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2012 (4) TMI 277 - DELHI HIGH COURTRegulations of Membership of AEPC - Whether an appellant Company incorporated under Section 25 of the Companies Act, 1956 is entitled to have two kinds of membership - the "Member Exporters" having a right to elect and to be elected as office bearers of the appellant whereas the "Registered Exporters" have no such right – Writ petition by exporters who are unable to meet the “Regulations of Membership" - Learned Single Judge allowed the writ petition by removing such classification of membership and vesting the right of voting - mentioning that appellant owes its existence to the Exim Policy which provides for formation of Export Promotion Council (EPC) requiring all exporters to become members of such EPC - appellant has contended that does not owe its existence to the Exim Policy as the appellant was incorporated by leading garment exporters associations before the Foreign Trade (Development & Regulation) Act came into force - that the appellant is not a monopolistic body as perceived by the Learned Single Judge - that the Government itself had with effect from 31st March, 2000 deliberately repealed the requirement of democratization in the EPCs from the Exim Policy and which shows that it was not the requirement of the Exim Policy – Held that:- Once the Model Bye- Laws provide for two kinds of membership, a right to membership can be read only as a right to non-voting membership till the member qualifies to become a voting member. The Exim Policy has to be read as a whole -The concepts of "Associate Member" without voting rights and of placing restrictions on the right to vote were upheld. Restriction on the right to vote provided with the avowed object of better welfare and convenience of regular practitioners directly concerned with the day-to-day affairs is Constitutional and valid - if no such restrictions were to be placed the possibility of a rival industry/trade snatching away the management of an EPC to destroy the same also cannot be ruled out – in favour of appellant company - the appellant which is a Company incorporated under Section 25 of the Companies Act, 1956 is entitled to have two kinds of memberships as aforesaid.
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