Legal Remedies and Registrar Complaints

Can non-members (like contractors) sue the society for unpaid dues?

Non-members such as contractors generally cannot sue a cooperative society for unpaid dues.

Non-members such as contractors generally cannot sue a cooperative society for unpaid dues.

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Short Answer

Non-members such as contractors generally cannot sue a cooperative society for unpaid dues.

Detailed Explanation

Section 80 of the Gujarat Cooperative Societies Act, 1961 deals with disputes between cooperative societies and non-members. This section states that any dispute between a cooperative society and a non-member, including a contractor, can be referred to the Registrar for arbitration. This means that if a non-member, like a contractor, has unpaid dues from a cooperative society, they cannot directly sue the society in court. Instead, they must follow the arbitration process set out in the Act.

Furthermore, Rule 100 of the Gujarat Cooperative Societies Rules, 1965 provides the procedure for arbitration of disputes between cooperative societies and non-members. This rule outlines the steps to be followed for resolving such disputes through arbitration. In practice, this means that if a contractor has unpaid dues from a cooperative society, they can initiate the arbitration process as per the rules.

For example, if a contractor has completed work for a cooperative society but has not been paid, they can file a complaint with the Registrar under Section 80 of the Act. The Registrar will then appoint an arbitrator to resolve the dispute between the contractor and the society. The arbitration process will involve hearings, evidence submission, and a final decision by the arbitrator.

In another scenario, if a non-member supplier has provided goods to a cooperative society but has not received payment, they can also utilize the arbitration mechanism under the Act and Rules. By following the prescribed procedures, non-members can seek redress for unpaid dues through the arbitration process facilitated by the Registrar.

Overall, non-members, including contractors, have the option to resolve disputes regarding unpaid dues with cooperative societies through the arbitration mechanism provided by the Gujarat Cooperative Societies Act and Rules.

References

  • Section 80 of the Gujarat Cooperative Societies Act, 1961: Official PDF

  • Rule 100 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

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