Short Answer

Yes, the society should treat the new equipment, such as a larger pump, as a common asset.

Detailed Explanation

Section 61 of the Gujarat Cooperative Societies Act, 1961 states that the property of a cooperative society includes movable and immovable property acquired by the society. This means that any equipment purchased by the society, like a larger pump, would be considered as part of the society's property and hence a common asset. In practice, this implies that the ownership and maintenance responsibility of the equipment would lie with the society as a whole, and not with individual members.

Furthermore, Rule 56 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the management of the society's property. It mandates that the management committee is responsible for the maintenance and upkeep of all common assets of the society. Therefore, when the society purchases new equipment, it becomes the duty of the management committee to ensure its proper functioning and maintenance.

In real-world scenarios, if a cooperative society decides to invest in a larger pump for water supply purposes, this equipment would be considered a common asset. All members of the society would collectively benefit from the improved water supply, and the cost of purchasing, installing, and maintaining the pump would be shared among the members as per the by-laws of the society.

For a step-by-step process, when the society plans to buy new equipment, the management committee should convene a meeting to discuss the necessity, cost, and benefits of the equipment. Once approved by the members, the purchase should be made using the society's funds and the equipment should be recorded as a common asset in the society's inventory.

Practical Examples

• Example 1: A cooperative housing society decides to invest in a new generator for backup power supply. The generator is treated as a common asset as it benefits all residents in case of power outages.

• Example 2: A cooperative society purchases a new lawnmower for maintaining the common garden area. The lawnmower is considered a common asset as it is used for the benefit of all members.

• Example 3: A cooperative society buys a new CCTV system for enhanced security. The CCTV system is treated as a common asset as it serves the collective security needs of all residents.

References

• Section 61 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 56 of the Gujarat Cooperative Societies Rules, 1965: Official PDF