Short Answer

Yes, society officials can charge legal fees from members as a recoverable expense.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers the society to recover legal fees from its members. This section allows the society to incur legal expenses for its operations, including legal proceedings, and recover such expenses from the members. In practice, society officials can engage legal counsel to handle disputes, litigation, or any legal matters concerning the society's functioning. The legal fees incurred can be treated as a recoverable expense from the members involved in the issue.

Furthermore, Rule 163 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the recovery of expenses by the society. This rule outlines the procedure for recovering various expenses, including legal fees, from the members. It ensures transparency and accountability in the financial dealings of the society. Society officials need to maintain proper records and documentation of legal expenses incurred and the members liable for such expenses.

In real-world scenarios, if a society faces a legal dispute or requires legal advice, the officials may hire a lawyer to represent the society's interests. The legal fees incurred in such cases can be recovered from the members involved in the dispute or benefiting from the legal services. The society must follow the due process as per the Act and Rules to recover these expenses.

Practical Examples

• Scenario 1: A cooperative housing society faces a legal challenge regarding property ownership. The society hires a lawyer to handle the case, and the legal fees are recovered from the members who are parties to the dispute.

• Scenario 2: A cooperative credit society seeks legal advice on loan recovery procedures. The legal expenses incurred for this consultation can be recovered from the members who have taken loans from the society.

References

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

• Rule 163 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]