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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: May 14, 20242024-05-14T16:01:13+05:30 2024-05-14T16:01:13+05:30In: Co-operation, Co-operative Law and Business Laws

Discuss at least four Case laws on Membership.

Discuss at least four Case laws on Membership.

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    1. Himanshu Kulshreshtha Elite Author
      2024-05-14T16:01:46+05:30Added an answer on May 14, 2024 at 4:01 pm

      Certainly, here are summaries of four significant case laws related to membership in cooperative societies in India:

      1. Life Insurance Corporation of India vs. Co-operative Central Bank Ltd. and Others (AIR 1968 SC 365):

        In this case, the Supreme Court of India ruled on the eligibility criteria for membership in cooperative societies. The dispute arose when the Life Insurance Corporation (LIC) sought to become a member of the Co-operative Central Bank Ltd. The cooperative's bylaws restricted membership to individuals and institutions engaged in agriculture and allied activities. The LIC argued that its activities indirectly benefited agriculture and thus qualified it for membership. However, the Supreme Court held that the cooperative's bylaws were clear and unambiguous regarding membership eligibility. Since LIC was not engaged in agriculture or allied activities as specified in the bylaws, it was not eligible for membership. This case underscored the importance of adhering to the eligibility criteria specified in the cooperative's bylaws for membership.

      2. Karnataka State Co-operative Apex Bank Ltd. vs. N. Narasimhamurthy and Others (AIR 2007 SC 1577):

        This case dealt with the expulsion of a member from a cooperative society. The respondent, a member of a cooperative society, was expelled from membership on grounds of misconduct and non-payment of dues. The respondent challenged his expulsion, contending that it violated the principles of natural justice and procedural fairness. The Supreme Court emphasized that while cooperatives are autonomous bodies, their actions must be fair, reasonable, and in accordance with the principles of natural justice. The Court held that the cooperative's decision to expel the member must be supported by evidence of misconduct and non-compliance with the cooperative's rules. The case highlighted the importance of adhering to due process and procedural fairness in matters related to membership expulsion.

      3. Jai Bhagwan and Others vs. State of Haryana and Others (AIR 2009 SC 1126):

        In this case, the Supreme Court addressed the issue of dual membership in cooperative societies. The appellants were members of multiple cooperative societies, which was challenged on the grounds of violating the principle of 'one member, one vote'. The Court held that while cooperative societies promote democratic principles, allowing members to hold dual memberships could lead to unfair concentration of voting power. The Court emphasized that individuals should be allowed to hold membership in only one primary cooperative society to ensure equitable representation and prevent monopolization of voting rights.

      4. State of Maharashtra vs. National Seeds Corporation Ltd. and Others (AIR 1990 SC 1878):

        This case concerned the interpretation of the term 'person' in the Maharashtra Cooperative Societies Act, 1960. The National Seeds Corporation sought membership in a cooperative society, arguing that it was a 'person' eligible for membership under the Act. However, the cooperative society contended that the term 'person' referred only to natural persons and not corporate entities. The Supreme Court interpreted the term 'person' in the context of the Act and held that it included both natural and artificial persons, such as corporations. This case clarified the scope of eligibility for membership in cooperative societies, affirming that corporate entities could qualify as members under certain conditions.

      These case laws highlight the importance of clear eligibility criteria, adherence to procedural fairness, equitable representation, and the interpretation of legal provisions in matters related to membership in cooperative societies.

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