Short Answer

No, members cannot demand damages for actions taken under a void society by-law.

Detailed Explanation

Section 13 of the Gujarat Cooperative Societies Act, 1961 deals with the effect of registration. It states that the registration of a society under the Act shall not be deemed to make any by-law of the society valid if it is void. This means that if a society by-law is declared void, it is considered invalid from the beginning, and any actions taken under it are also deemed invalid.

Furthermore, Rule 74 of the Gujarat Cooperative Societies Rules, 1965 outlines the powers of the Registrar to cancel the registration of a society. If a by-law is found to be void, the Registrar may take appropriate actions, including cancelling the registration of the society. In such cases, members cannot claim damages for actions taken under the void by-law as it was never legally valid.

In practice, if a society by-law is declared void, members should adhere to the decision and take necessary steps to rectify any actions taken under the void by-law. This may involve correcting any transactions, decisions, or agreements made based on the void by-law.

Real-world Scenarios

• Scenario 1: A cooperative housing society passes a by-law allowing for unauthorized construction. Subsequently, the by-law is declared void by the Registrar due to non-compliance with the law. Members cannot claim damages for the unauthorized construction carried out under the void by-law.

• Scenario 2: A society by-law permits the exclusion of certain members from voting rights. If this by-law is found to be void, members affected by the exclusion cannot demand damages for actions taken during voting processes based on the void by-law.

Reference

• Section 13 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 74 of the Gujarat Cooperative Societies Rules, 1965: Official PDF