Short Answer

Yes, the society's repair contracts, including those for lift services, are required to be approved by the Annual General Meeting (AGM).

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 mandates that certain contracts, including those for repairs and maintenance exceeding a specified amount, need approval from the General Meeting. This means that any repair contracts, such as those for lift services, which exceed the prescribed limit, must be approved by the AGM.

Additionally, Rule 85 of the Gujarat Cooperative Societies Rules, 1965 provides further details on the approval process for contracts. It states that contracts for works exceeding a certain amount require prior approval from the General Meeting. Therefore, any repair contracts, including lift services, falling above the specified limit, must be sanctioned by the AGM.

In practice, this requirement ensures transparency and accountability in the society's financial dealings. By seeking approval at the AGM, all members have a say in major repair contracts, preventing any unilateral decisions that may not be in the best interest of the society.

For example, if a cooperative housing society needs to enter into a contract for lift maintenance exceeding the limit set by the Act, the managing committee must present the contract details at the AGM for approval. Failure to do so would render the contract invalid, leading to potential legal disputes.

In another scenario, if the society's managing committee signs a repair contract for lift services without AGM approval and a member raises objections, they can challenge the validity of the contract based on the non-compliance with the Act and Rules.

Overall, the requirement for AGM approval of repair contracts, including those for lift services, ensures democratic decision-making within the cooperative society and protects the interests of all members.

References

• Section 73 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 85 of the Gujarat Cooperative Societies Rules, 1965: Official PDF