Reimbursement of legal fees paid by society

Hi Jacqueline,

The reimbursement of legal fees paid by the society can be claimed back from the applicants if a valid resolution is passed at the AGM, provided that the society’s bylaws allow such recovery and the legal expenses were incurred due to frivolous or unjustified litigation by the applicants.

If the legal case filed by the applicants was dismissed or ruled in favor of the society, the society may seek compensation for legal costs through a counter-claim or cost application in the same case. However, if the applicants had a valid legal basis for their claim, forcing them to reimburse legal fees may not hold up in court.

The AGM resolution must be legally sound, ensuring it does not violate principles of fairness and natural justice. The society must also check whether the bylaws provide for recovering legal expenses from individual members. If such a provision is absent, a general AGM resolution alone may not be sufficient, and legal consultation is advisable before enforcement.

For further consultation, reach out at adv.vishesh@icloud.com.

The society cannot claim the litigation expenses against the members who filed case against society.

The society's bylaws cannot be legally valid in the court of law even there was any resolution passed to this effect.

If the case filed by the members was dismissed then the society may be able to claim costs of the litigation.

Thank you.  Your replies are a big help.

It is a matter within the Court's discretion whether to grant costs or otherwise.