Short Answer

Yes, if a judgment is in favor of the society, an individual member can be made to pay society costs.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers the society to recover any costs incurred by it in legal proceedings from its members. This means that if the society incurs legal expenses in a case where judgment is in its favor, it can recover those costs from the individual member involved in the dispute. The society can enforce this right through legal means and recover the costs as per the judgment.

Furthermore, Rule 144 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for the recovery of costs by the society from its members. The rule outlines the process of determining the amount of costs to be recovered, issuing notices to the member, and taking necessary legal actions for recovery. This rule ensures that the society can effectively recover the costs incurred in legal proceedings.

In practice, if a judgment favors the society in a legal dispute with an individual member, the society can initiate the process of recovering the costs incurred. This may involve sending a notice to the member demanding payment of the costs within a specified period. If the member fails to comply, the society can take legal action to enforce the payment, such as filing a recovery suit in court.

Real-world Scenarios

• Scenario 1: A cooperative housing society files a legal case against a member for unauthorized construction. The court rules in favor of the society and orders the member to pay the legal costs incurred by the society during the proceedings.

• Scenario 2: A cooperative credit society takes legal action against a member for defaulting on loan repayments. The judgment favors the society, and the member is required to reimburse the society for the legal expenses.

Reference

• Section 73 of the Gujarat Cooperative Societies Act, 1961

• Rule 144 of the Gujarat Cooperative Societies Rules, 1965