State: Maharashtra
Soc. Reg. No. BOM (W-A ) / H.S.G. ( O. H. ) / 9191 / 95-96
The tenure of Committee expired on date 20.06.2017. A SGBM was held on 18.06.2017 wherein a particular contractor was appointed for Repairs. It is learnt that very next day i.e. 19.06.2017 the Committee signed the work contract with the Contractor and handed over to him a Cheque for Rs. 14 Lakhs.
As the above was executed the very next day it was obviously executed before circulation of draft minutes of the meeting to the members, receiving observations from them and approving the final draft of the minutes.
My humble query is that can the above execution by the Committee be considered legitimate as per Law.
Also kindly guide that now that the Tenure of the Committee has already expired on 20.06.2017 and that Elections to the New Committee have not taken place, does the previous Committee have the Locus Standi to Collect Repair Funds from Members, disburse payments to Contractor and others, call for and hold General Body Meetings and Execute Major Decisions on behalf of the Society.
I C Naik
As the State Government envisaged delay in set the State level election machinery in motion in time for ever cooperative society to have new managing committee in place before the expiry of the tenure of 5 years of the Committee in charge an escape rout is provided in the M C S Act 1960 by way od Sub-Section 4 to Section 166 thereof. Relevant part is quoted below:
“(4) Notwithstanding anything contained in this Act, as amended by the Maharashtra Co-operative Societies (Amendment) Act, 2013, …. the committees of which the elections become due after the 31st March 2013,shall continue till the elections to such societies are held under the provisions of this Act as amended by the said Act.
This should put all doubts at rests.