Sections 9-11 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 9 to 11 deal with the society's remedies against its own members. Section 9 lets a society recover a pecuniary penalty imposed by a bye-law. Section 10 allows a member to be sued for arrears of subscription, or for detaining, injuring or destroying society property. Section 11 says a member who steals, embezzles or forges is prosecuted like any outsider.
This article follows the copy of the central Act consulted (last updated 30 July 2019). The Act is applied State by State, and many States have amended it or replaced it with their own Act, so the State law must be checked. A society facing a recovery or a claim against a member can take advice through our legal dispute resolution service.
A pecuniary penalty for breach of a rule or bye-law can be recovered in a Court only if the bye-law was duly made, and where the rules do not provide for bye-laws, only if made at a general meeting by the concurrent votes of three-fifths of the members present (section 9). A member can be sued like a stranger for arrears, detention of property or damage (section 10), and is liable to the same prosecution and punishment as a non-member for theft, embezzlement or forgery (section 11).
Section 9: recovery of a penalty under a bye-law
Section 9 begins "Whenever by any bye-law duly made in accordance with the rules and regulations of the society, or, if the rules do not provide for the making of bye-laws, by any bye-law made at a general meeting of the members of the society convened for the purpose (for the making of which the concurrent votes of three-fifths of the members present at such meeting shall be necessary), any pecuniary penalty is imposed for the breach of any rule or bye-law of the society, such penalty, when accrued, may be recovered in any Court having jurisdiction where the defendant shall reside, or the society shall be situate, as the governing body thereof shall deem expedient."
There are two routes to a valid penalty bye-law.
| Situation | How the bye-law must be made |
|---|---|
| The rules provide for making bye-laws | In accordance with the rules and regulations |
| The rules do not provide for bye-laws | At a general meeting convened for the purpose, by the concurrent votes of three-fifths of the members present |
Four features stand out.
- The penalty must be pecuniary, that is, a sum of money. The section does not provide for suspension, expulsion or other sanctions; those depend on the rules. See our guide to members: admission, rights and removal.
- The three-fifths is of the members present at the meeting, which is a different base from sections 12 and 13, where three-fifths of members is counted by votes delivered in person or by proxy.
- The penalty is recoverable "when accrued", that is, after it has fallen due.
- The governing body chooses the Court: any Court having jurisdiction where the defendant resides or where the society is situate, "as the governing body thereof shall deem expedient".
A caution on the word "member". Section 15 defines it, and excludes from voting and counting any person whose subscription is in arrear for a period exceeding three months. That affects who may vote at the general meeting that adopts the penalty bye-law. See sections 15 and 16.
An example. The "Greenfield Sports Club Society" has no clause on bye-laws in its rules. At a general meeting convened for the purpose, 40 members are present, and 26 vote for a bye-law imposing a fixed sum for damaging the club's equipment. Three-fifths of 40 is 24, so the resolution passes. Had only 23 voted for it, it would not. Where the rules do provide for bye-laws, the rules' own method applies.
Section 10: members liable to be sued as strangers
Section 10 says a member "who may be in arrear of a subscription which according to the rules of the society he is bound to pay, or who shall possess himself of or detain any property of the society in a manner or for a time contrary to such rules, or shall injure or destroy any property of the society, may be sued for such arrear or for the damage accruing from such detention, injury, or destruction of property in the manner hereinbefore provided."
The "manner hereinbefore provided" refers back to the suit by or against a society in section 6, with the society suing in the name fixed by its rules. Our article on sections 5-8 covers that.
There are three grounds:
- arrears of a subscription the rules oblige the member to pay;
- possessing or detaining society property contrary to the rules, in manner or time;
- injuring or destroying society property.
Costs of a successful defendant
Section 10 carries an old side-heading inside the text, "Recovery by successful defendant of costs adjudged". It is part of the print, not a separate section. It says that if a member sued at the society's instance is successful and is adjudged to recover costs, "he may elect to proceed to recover the same from the officer in whose name the suit shall be brought, or from the society, and in the latter case shall have process against the property of the said society in the manner above described".
So the member who wins has a choice of whom to proceed against for the costs: the named officer or the society. If the society is chosen, the costs are recovered against the society's property, as section 8 describes.
Section 11: offences by members
Section 11 deals with a member who "shall steal, purloin or embezzle any money or other property, or wilfully and maliciously destroy or injure any property of such society, or shall forge any deed, bond, security for money, receipt, or other instrument, whereby the funds of the society may be exposed to loss". Such a member "shall be subject to the same prosecution, and, if convicted, shall be liable to be punished in like manner, as any person not a member would be subject and liable to in respect of the like offence."
Membership gives no immunity. The section does not name the offences or the penalties; it only says that the member is treated like a person who is not a member. It does not say who must file the complaint, and it prints no time limit.
Example: an honorary treasurer, Kiran Rao, is found to have taken funds from the society's account for personal use. Section 11 means the same prosecution and punishment apply as if Kiran were a stranger. The governing body should keep its own records in order, and our guide on dispute resolution in societies discusses how disputes are handled internally and before a Court.
What these sections do not say
- Sections 9 to 11 contain no power to expel a member or to remove an office-bearer.
- They set no amount for any penalty or subscription.
- They name no forum other than "any Court having jurisdiction" in section 9.
- They give no period within which a suit or prosecution must be started.
Need help with a recovery or a dispute in a society?
If your society wants to recover dues or damage from a member, or a member has received a demand from a society, our legal dispute resolution team can review the rules and papers. We read the bye-laws, the subscription records and the notice before suggesting a course.
Key takeaways
- A penalty bye-law is enforceable only if duly made: per the rules, or at a general meeting by three-fifths of members present.
- The penalty is pecuniary and is recovered after it has accrued, in a Court the governing body deems expedient.
- A member can be sued for arrears of subscription, for detaining society property, or for injuring or destroying it.
- A successful defendant may recover costs from the officer or from the society.
- A member who steals, embezzles or forges is liable like a stranger.
Read next
- Dispute resolution in societies: internal and in Court
- Members of a society: admission, rights and removal
- Sections 5-8: property, suits and enforcement of judgment
- Sections 15 and 16: member and governing body defined
Disclaimer: Based on a copy of the Societies Registration Act, 1860 last updated 30 July 2019 and on copies of the Haryana (2012), Karnataka (1960), Rajasthan (1958), Tamil Nadu (1975), Uttar Pradesh and West Bengal (1961) societies laws, each amended only up to the date its copy shows, as consulted on 2 October 2026. Societies law differs from State to State; later amendments, State rules and current fees should be checked. This article is general information, not legal advice; check the official text before acting.