Short Answer

Yes, under the Gujarat Cooperative Societies Act, 1961, a society can be made to pay interest or damages if it is found to have caused loss to its members.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to inquire into complaints regarding the working of a society and take necessary actions. If it is found that the society has caused loss to its members due to any wrongful act or omission, the Registrar may direct the society to pay interest or damages to the affected members. This section aims to protect the interests of the members and ensure accountability of the society towards its members.

Furthermore, Rule 123 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for filing complaints with the Registrar regarding any grievances against the society. Members can submit complaints along with relevant evidence to support their claims of loss caused by the society. The Registrar will then investigate the matter and determine the appropriate action to be taken, which may include ordering the society to compensate the affected members with interest or damages.

Practical Examples

• Scenario 1: A cooperative housing society fails to maintain the common amenities as promised to its members, leading to inconvenience and financial loss. Members can file a complaint with the Registrar under Section 73, seeking compensation for the damages suffered.

• Scenario 2: A credit cooperative society mismanages the funds deposited by its members, resulting in financial losses for the depositors. The Registrar, upon investigation, can order the society to pay interest or damages to the affected members as per the provisions of the Act and Rules.

• Scenario 3: A cooperative society engages in fraudulent practices that cause monetary losses to its members. The affected members can approach the Registrar with evidence of the wrongdoing, leading to the society being directed to compensate the members for the damages incurred.

References

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

• Rule 123 of the Gujarat Cooperative Societies Rules, 1965: Official PDF