Society membership bye-law upheld with reading down to allow proof of payment or sufficient cause before cessation.

Membership cessations under society bye-laws were examined against the Karnataka Societies Registration Act, 1960, and Rule 7(A) was treated as consistent with Section 2(b) because failure to pay the annual subscription by the stipulated date meant the member was no longer duly continuing in membership for that year. The Court also rejected the challenge that the rule was harsh or arbitrary, but read it down so that a member who had in fact paid, or who had sufficient cause for delay, could raise the matter before the society before cessation operated. On that construction, the consequential directions based on invalidity of the rule could not survive and were set aside.

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Issues: (i) Whether Rule 7(A) and the earlier Rule 7 of the society were inconsistent with Section 2(b) of the Karnataka Societies Registration Act, 1960. (ii) Whether Rule 7(A) was harsh, arbitrary, and liable to be struck down. (iii) Whether the consequential directions issued by the High Court could stand.

Issue (i): Whether Rule 7(A) and the earlier Rule 7 of the society were inconsistent with Section 2(b) of the Karnataka Societies Registration Act, 1960.

Analysis: Section 2(b) defines a member as one admitted in accordance with the rules and regulations and who has paid subscription, while also providing that a person in arrears of subscription for more than three months is not entitled to vote or be counted as a member in proceedings under the Act. Rule 7(A) required an ordinary member to pay the annual subscription by the end of March, failing which membership would cease. The Court held that this rule operated in harmony with the statutory scheme, because non-payment within the stipulated period meant that the member was not duly continuing in membership for that year and, in any event, would be in arrears for more than three months. The proviso to Section 6(2) did not help a person who had already ceased to be a member by valid operation of the rules.

Conclusion: Rule 7(A) and the earlier Rule 7 were not ultra vires Section 2(b); the issue was answered against the respondents and in favour of the appellant.

Issue (ii): Whether Rule 7(A) was harsh, arbitrary, and liable to be struck down.

Analysis: The Court held that the rule gave ordinary members a clear and limited period to pay a modest annual subscription and that no notice was necessary where cessation resulted from the member's own inaction. At the same time, the rule had to be read reasonably so that a member who had actually paid but whose payment was not properly credited, or who had a sufficient cause preventing timely payment, could raise the matter before the society before the end of the relevant year. To that extent, Rule 7(A) was read down to preserve its validity and to avoid unreasonableness and arbitrariness.

Conclusion: Rule 7(A) was not invalid on the ground of harshness or arbitrariness, but it was upheld only after reading it down as stated; the issue was answered in favour of the appellant, subject to reading down.

Issue (iii): Whether the consequential directions issued by the High Court could stand.

Analysis: Once the findings on the first two issues went in favour of the appellant, the foundation of the High Court's order disappeared. The consequential directions were dependent on the invalidation of the rule and could not survive after the rule was held valid subject to reading down.

Conclusion: The consequential directions could not be sustained and were set aside.

Final Conclusion: The appellant-society succeeded on the merits, the impugned judgment was set aside, and the writ petitions stood dismissed, while the rule governing cessation of ordinary membership was preserved only with the limiting construction adopted by the Court.

Ratio Decidendi: A membership bye-law providing for cessation upon non-payment of annual subscription is valid where it operates consistently with the statute, but if its literal operation may produce unreasonable results, it can be sustained by reading it down to permit timely proof of payment or sufficient cause before automatic cessation takes effect.

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