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TMI Blog1940 (4) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT The question for decision in this Second Appeal is whether the award of the sum of Rs. 1,295 paid as gratuity to the second defendant by the first defendant Bank in pursuance of a resolution of the General Body dated 23rd November 1935 is valid. The learned Judge in the Court below answered the question in the affirmative. The question is whether his view is sound. Mr. Rajah Ayyar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter the receipt of that letter from the said Registrar, the Board of Management seems to have amended the bye-laws by providing that in cases where the Board comes to the conclusion that an officer will have to be permanently incapacitated, though not supported by a medical certificate, it might pay gratuity. On the strength of the amended by-law, the Board of Management wanted to grant gratuity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed a resolution sanctioning the said sum of Rs. 1,295 they were simply sanctioning an illegal resolution of the Board of Management. It must therefore be held that the payment was ultra vires. I am not inclined to agree with this contention. It cannot be denied that even though the by-laws did not provide for payment of a gratuity because under the rules, the Board of Management could not gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws, i.e., before they were amended, the payment of gratuity to the ex-secretary was not proper, that objection was taken by the Registrar of Co-operative Societies and that therefore the sanction of the General Body was sought. Considering all these facts, the General Body chose to pass the resolution which it is perfectly competent to do and Mr. Rajah Ayyar has not placed before me any authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceptional cases which have not been provided by the by-laws as framed by the Board of Management. This power is always vested in the General Body and by the mere fact of delegation, it cannot be taken away. Mr. Rajah Ayyar has again not placed before me any authority in support of his contention. Only these two contentions were advanced by Mr. Rajah Ayyar and I am clearly of opinion that both th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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