ISSUE:
Whether the byelaw restricting membership to Parsis was valid?
RULE:
The Co-operative Societies Act provides that no society shall, without sufficient cause, refuse admission to and person duly qualified under the provisions of the Act and its byelaws.
In the case of a housing society, there should be a bond of common habits and common usage among the members. This bond is found most in community or caste groups in India.
The concept of public policy in the present context must be looked for under the Act and, in the absence of any such provision, it cannot be held that the byelaws are opposed to public policy.