'Administrators cannot enrol coop. society members'

NEW DELHI, MAY 28. In a ruling applicable to thousands of Cooperative Societies, the Supreme Court has held that the administrator of such societies has no power to enrol new members, which is the sole prerogative of the elected committee of management.

While dealing with a case under the Kerala Cooperative Societies Act, the court said ``the administrator or committee, appointed while the management of the society is under suspension, cannot have the power to enrol new members''.

``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 Mr. Justice Rajendra Babu and Mr. Justice Y.K. Sabharwal.

Mr. Justice Babu, writing the judgment 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.

Mr. 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.

Mr. 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society, the same was superceded and an administrator or a committee was imposed thereon.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.

- PTI

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