Short Answer

No, a society cannot delay or arbitrarily reject a transfer of membership.

Detailed Explanation

Section 29 of the Gujarat Cooperative Societies Act, 1961 states that a member of a cooperative society has the right to transfer his or her shares or interest in the society. The society cannot delay or arbitrarily reject such a transfer unless there are valid reasons specified in the Act or Rules. This provision ensures that members have the freedom to transfer their membership without unnecessary hindrances.

Furthermore, Rule 25 of the Gujarat Cooperative Societies Rules, 1965 outlines the procedure for the transfer of shares or interest in a cooperative society. The rule specifies that the transferor must give a written notice to the society along with the necessary documents related to the transfer. The society is then required to process the transfer within a specified time frame and cannot unreasonably delay or reject the transfer.

In practice, this means that if a member wishes to transfer their membership in a cooperative society, they have the right to do so as long as they follow the prescribed procedure. The society must adhere to the rules and regulations governing such transfers and cannot arbitrarily reject a legitimate transfer request.

Real-world Scenarios

• Mr. Patel, a member of a cooperative housing society, decides to transfer his membership to his son. He follows the procedure outlined in Rule 25 by submitting a written notice and all required documents to the society. The society must process the transfer within the stipulated time frame and cannot unreasonably delay or reject the transfer.

• A cooperative credit society receives a request for the transfer of membership from one member to another. As long as the transfer complies with the provisions of the Act and Rules, the society cannot arbitrarily reject the transfer.

• In a scenario where a society delays or rejects a transfer of membership without valid reasons, the member has the right to challenge such actions through legal recourse as provided under the Gujarat Cooperative Societies Act, 1961.

References

• Section 29 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 25 of the Gujarat Cooperative Societies Rules, 1965: Official PDF