik v. Laxminarayan, 1991:
In this case, the Supreme Court of India clarified the concept of "ordinary resident" in the context of membership eligibility for cooperative societies. The court held that to be considered an ordinary resident within the meaning of cooperative society bylaws, a person must reside permanently or habitually in the locality where the society operates. The case emphasized the importance of residency criteria in determining membership eligibility and preventing non-residents from acquiring membership rights in local cooperative societies.
B. M. Shankaraiah v. State of Karnataka, 2008:
This case addressed the issue of joint membership in cooperative societies. The Karnataka High Court held that joint membership in a cooperative society is permissible only when the bylaws of the society expressly provide for it. The court emphasized that joint membership cannot be inferred merely from joint ownership of property or joint operation of a business. The case underscored the need for clear provisions in the cooperative society's bylaws regarding joint membership to avoid ambiguity and disputes among members.
A. B. Mohamed & Ors. v. The Registrar of Coop. Societies & Anr., 2012:
In this case, the Kerala High Court considered the validity of a cooperative society's decision to terminate the membership of certain members. The court held that while a cooperative society has the authority to terminate membership for reasons specified in the bylaws or under the law, such termination must be done in accordance with the principles of natural justice. The court emphasized that members must be given a fair opportunity to present their case and defend themselves before their membership rights are revoked by the society.
Sh. Shiv Prasad v. Registrar of Coop. Societies & Ors., 2018:
This case dealt with the expulsion of a member from a cooperative society on grounds of misconduct. The Punjab and Haryana High Court held that while a cooperative society has the authority to expel a member for misconduct or violation of bylaws, such expulsion must be supported by evidence and conducted in accordance with the principles of natural justice. The court emphasized that the decision to expel a member must be taken by the society's governing body after providing the member with a fair opportunity to be heard and defend themselves against the allegations.
These case laws illustrate the significance of membership rights, eligibility criteria, procedural fairness, and adherence to bylaws in the functioning of cooperative societies. They provide valuable guidance to cooperative societies, members, and regulatory authorities in interpreting and applying the legal principles governing membership within the cooperative movement.