Short Answer

In case a society fails to keep appointments such as rents, loans, or salaries during redevelopment, the liability would generally fall on the society as a whole.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 deals with the liability of a society. It states that the society as a whole is responsible for all its debts and liabilities. This means that if the society fails to meet its financial obligations during redevelopment, the society collectively bears the responsibility.

Additionally, Rule 148 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the management of society funds. It mandates that the society must maintain proper accounts of all its transactions, including rents, loans, and salaries. If the society fails to do so and defaults on payments during redevelopment, the society as a whole would be held accountable.

In practice, if the society is unable to keep appointments like paying rents to landlords, repaying loans, or disbursing salaries to workers during redevelopment, legal action can be taken against the society. Creditors or employees can file complaints or lawsuits against the society to recover their dues.

For example, if a cooperative housing society undergoing redevelopment fails to pay the rent to the contractor for construction work, the contractor can take legal action against the society to claim the outstanding amount. Similarly, if the society defaults on loan repayments during redevelopment, the lending institution can initiate legal proceedings to recover the loan amount.

In such scenarios, the society may face financial penalties, legal consequences, and damage to its reputation. Therefore, it is crucial for societies to ensure timely payments and financial discipline during the redevelopment process to avoid liabilities and legal disputes.

References

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

• Rule 148 of the Gujarat Cooperative Societies Rules, 1965: Official PDF