Maintenance and Utility Disputes

What happens if a group of members refuses to pay maintenance – can society sue them?

Yes, under the Gujarat Cooperative Societies Act, 1961, a cooperative society can take legal action against members who refuse to pay maintenance.

Yes, under the Gujarat Cooperative Societies Act, 1961, a cooperative society can take legal action against members who refuse to pay maintenance.

Written By: GatePal Analyst

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Short Answer

Yes, under the Gujarat Cooperative Societies Act, 1961, a cooperative society can take legal action against members who refuse to pay maintenance.

Detailed Explanation

Section 123 of the Gujarat Cooperative Societies Act, 1961 empowers a cooperative society to recover any dues, including maintenance charges, from its members. This section allows the society to take legal action against defaulting members, including filing a civil suit for recovery. In practice, if a group of members refuses to pay maintenance, the society can first issue a notice demanding payment. If the members still do not comply, the society can initiate legal proceedings as per the Act.

Furthermore, Rule 130 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for recovery of dues by a cooperative society. This rule outlines the steps the society must follow, such as issuing a notice, convening a meeting of the managing committee, and taking necessary legal actions. In real-world scenarios, societies often use these provisions to enforce payment of maintenance charges by defaulting members.

For example, if a group of members consistently refuses to pay maintenance despite repeated reminders, the society can follow the process outlined in Section 123 and Rule 130. The society can issue a legal notice demanding payment, convene a meeting to discuss the issue, and eventually file a civil suit if necessary. By following these legal provisions, the society can ensure that all members fulfill their financial obligations towards the maintenance of the cooperative.

Another practical scenario could involve a situation where a few members refuse to pay maintenance due to disputes or disagreements with the society's management. In such cases, the society can rely on the legal framework provided by the Act and Rules to resolve the dispute and recover the outstanding dues. By exercising its rights under the law, the society can maintain financial stability and ensure the proper functioning of the cooperative for the benefit of all members.

References

  • Section 123 of the Gujarat Cooperative Societies Act, 1961: Official PDF

  • Rule 130 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

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