Legal Remedies and Registrar Complaints

Are society office-bearers personally liable for society decisions (like giving a wrong certificate)?

Yes, society office-bearers can be personally liable for society decisions, including providing incorrect certificates.

Yes, society office-bearers can be personally liable for society decisions, including providing incorrect certificates.

Written By: GatePal Analyst

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Short Answer

Yes, society office-bearers can be personally liable for society decisions, including providing incorrect certificates.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 states that every officer of a society shall be personally liable for the acts done by the society during his term in the same manner as if they were done by him in his individual capacity. This means that office-bearers can be held personally responsible for decisions made by the society, such as issuing incorrect certificates.

Furthermore, Rule 93 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the liability of office-bearers. It states that if any loss is caused to the society due to the willful neglect or default of any officer, he shall be liable to make good such loss. This rule reinforces the personal liability of office-bearers for any harm caused to the society.

In practice, if a society office-bearer provides a wrong certificate which results in financial or reputational harm to the society or its members, they can be held accountable for such actions. Legal action can be taken against them to recover any losses incurred by the society due to their negligence or misconduct.

For example, if the secretary of a cooperative housing society issues a false occupancy certificate to a member, leading to legal disputes and financial losses for the society, the secretary can be held personally liable under Section 73 of the Act and Rule 93 of the Rules.

In another scenario, if the treasurer of a cooperative credit society misappropriates funds and causes a financial loss to the society, they can be held personally responsible for reimbursing the amount under the provisions of the Act and Rules.

In summary, society office-bearers can indeed be personally liable for society decisions, including providing incorrect certificates, under the Gujarat Cooperative Societies Act and Rules.

References

  • Gujarat Cooperative Societies Act, 1961: Section 73

  • Gujarat Cooperative Societies Rules, 1965: Rule 93

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