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Home Cooperative Queries

Illegal penalty by Society

Ajay Jha by Ajay Jha
January 2, 2014
in Cooperative Queries
1
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Mahesh Khanna

Can a Society levy hefty penalty on a member? What are the documents that the member should demand from the society having levied the hefty penalty?

I C Naik

Depending on the Model Bye Laws registered by your Society Rules on Penalty for breach of Bye Laws by a member can be levied. 2009 Model has a Bye Law reading as under: 166.   

The meeting of the general body of the society may prescribe penalties for different breaches of the bye-laws of the society. The Secretary of the society, under instructions from the Committee, shall bring to the notice of the member concerned, the breach/breaches of the bye-law/bye-laws committed by him.

If the member persists on continuing the breach/breaches, the Committee shall give the notice to the member to show cause as to why the penalty should not be inflicted on him for breach/breaches of the bye-law/bye-laws. The general body meeting, after considering the say of the member and after giving him hearing, may levy penalty at the rate fixed by the meeting of the general body of the society,maximum penalty of Rs 1000/-

Any penalty  which has not  been levied in total compliance of this Bye Law is not enforceable and is illegal. A member who is illegally penalized should file a complaint and follow the procedure as per Bye Law Nos 173-175 F (c) a.     Levy of excess fine, by the Managing Committee for act of the member which is in violation of Bye-laws.

 

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Comments 1

  1. G.S.MUSAFIR says:
    11 years ago

    Dear Sir,

    I am Secretary Rajdhani Cooperative House Building (First) Society Ltd. Sector 49 A, Chandigarh registered. One of members has purchased a flat in the society on GPA share of which was transferred by the managing committee in his after charging transfer fee of Rs. 50,000/- which was deposited with the treasury under govt. head. Now the Chandigarh Administration have stopped transfer of direct sale. He wants that his wife’s name be included in the share. Is it possible to include her wife’s name in the share certificate whereas the shares have been issued to the member only by the Chandigarh Administration. Kindly clarify.

    Gurmukh Singh-09878647633

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