Hi Mani,
OK, this may not work straight out of the box as you didn't mention which RDBMS you're using and it does make a bit of a difference here. From your spec, I've called TABLE 1 "member" and TABLE 2 "privileged_member".
I've tried to make it as standard as possible but you may need to add DESC to "ORDER BY pm.member_no" depending on whether your DB sorts NULL high or low. If that doesn't work you'll need to use the IsNull or IfNull function (depending on DB) to convert NULL to, say -1, so that privileged members always appear at the top.
Your RDBMS may also struggle with the ANSI outer join syntax, especially if it's something pants like MySQL.
If you still have trouble then re-post and I'll see if I can help out.
Fortunately no guru required this time.
Jules