CHANDIGARH LIC EMPLOYEES CO-OPERATIVE Vs. SECRETARY, COOPERATION, UNION TERRITORY, CHANDIGARH AND OTHERS

JUDGEMENT

(1.) The petitioner before the Court is "The Chandigarh LIC Employees Co-operative Urban Salary Earners Thrift & Credit Society Limited, Chandigarh" which was registered as a Cooperative Society with the Registrar Cooperative Societies UT, Chandigarh (RCS) on 30.07.1996.

(2.) It is the case of the petitioner in this petition filed under Articles 226/227 of the Constitution that certain difficulties were experienced in enforcing the decision taken by the Society and its Managing Committee after induction of retirees in recalling loans from them upon their retirement. It was felt necessary and expedient for the smooth running of the business of the Society to revert to the original eligibility conditions and qualification for membership by excluding pensioners, and no mala fide could be attributed in carrying out the amendment in the changed scenario.

(3.) To bring about the change, a General Body meeting of the petitioner-Society was called on 27.01.2001 through requisite notice dated 11.01.2001 to consider the agenda with regard to amending the bye-laws so as to exclude pensioners from membership by restituting the old eligibility clause. At that time, there were 15 pensioners on the strength of the society including the third respondent Zorawar Singh. The General Body carried the amendment and applied for and was granted approval of the amendment to the bye-laws by RCS by his covering letter dated 26.07.2001. The RCS approved the amendment to the bye-laws 1.5(iv) and 13(vii) and communicated the same to the petitioner vide letter dated 08.07.2002 (Annexure P-5). Consequent upon the amendment in the bye-laws, the petitioner-society returned the share money of the pensioners through cheques of Rs.10,000/- each. This was done in accordance with procedure prescribed under Section 10 of the Punjab Cooperative Societies Act, 1961 as applicable to the Union Territory, Chandigarh. Except Zorawar Singh all the other pensioners accepted cheques and raised no objection.