Case Note & Summary
The case involves five retired employees of the Irrigation Department of the Government of Maharashtra who were members of Sinchan Karmachari Sahkari Patsanstha Ltd., a Salary Earners' Credit Co-operative Society registered under the Maharashtra Co-operative Societies Act. The petitioners had also been elected to the Board of Directors of the society. After their retirement, a complaint was made alleging they continued to function as directors despite retirement. The Assistant Registrar of Co-operative Societies passed an order on 18.11.2019 removing them from the posts of Director. On appeal, the Divisional Joint Registrar set aside that order. Subsequently, the Taluka Co-operative Election Officer passed an order on 12.11.2022 directing deletion of the petitioners' names from the voters list for the society's elections on the ground that they had retired from service. The petitioners challenged this order by way of a writ petition. The court examined the bye-laws of the society and found that they did not contain any provision for cessation of membership upon retirement. The court held that membership of a Salary Earners' Credit Co-operative Society is not co-terminus with employment and that retirement does not automatically terminate membership unless the bye-laws so provide. The court quashed the impugned order and directed that the petitioners' names be included in the voters list. The court also directed that the election process may proceed but subject to the inclusion of the petitioners' names.
Headnote
A) Co-operative Law - Membership - Salary Earners' Credit Co-operative Society - Membership not co-terminus with employment - The issue was whether retired employees can continue as members and voters of a Salary Earners' Credit Co-operative Society. The court held that membership is governed by the bye-laws of the society and retirement does not automatically terminate membership unless the bye-laws so provide. The impugned order deleting names from voters list was set aside. (Paras 2, 6-8) B) Co-operative Law - Voters List - Deletion of names - Retirement - The Taluka Co-operative Election Officer deleted names of petitioners from voters list solely on ground of retirement. The court held that such deletion was without authority as the bye-laws did not provide for cessation of membership upon retirement. The order was quashed. (Paras 3, 6-8)
Issue of Consideration
Whether an employee can continue as member of a Salary Earners' Credit Co-operative Society and whether his name can be continued in voters list after his retirement from service.
Final Decision
The court allowed the writ petition, quashed the order dated 12.11.2022 passed by the Taluka Co-operative Election Officer, and directed that the names of the petitioners be included in the voters list. The election process may proceed but subject to inclusion of petitioners' names.
Law Points
- Membership of Salary Earners' Credit Co-operative Society is not co-terminus with employment
- Bye-laws of the society govern membership eligibility
- Retirement does not automatically terminate membership unless bye-laws so provide
