Short Answer

A member can be disqualified or expelled for defaulting in payment of any dues or for any other default as per the Gujarat Cooperative Societies Act, 1961 and Rules.

Detailed Explanation

Section 27 of the Gujarat Cooperative Societies Act, 1961 empowers the society to expel a member for defaulting in payment of any dues within the specified time. This means that if a member fails to pay their dues within the stipulated period, the society has the authority to expel them from the membership. In practice, this provision ensures that members fulfill their financial obligations towards the cooperative society, thereby maintaining the financial health of the society.

Furthermore, Rule 38 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the procedure for expulsion of a member. It mandates that the society must serve a notice to the member specifying the default and providing an opportunity to be heard before taking any action. This rule ensures that the member is given a fair chance to rectify the default or present their case before facing expulsion.

Practical Examples

• Scenario: Mr. Patel, a member of a cooperative housing society, fails to pay his maintenance dues for three consecutive months.

• Action: The society serves a notice to Mr. Patel informing him of the default and providing a period to clear the dues.

• Outcome: If Mr. Patel fails to pay within the specified time, the society can expel him from the membership.

• Scenario: Ms. Shah, a member of an agricultural cooperative society, defaults in contributing towards a collective farming project.

• Action: The society issues a notice to Ms. Shah outlining the default and offering a chance to explain her position.

• Outcome: If Ms. Shah does not rectify the default or provide a valid reason, the society may proceed with her expulsion.

• Scenario: Mr. Desai, a member of a credit cooperative society, defaults in repaying a loan taken from the society.

• Action: The society sends a notice to Mr. Desai highlighting the default and requesting repayment within a specified timeframe.

• Outcome: If Mr. Desai does not clear the dues as per the notice, the society can expel him from the membership.

References

• Section 27 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 38 of the Gujarat Cooperative Societies Rules, 1965: Official PDF