Recovery of Legal Expenses of Society
Members demanded to recover Legal expenses as per SGM resolution
A resolution was passed for “Recovery of Legal Expenses of Society” by circulation by the signatories.
REMARKS OF THE NGO (Disputes Settlement Trust): The legal expenses of the Society has to be borne by the Society and these cannot be recovered from the member concerned until and unless majority of the General Meeting in properly called AGM, put this item in Agenda, then discusses this item in the meeting and then passes a resolution to recover the legal expenses from a particular member.
In spite of the above, if the member agrees to pay, it is well and good. But if the member wants he/she can contest it before the Registrar of Co-operative Societies. The final decision shall be taken by the Registrar of Co-operative Societies.
When an Arbitration case is lodged by the Society and the Society asks for cost of arbitration expenses from the member and if the Arbitrator awards the cost of arbitration expenses in favour of the society, it will be included in the Decree or the Award and the same has to be paid by the member. If the member do not pay, the Society has the right to recover it through recovery proceedings to be instituted by it and then the recovery officer can recover it through legal means and it shall be given to the society along with interest.
In the above letter of the members of the Lovely Home CGHS Ltd, recovery of legal expenses is passed by the General Meeting and there after even if the managing committee do not raise a demand, there is no bar in the decision of the managing committee. The basic reason is that there is no court order which can affect their working or make them liable for contempt of court.
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