Short Answer

Members are generally not entitled to a refund or adjustment of prepaid maintenance if they exit mid-year.

Detailed Explanation

Section 27 of the Gujarat Cooperative Societies Act, 1961 deals with the rights and privileges of members. This section states that a member who withdraws from a cooperative society shall not be entitled to claim any refund of his share capital or of any amount paid by him in excess of the amount due from him to the society. This means that if a member exits mid-year, they are not entitled to a refund of any prepaid maintenance or other amounts they have paid to the society.

Additionally, Rule 68 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the refund of share capital and deposits. According to this rule, any amount due to a member who withdraws from the society shall be paid to him after deducting any sum due from him to the society. This rule further supports the notion that members are not entitled to a refund or adjustment of prepaid maintenance if they exit mid-year.

In practice, this means that members who choose to leave a cooperative society before the end of the financial year will not receive any refund for prepaid maintenance or other amounts paid in advance. This rule is in place to ensure the financial stability of the cooperative society and to prevent any unfair advantage to members who exit mid-year.

Real-world Scenarios

• A member of a cooperative housing society decides to sell their property and leave the society in the middle of the year. They will not be entitled to a refund of any prepaid maintenance fees they have already paid.

• A farmer who is a member of an agricultural cooperative decides to withdraw his membership before the end of the financial year. He will not receive any refund of prepaid expenses or maintenance fees.

Reference

• Section 27 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 68 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]