Legal powers of an association not for profit
P.C. Joshi
(Querist) 29 July 2013
This query is : Resolved
Dear Friends,
Certain traders relating to a particular industry formed an Association for the welfare of industry and other common benefits.
The Association has formulated a Quality Assurance Policy to say that members can voluntarily pay some contribution and the Association set up quality parametrs and those who fulfil the quality parameters are issued a sticker/label by the Assciation, which also ensure the consumer that they can rely on the quality. The quality policy says that the members whose products do not meet quality standrds, the association can file legal suits against them.
I want to know your views whether such stipulation by the Association is legally tenable.
Thanks
P.C. Joshi
Nadeem Qureshi
(Expert) 29 July 2013
its depend on the bye laws of association
Raj Kumar Makkad
(Expert) 30 July 2013
There is no illegality in doing so rather sch efforts shall increase the credibility of such traders.
P.C. Joshi
(Querist) 31 July 2013
Thanks a lot to both the learned members.
Dear Raj Kumar Ji,can the above Assoctaion(which is registered under Societies Registration Act, 1860)make such rule and take a legal recourse against the defaulting members without having such powers in MOA & By Laws. \
Second query is whether this asscoiation will be covered under RTI Act. In my opinion No. Because, it is not a "State"(central or State) of formed by state.
Pls let me have your views.
Thanks
P.C. Joshi
