LAKSHMANAN v. VARKALA CANE INDUSTRIES CO-OPERATIVE SOCIETY LTD
1981-09-04
T.CHANDRASEKHARA MENON
body1981
DigiLaw.ai
Judgment :- 1. Whatever be the procedural defects in effecting the amendments to the bye laws of the Society in the matter of raising the share capital and also enhancing the share value as such in view of the registration of the amendments on 28-12-1979 by the Registrar of Industries Co-operative Societies, not only have the amendments come into force but no member of the Society is now entitled to question the validity of the same on account of any procedural defect in the matter of holding the meeting of the general body like insufficiency or impropriety of the notice issued for the meeting. The law on the matter has been discussed at length in Venkita Subba Reddiar v. Registrar of Co-opertive Societies (A1R.1954 Madras 955) Justice Rajagopala Ayyangar pointed out in that case that the effect of registration of amended bye law is to prevent the question with regard to any antecedent irregularity in the passing of any bye law or amendment from being agitated in any court. The learned Judge said that the principles that can be ascertained from English cases on analogous statutory provisions is that when there is an official approval or certification of amendments to rules or bye laws as per a statutory provision, such certification or approval would prevent an enquiry into the regularity of steps taken to pass the bye-laws or the rules as the case may be. No doubt the same will not prevent an investigation into the validity of the rules if it is contended that the rules are ultra vires. Therefore, I overrule the contentions raised in respect of the procedural illegality or irregularity in the matter of passing the amendments. 2. However also hold that persons like the petitioner would not have ceased to become members of the Society on the basis of Ext. P3. Counsel for the contesting respondents, Rl and R2 was not able to point out to any statutory provision or bye law of the Society by which persons could cease to be members as indicated in Ext. P3. But at the same time, it would be wrong to allow such persons to exercise the privileges of the members of the Society if they fail to pay the share price as enhanced by the amendment See S.19. 3. In the circumstances, I will issue a direction that Ext.
P3. But at the same time, it would be wrong to allow such persons to exercise the privileges of the members of the Society if they fail to pay the share price as enhanced by the amendment See S.19. 3. In the circumstances, I will issue a direction that Ext. P3 will have have no legal validity but the petitioner and persons similarly placed can exercise privileges of the membership of the Society concerned by payment of the additional share value of Rs 5/- each which they should pay on or before 5-10-1981. I do not think that it is necessary to go into the other questions raised in the 0 P. 0. P. is disposed of as above No costs .