Short Answer

Yes, members are generally required to be in good standing (up-to-date on dues) to retain membership in a cooperative society.

Detailed Explanation

Section 29 of the Gujarat Cooperative Societies Act, 1961 addresses the issue of membership and states that a person shall cease to be a member of a cooperative society if he fails to pay his dues within the specified time. This means that members must stay current on their dues to maintain their membership status. In practice, this provision ensures that the financial obligations of members are met timely, which is essential for the smooth functioning of the cooperative society.

Furthermore, Rule 21 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the procedure for recovery of dues from members. It outlines the steps that can be taken by the society to recover outstanding dues, including issuing notices and taking legal action if necessary. This rule reinforces the importance of members being in good standing with regards to their financial obligations.

In real-world scenarios, if a member falls behind on their dues and fails to rectify the situation within the specified time frame, the society may take action to terminate their membership. This could result in the loss of voting rights and other privileges associated with membership. Therefore, it is crucial for members to ensure they are up-to-date on their dues to avoid any adverse consequences.

Practical Examples

• Mr. Patel, a member of a cooperative society, fails to pay his monthly dues for three consecutive months. As per Section 29 of the Act, the society issues a notice to Mr. Patel informing him of his outstanding dues and the consequences of non-payment. If Mr. Patel does not settle his dues within the specified period, his membership may be terminated.

• A cooperative housing society requires all members to pay an annual maintenance fee. If a member, Mrs. Shah, consistently delays payment of her maintenance dues, the society can follow the procedures outlined in Rule 21 of the Rules to recover the outstanding amount and maintain financial discipline within the society.

• In a cooperative credit society, members are required to contribute to a common fund regularly. If a member, Mr. Desai, fails to make his contributions as per the schedule, the society can take necessary steps to recover the dues and ensure compliance with the membership requirements.

References

• Section 29 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 21 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]