Short Answer

Yes, committee members of cooperative societies can be sued by members for negligence or breach of trust.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 deals with the liability of committee members. It states that committee members shall be jointly and severally responsible for any loss caused due to their negligence or breach of trust. This means that if a committee member acts negligently or breaches the trust placed in them, they can be held legally accountable for any resulting losses suffered by the cooperative society or its members.

In practice, if members believe that committee members have acted negligently or breached their trust, they can file a complaint with the Registrar of Cooperative Societies. The Registrar will then investigate the matter and take appropriate action, which may include holding the committee members liable for their actions.

Real-world Scenarios

• Scenario 1: The committee members of a cooperative society mismanage the society's funds, leading to financial losses. In this case, the members can sue the committee members for negligence and breach of trust under Section 73 of the Act.

• Scenario 2: A committee member of a cooperative society embezzles funds for personal gain, causing harm to the society. The other members can take legal action against the errant committee member for breach of trust.

Step-by-step process:

• Members gather evidence of negligence or breach of trust by committee members.

• File a complaint with the Registrar of Cooperative Societies, citing the specific actions of negligence or breach of trust.

• The Registrar conducts an investigation and determines the liability of the committee members.

• If found guilty, the committee members may be required to compensate the society for any losses incurred.

Reference

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