Society cannot enrol new members — SC

"A cooperative society is expected to function in a democratic manner through an elected committee of management and that committee of management is empowered to enrol new members," said a Division Bench comprising Justices S Rajendra Babu and Y K Sabharwal.

Justice Babu, writing the judgement for the bench, said enrolment of new members would involve alteration of the composition of the society itself and such a power should be exercised by an elected committee rather than by an administrator or committee appointed by the registrar while the committee of management was under suspension.

The bench said this was the intention of the legislation even though the law empowered the administrator or the committee appointed by the registrar of societies to "exercise all or any of the functions" of the elected management.

Justice Babu said whether an authority was discharging a function or exercising a power would have to be ascertained with reference to the nature of the function or the power discharged in the background of the enactment.

He said it could not be ascertained by merely indulging in an exercise on semantics in ascertaining the meaning of the expression have "power to exercise all or any of the function…".

The bench said the apex court had earlier said that the administrator or a special officer, appointed during the suspension of the elected management of a society, could exercise powers and functions only as may be required in the interest of the cooperative society.

"In that context, it was stated that he should conduct elections as enjoined under law, that is, he is to conduct elections with the members as on the rolls and by necessary implications, he is not vested with power to enrol new members of the society," it said.

Justice Babu said when the committee of management of the cooperative society committed any default or is negligent in the performance of the duties imposed under the acts, rules and by-laws, which is prejudicial to the interest of the society, the same was superceded and an administrator or a committee was imposed thereon.

"The duty of such a committee or an administrator is to set right the default, if any, and to enable the society to carry on its functions as enjoined by law," he said.