Short Answer

Yes, a member can sue to recover a share or interest if the society refuses to transfer it.

Detailed Explanation

Section 123 of the Gujarat Cooperative Societies Act, 1961 empowers a member to seek legal remedy if the society refuses to transfer their share or interest. This section states that if a society fails to transfer the share or interest within two months from the date of application for transfer, the member can approach the Registrar for relief. The Registrar may then direct the society to transfer the share or interest or pay the value thereof to the member.

In practice, this provision ensures that members are not unfairly deprived of their rightful share or interest in the society. For example, if a member requests the transfer of their share to another individual and the society unreasonably delays or denies the transfer, the member can invoke Section 123 to seek redress.

Real-world scenarios where this provision may apply include cases where a society intentionally delays the transfer of shares to prevent a member from exercising their rights or benefiting from their investment. In such situations, the affected member can file a complaint with the Registrar to enforce their legal entitlement.

The step-by-step process for a member to sue for the recovery of a share or interest involves first submitting an application for transfer to the society. If the society fails to act within two months, the member can then file a complaint with the Registrar under Section 123 for necessary action.

Reference

• Section 123 of the Gujarat Cooperative Societies Act, 1961: Official PDF