There is a defamation case u/s 500 of IPC against old office bearers and they want new committee to pay the court expenses approximately Rs. 50,000/- each for 3 and they made representation and got many members for them for passing the resolution. Their logic is the case is pertaining to period when they were office bearers and it is in discharging the duties.
We are registered society in Pune under registration no. PNA/PNA/(1)HSG/7324/2005-2006 dated 19.05.2005.
Hoping to get your reply with reference to MS cooperative societies Act.
I C Naik
I guess you want to know if the Society can bear this cost. The Society’s funds can be applied to attain the objects of the Society as specified in the registered bye Laws.
The current incumbent Secretary should ask those members who are in favour of paying such Court expenses as to which bye law provides that court cases to defend the office bearers who were defending the criminal defamation suit slapped on them for defaming the petitioners shall be paid out of society funds. In the absence of a proper replay even general body resolution if passed to pay such costs will be ultravires.