Short Answer

If a society tries to enforce a rule that is not mentioned in its by-laws, it may face legal consequences.

Detailed Explanation

Rule 56 of the Gujarat Cooperative Societies Rules, 1965 states that the by-laws of a cooperative society must be registered with the Registrar. These by-laws govern the internal functioning of the society, including rules related to common areas, parking, and other aspects. If a society attempts to enforce a rule that is not part of its registered by-laws, it would be acting beyond its legal authority. This can lead to disputes among members, legal challenges, and potential penalties.

Section 14 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to inquire into the affairs of a society and take necessary actions if any provision of the Act or Rules is violated. If a society is found to be enforcing unauthorized rules, the Registrar may issue directions to rectify the situation, impose fines, or even cancel the registration of the society in extreme cases.

In practice, if a society tries to enforce a rule not in its by-laws, it could lead to confusion, conflicts among members, and a breakdown of governance within the society. For example, if a society suddenly decides to impose a new parking fee without having it in the by-laws, some members may refuse to comply, leading to disagreements and potential legal actions.

To rectify such a situation, the society would need to follow a process of amending its by-laws to include the new rule through a general body meeting, obtaining approval from the majority of members, and then registering the amended by-laws with the Registrar to ensure legal validity.

Practical Examples

• Scenario: A cooperative society decides to restrict the use of common areas for certain activities not mentioned in the by-laws.

Consequence: Members challenge this decision, leading to internal conflicts and possible legal action.

• Scenario: The society introduces a new rule regarding guest parking without formal approval in the by-laws.

Consequence: Some members refuse to adhere to the rule, causing disputes and non-compliance issues within the society.

• Scenario: The society imposes a fine for late payment of maintenance charges, which is not specified in the registered by-laws.

Consequence: Members contest the fine, citing the lack of legal basis, and the society faces challenges in enforcing the penalty.

References

• Rule 56 of the Gujarat Cooperative Societies Rules, 1965

• Section 14 of the Gujarat Cooperative Societies Act, 1961