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LL.B. (Three Years) Sem 3 Cooperative Law Apr 2025 Question Paper with Solutions

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Cooperative Law

Previous Year Question Paper with Solution

LL.B. (Three Years) · Sem 3

Apr 2025 Examination

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Mumbai

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First published on munotes.in on 5 November 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

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The question paper reproduced here is the paper as set by Savitribai Phule Pune University at the Apr 2025 examination.

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The Paper as Set

The questions in this volume are the questions asked at the Apr 2025 examination, reproduced as Savitribai Phule Pune University set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.

Duration 3 hours  ·  Total marks 70  ·  13 questions answered

Instructions printed on the paper

  • N.B. (1) Answer any two questions from Part-A. Each question in Part-A is for 15 marks. (2) Answer any three questions from Part-B. Each question in Part-B is for 10 marks. (3) Answer any two questions from Part-C. Each question in Part-C is for 5 marks. (4) Figures to the right indicate full marks.

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

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SECTION I

PART A

Answer any two · 30 Marks

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Q1)Enumerate the Procedure for admission, continuation, cessation and Removal of membership.[15]

Answer

For full marks, cover: open membership as a co-operative principle; who may be admitted (section 22(1) of the Maharashtra Co-operative Societies Act, 1960) and disqualified classes (section 22(1A), (1B)); kinds of members (sections 2(19), 24); the procedure for admission and deemed admission (sections 22(2), 23); appeal to the Registrar (section 23(2), (3)); continuation: rights on payment, voting, register of members and liability (sections 26, 27, 33, 38); cessation (section 25); removal of names (section 25A); expulsion (section 35); the cases (Zoroastrian, Damyanti Naranga, Daman Singh); a worked example; a table; a conclusion.

Introduction

A co-operative society is an association of persons who join voluntarily. Its first principle is voluntary and open membership. The Maharashtra Co-operative Societies Act, 1960 (MCS Act) protects that openness. A society cannot refuse a qualified person without good cause, must decide in time, and can expel a member only with strong safeguards.

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1. Who may be admitted (section 22(1))

No person may be admitted as a member except:

  1. an individual competent to contract under the Indian Contract Act, 1872;
  2. a firm, company or other body corporate, or a society registered under the Societies Registration Act, 1860;
  3. a co-operative society registered under the MCS Act;
  4. the State or Central Government;
  5. a local authority;
  6. a registered public trust; and
  7. a depositor or financial service user.

Provisos. The contractual-capacity rule does not apply to a society formed for students of a school or college. A firm or company may be admitted only to a federal or urban society, or one running an industrial undertaking.

Disqualified classes (section 22(1A), (1B)). The State Government may disqualify a class of persons whose interest conflicts with the objects of a class of societies. The Registrar decides whether a person falls within that class.

2. Kinds of members

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  1. Member (section 2(19)(a)). A person who joined the application for registration, or was duly admitted later. He has full rights.
  2. Nominal member (section 2(19)(c)). Admitted as such under the by-laws. He has no share in profits or assets (section 24(2)).
  3. Associate member (section 2(19)(b)). A person who holds a share jointly, but whose name does not stand first on the certificate.

A society may admit nominal and associate members notwithstanding section 22 (section 24(1)).

3. Procedure for admission

  1. Application. A qualified person applies to the society, with the share money and fee the by-laws require.
  2. Decision. The committee decides on the application.
  3. Reasons for refusal (section 22(2)). A refusal, with reasons, must be communicated within fifteen days of the decision, or within three months of receiving the application, whichever is earlier.
  4. Deemed admission. If the society communicates no decision within three months, the applicant is deemed admitted.
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  1. Refusal to accept the application (section 23(1A)). If the society will not even accept the application, the person may apply to the Registrar. The Registrar forwards it within thirty days. If the society does not decide within sixty days, the applicant is deemed a member.
  2. No refusal without cause (section 23(1)). No society may, without sufficient cause, refuse admission to a person duly qualified under the Act and its by-laws.
  3. Appeal (section 23(2), (3)). A person refused admission may appeal to the Registrar within sixty days. The Registrar should decide within three months, and his decision is final.
  4. Zoned societies (section 23(4)). A society with a defined zone must admit eligible persons in that zone.

