High Court of Bombay

Laxman Dattatray Jadhav and Ors. Vs. Taluka Co-operative Election Officer and the Assistant Registrar Co-Operative Societies and Ors.

MANU/MH/4050/2022

22.11.2022

Trusts and Societies

After retirement, an employee can continue only as a nominal member of a cooperative society and is not entitled to vote

The issue that has attracted the attention of present Court is, whether an employee can continue as member of Salary Earners' Credit Co-operative Society and whether his name can be continued in voters list after his retirement from service.

The issue arises on account of order passed by the Taluka Co-operative Election Officer and the Assistant Registrar of Co-operative Societies, directing deletion of names of Petitioners from voters list on account of their retirements from service.

The concept of nominal membership after retirement of an employee is recognized by the Act. Thus, objective behind registration of a salary earners' credit cooperative society together with the provision under Section 144 of the Maharashtra Co-operative Societies Act, 1960, would indicate that an active member can continue to remain in a capacity as a nominal member after his retirement. In his capacity as a nominal member, he can make voluntary deposits with a salary earners' credit cooperative society. However, under Sub Section 8 of Section 27 of the Act of 1960, such a nominal member does not enjoy the privilege of voting. After retirement of an employee, he can continue only as a nominal member of a salary earners' credit cooperative society and he is not entitled to vote.

A retired employee does not earn any salary and cannot remain an active member of the Salary Earners' Credit Co-operative Society. The interpretation sought to be placed by Petitioners which leads to absurdity will have to be avoided and the one that subserves the objective behind establishment of such society needs to be upheld. The Election Officer has therefore rightly held the petitioners to be nominal members of the Society. There is no error committed by the Election Officer while passing the impugned order. Petition dismissed.

Tags : Retirement Continuation Membership

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