Short Answer

Yes, elected committee members can be held liable for society debts.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 states that the committee of a cooperative society shall be collectively responsible for the proper management of the society's affairs. This means that the elected committee members are collectively accountable for the society's debts and financial obligations. In practice, if the society incurs debts or liabilities that it cannot repay, the creditors can take legal action against the committee members to recover the dues.

Furthermore, Rule 134 of the Gujarat Cooperative Societies Rules, 1965 specifies that if a cooperative society is unable to meet its financial obligations, the committee members may be held personally liable for the debts. This rule reinforces the principle that committee members can be held accountable for society debts in case of default.

For example, if a cooperative society takes a loan for a development project and fails to repay it due to mismanagement or financial losses, the creditors can sue the committee members to recover the outstanding amount. Similarly, if the society defaults on payment to vendors or service providers, the committee members may be personally liable for settling the dues.

In such scenarios, the creditors can initiate legal proceedings against the committee members to recover the outstanding debts. The committee members may have to pay from their personal assets to clear the society's liabilities if the society's funds are insufficient to cover the debts.

Reference

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

• Rule 134 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]