TMI Blog1997 (3) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety deposited initially a sum of ₹ 8,000 and thereafter different sums of money on different dates, in all Rs, 3,35,015 by 20th of June, 1991. While he was a member of bronacharaya Co-operative Group Housing Society, he also got himself enrolled as a member of another Society called Tribal Co-operative Housing Society Ltd, on 29th of November, 1983, but later on he resigned from the said Tribal Co-operative Housing Society Ltd. on 7.6.1991. The Registrar, Co-operative Societies issued a notice to the appellant on 22nd October, 1992 in exercise of his powers under sub-rule (4) of Rule 25 of the Delhi Co-operative Societies Rules, 1973 (hereinafter referred to as 'Rules') stating therein that the appellant could be enrolled as a member of the Tribal Co-operative Housing Society Ltd. by filing a false affidavit and declaring that neither he nor his wife nor any of his dependent relations has been a member of any other House Building Co- operative Societies and thus has incurred the disqualification under Rule 25(l)(c)(iii) of the Rules and consequently ceases to be a member of the society under sub-rule (2) of Rule 25. The Registrar called upon the appellant to reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power on the Registrar to give a written requisition to either or both the co-operative societies for cessation of the membership, would become inoperative, and therefore, efforts should be made for harmonious construction whereunder both the provisions can operate. Mr. Bobde also argued that under Rule 25(1) the embargo upon a person to become a member of a co-operative society is there if the said person or his spouse or any of his dependent children is a member of any other housing society. The disqualification in question is thus attached to becoming a member of co-operative society if he is already a member of another society. Under sub-rule (2) of'Rule.25 a deemed cessation accrues obviously in relation to a society in respect of which the disqualification is attached under sub-rule (1) of Rule 25 and judged from this angle the appellant could be said to have ceased to be a member to the Tribal Co- operative Housing Society Ltd. and not from Dronacharaya Co-operative Group Housing Society. Learned counsel appearing for the respondents, however, submitted that Chapter 3 of the Rules contains provisions indicating the conditions to be complied with for becoming a member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... body may in pursuance of the powers conferred on it in that behalf from time to time pass, and in the case of nominal, associate, by an officer of the society authorised in that behalf by the committee; (iii) he has fulfilled all other conditions laid down in the Act, the Rules and the Bye-laws; and (iv) in case of a firm, company or body corporate, society registered under the Societies Registration Act, 1860, a public trust registered under any law of the time being in force relating to registration of public trust or a local authority, the application for membership is accompanied by a resolution authorising it to apply for such membership, and the sanction of the Lt. Governor has been accorded. 25. Disqualification for Membership. (1) No person shall be eligible for admission as a member of a co-operative society if he - (a) has applied to be adjudicated an insolvent or is an undis-charged isolvent , or (b) has been sentenced for any offence other than an offence of a political character or an offence not involving moral tur-pitude and dishonesty and a period of five years has not elapsed from the date of expiry of the sentence; (c) in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28. Prohibition of Membership in Two Co-operative Societies. No individual, being a member of a primary co-operative society of any class shall be a member of any other co-opera-tive society of the same class without the general or special permission of the Registrar, and where an individual has become a member of two co-operative societies of the same class either or both of the co-operative society shall be bound to remove him from membership upon written requisition from the Registrar to that effect. A conjoint reading of the aforesaid provisions would make it clear that Rule 24 provides the conditions to be complied with by a person for being admitted as a member of a co-operative society. Rule 25 enumerates the disqualifications of a person for becoming a member of a co-operative society. Sub-clause (c) of Rule 25(1) deals with the disqualifications of a person in case of a housing society, clause (iii) of Rule 25(l)(c) provides that the said person or his spouse or any of his dependent children if is a member of any other housing society then he can't become a member of another housing society unless permitted by the Registrar, Sub-rule (2) of Rule 25 provides for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... become a member of two co-operative societies of the same class which obviously is a disqualification under Rule 25 then he has the discretion to direct removal of the said individual from the membership of either or both the co-operative societies. If sub-rule (2) of Rule 25 is interpreted to mean that deemed cessation of the person conceraed from membership of both the societies then the question of discretion of the Registrar under Rule 28 will not arise. If the interpretation given by the Registrar to sub-rule (2) of Rule 25 as well as the contention raised by the learned counsel for the respondents is sustained then the said sub-rule will be at loggerhead with Rule 28. On the other hand, if sub-rule (2) is interpreted to mean that the deemed cessation is in relation to the society in respect of which the person concerned incurs the disqualification then both sub-rule (2) as well as Rule 28 would have its play. Rule 28 in our considered opinion cannot be held to be otiose and must be allowed to have its full play. In this view of the matter the only way by which sub-rule (2) of Rule 25 and Rule 28 can be harmoniously construed is to construe sub-rule (2) to Rule 25 to mean tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the registrar had the power under Rule 28 to direct removal of membership from either of the societies or the both the impugned order passed by the Registrar may be construed to be one under Rule 28. Though prima facie the aforesaid contention may be attractive but it does not sustain a deeper scrutiny. In the case in hand a notice to show cause was issued by the Registrar in exercise of power under sub-rule (4) of Rule 25 indicating that on account of the disqualification of the appellant incurred under Rule 25(l)(c)(iii) he has ceased to be member of both the societies under sub-rule (2) of Rule 25. The Registrar while issuing notice or while passing the impugned order has not chosen to exercise his discretion conferred under Rule 28 of the Rules. When a power has been conferred upon the Registrar under Rule 28 to decide as to Whether he would direct cancellation of the membership of the person concerned from any one of the two societies or the both when it comes to his knowledge that a person has become a member of two of the co-operative societies, then a corresponding duty is cast upon him to examine the circumstances under which the person concerned has become member of two s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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