4. Continuation of membership

  1. Rights begin on payment (section 26). A member may exercise his rights only after paying what the by-laws require. If the minimum share contribution is raised, the society must give notice and reasonable time.
  2. One member, one vote (section 27(1)). No member has more than one vote, and he votes personally, not by proxy.
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  1. Register of members (section 38). The society records each member's admission, shares and cessation. The register is prima facie evidence of these dates.
  2. Continuing qualification. A member continues only while he remains qualified and not disqualified under the Act and by-laws.
  3. Liability after leaving (section 33). A past member remains liable for the society's debts as they stood when he left, for two years. If the society is wound up within that time, the liability continues until liquidation ends.

5. Cessation of membership (section 25)

A person ceases to be a member:

  1. when his resignation is accepted;
  2. on transfer of his whole share or interest to another member;
  3. on his death;
  4. on his removal;
  5. on his expulsion; or
  6. where a corporate member is dissolved or ceases to exist.

6. Removal of membership

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  1. Removal of names (section 25A). The committee must remove from the register the name of a person who has ceased to be a member or stands disqualified. If it does not, the Registrar directs it to.
  2. Disqualified classes (section 22(1B)). A person found to be within a disqualified class may be removed by the Registrar. His membership ends one month after he receives the order.

Removal is not a punishment. It follows from a disqualification.

7. Expulsion (section 35)

  1. Ground. Acts detrimental to the interest or proper working of the society.
  2. Majority. A resolution passed by at least three-fourths of the members entitled to vote and present at a general meeting called for the purpose.
  3. Hearing. The member must be given a chance to represent his case to the general body.
  4. Registrar's approval. The resolution is effective only when approved by the Registrar.
  5. Bar (section 35(2)). An expelled member cannot be admitted to that or any other society for one year, unless the Registrar sanctions it.
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8. The cases

  1. Open but qualified. In Zoroastrian Co-operative Housing Society v. District Registrar, Co-operative Societies, (2005) 5 SCC 632, the Supreme Court upheld a by-law confining membership to Parsis. Open membership means membership of persons qualified under the by-laws. A person who joins is bound by them.
  2. Choice of associates. In Damyanti Naranga v. Union of India, (1971) 1 SCC 678, the Court held that the right to form an association includes the right to associate only with those whom the members voluntarily admit. A law thrusting members on a society violated article 19(1)(c).
  3. The member and the society. In Daman Singh v. State of Punjab, AIR 1985 SC 973, the Court said that once a person becomes a member, he loses his individuality qua the society. He acts and speaks through it.

9. A worked example

Ravi applies to join a credit society on 1 June. The committee dislikes his politics and does nothing.

  1. If no decision reaches him by 1 September, he is deemed admitted (section 22(2)).
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  1. If he is refused, he gets reasons and may appeal to the Registrar within sixty days. Political dislike is not "sufficient cause" (section 23).
  2. He votes in person, one vote (section 27(1)).
  3. If he later works against the society, he may be expelled only by a three-fourths vote, after a hearing, with the Registrar's approval (section 35).
  4. If he resigns, he remains liable for two years for the society's debts as they then stood (section 33).

10. Summary table

StageSectionKey rule
Eligibility22(1)Listed persons only
Admission22(2), 23Reasons within time; deemed admission; appeal to Registrar
Continuation26, 27, 38Rights on payment; one vote; register
Cessation25Resignation, transfer, death, removal, expulsion, dissolution
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StageSectionKey rule
Removal25A, 22(1B)For disqualification
Expulsion35Three-fourths, hearing, Registrar's approval, one-year bar
Past member33Liable for two years

Conclusion

Conclusion. The MCS Act opens membership to the persons listed in section 22, and forbids refusal without sufficient cause. Reasons must be given in time, failing which the applicant is deemed admitted, with an appeal to the Registrar (sections 22(2), 23). A member's rights begin on payment, he votes once and in person, and his membership is recorded (sections 26, 27, 38). Membership ends in six ways (section 25), and a disqualified member's name is removed (section 25A). Expulsion needs three-fourths, a hearing and the Registrar's approval (section 35). The courts uphold the society's by-laws and its freedom of association (Zoroastrian; Damyanti Naranga).

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