By I C Naik
The Deputy Cooperative Registrar (K East) Mumbai (the DR) removed Secretary and two Committee Members of one Estate Premises society in Mumbai. https://www.indiancooperative.com/from-states/how-a-dy-registrar-misguides-people-in-mumbai/ They were Associate members, but not jointly owning the flats as so required under the 2014 Model of Housing Society Bye Laws. The person in authority of the level of the DR failing to distinguish the Model Bye-Laws against the registered bye-laws made me recall a few (true) incidents I encountered earlier.
A Treasurer of a housing society once told me “I always wonder, why my Chairman looks up in to three sets of bye-laws (1) the registered bye-laws, (2) Model 2001 and (3) Model 2009) one by one for tackling every issue referred to him.” He also observed that on an issue whichever bye-law suited his instinct the most he would command the committee to endorse that view.
In another case a question was put to a very senior Chairman about a ceiling on one time repair expense in excess of which the general body’s prior sanction was required. His response was that the Commissioner has recently enhanced the ceiling on the repair expenses in the latest Model bye-laws. Now several repair items will be approved by the committee which will help cut the delays. The Society operates on its bye-laws registered by the builder.
There was yet another case. One very senior co-operator frequently used to call me up with questions. Once I asked him “did you get a certified copy of the bye-laws as I had suggested? He said “No No copy, I am thinking of going for an original and the latest from the market!!!
In all these true stories one common message was that including even the DR many seniors are blissfully ignorant of a true character of the bye-laws of cooperative society and the Models recommended by the Commissioner from time to time.
In Wikipedia,.“A by-law is a rule or law established by an organization or community to regulate itself, as allowed or provided for by some higher authority. The higher authority, generally a legislature or some other government body, establishes the degree of control that the by-laws may exercise” Within a broad statutory framework laid down by the State Legislature common for all co-operative societies, the globally accepted definition and cooperative principles requires framing of a detailed internal regulations – called the bye-laws for each and every co-operative society. The Model bye-laws are draft guidelines to prospective members to write their own bye-laws and register them as their society’s bye-laws. Model bye-laws can not govern any housing society unless they are registered as that society’s bye-laws after at least 2/3 members agree to abide by the same vide a resolution passed in the General Body Meeting. The Supreme Court of India in Zoroastrian Co-Operative Housing Society Limited Rd-Sc 253 (15 April 2005) held.” The bye-laws of a cooperative society setting out the terms of membership to it, is a contract entered into by a person when he seeks to become a member of that society.” Implicit herein is that the contracting parties themselves must pen down the terms of the contracts they enter in to before registering a society. “They (bye-laws) merely govern the internal management, business or administration of a society and may be binding between the persons affected by them but are neither law nor do they have the force of law.- Supreme Court of India in an earlier case of Co-Operative Central Bank on 3 April, 1969[1970 AIR 245, 1970 SCR (1) 206]
Co-operative Society registered under any State law is governed by the Constitutional Provisions in the “Part IXB Co-operative societies” [Article 243ZH(c) inserted through 97th Amendment in 2012. The formation of co-operative society is a fundamental right of every Citizen and vide Article 43B [also newly inserted directive principle of the State Policy] every society is supposed to run as an enterprise voluntarily formed, professionally managed and democratically controlled by its members. The registered bye-laws enable societies manage themselves with democratic member control free from external interference and in conformity with these expectations. Since the State under the British colonial mind set introduced the practice of approving the model bye-laws, the people forming cooperative societies did not on their own nurture an inclination to forming the principles of managing their co-operatives based on the above stated principles. Particularly because the builders were made responsible to register cooperative housing societies, that they did not promote participation of the members of the C H S in drafting bye-laws. For them Model bye-laws came in handy. The members have been kept illiterate/ignorant driving them to indifference. Now Article 243ZO(3) of the Constitution expressly desires that the Legislature of a State provides by law, for co-operative education and training for its members.