Short Answer

No, if the society by-law prohibits rentals, it is not enforceable under the law.

Detailed Explanation

Section 23 of the Gujarat Cooperative Societies Act, 1961 states that the by-laws of a cooperative society may provide for various matters, including the use and occupation of the premises. However, these by-laws must be consistent with the provisions of the Act. Rule 56 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the contents of the by-laws, emphasizing that they should not contravene the Act or the Rules.

In practice, if a society's by-law prohibits rentals, it would be considered invalid and unenforceable. This is because the Act and Rules do not specifically prohibit members from renting out their premises. Any such restriction in the by-laws would go against the spirit of cooperative living and the rights of the members.

Real-world Scenarios

• Scenario 1: A cooperative society passes a by-law prohibiting members from renting out their flats to outsiders. However, a member challenges this by-law citing Section 23 of the Act, which allows for reasonable use and occupation of the premises. The by-law would likely be deemed unenforceable.

• Scenario 2: A society tries to penalize a member for renting out their premises against the by-law. The member can defend themselves by pointing out the inconsistency of the by-law with the Act and Rules.

Reference

• Section 23 of the Gujarat Cooperative Societies Act, 1961

• Rule 56 of the Gujarat Cooperative Societies Rules, 1965