Short Answer

Yes, society members have standing to sue the society or committee members personally.

Detailed Explanation

Section 91 of the Gujarat Cooperative Societies Act, 1961 empowers society members to take legal action against the society or its committee members. This section states that any dispute between a society and its members, past members, or persons claiming through them can be referred to the Registrar for arbitration. If the dispute is not settled through arbitration, the society or any of its members can approach the civil court for resolution.

Furthermore, Rule 126 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on filing complaints with the Registrar. This rule specifies the procedure for submitting complaints, including the necessary documents and fees. If the Registrar finds merit in the complaint, they can take appropriate action against the society or committee members, including ordering an inquiry or directing necessary remedies.

In practice, if society members believe that the society or its committee members have acted unlawfully or against the interests of the society, they can file a complaint with the Registrar under Rule 126. The Registrar will then investigate the matter and take necessary actions to resolve the dispute. If the issue remains unresolved, society members can seek legal recourse through the civil court as per Section 91 of the Act.

Real-world Scenarios

• Scenario 1: A society member alleges financial mismanagement by the committee members and files a complaint with the Registrar under Rule 126. The Registrar conducts an inquiry and finds evidence of wrongdoing, leading to the removal of the errant committee members.

• Scenario 2: Society members accuse the society of violating its bylaws and failing to conduct elections as per the Act. They approach the civil court under Section 91 for a directive to hold elections and ensure compliance with the bylaws.

• Scenario 3: Committee members are accused of favoritism in awarding contracts, resulting in financial losses to the society. Society members collectively file a complaint with the Registrar, seeking an investigation and appropriate action against the guilty parties.

References

• Section 91 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 126 of the Gujarat Cooperative Societies Rules, 1965: Official PDF