I am a member of Bharat Co-op Housing Society, Andheri, Mumbai. MC have charged us 20% of lease charges as additional maintenance charges just to provide Noc. We are fighting this case.
Now my query is as follows-
What are consequences of MCM not having signed M 20 BOND IN 2005 AND 2008. DO THEY cease to be MCM if they haven’t signed this bond?
I C Naik
You have two questions:
- Prospects of member’s fight against “20% of lease amount charged as additional maintenance charges just to provide Noc”
- What are the consequences of elected members to Management Committee failing to execute M20 Bond post elections in 2005 and 2008?
I have assumed the society has registered Model bye-laws 1984 as indicated by two elections year 2005 and 2008 (3 year tenure under bye-law No. 115]. After 2001 the tenure of Management Committee was raised to 5 years (BYE-LAW NO. 116). The first registered bye-laws are still in force.
Issue 1
In Model bye-laws 1984 NOC (“No objection Certificate” ) appears twice :
- in bye-law No. 40(viii) to submit ‘No objection’ certificate, required under any law for the time being in force or order or sanction issued by the Government, any financing agency or any other authority;
- in bye-law No. 45 (iii) (c): he shall pay non-occupancy charges to society.
If it is as per 2, then any amount claimed in excess of 10% of Maintenance (excluding taxes) is illegal and members who paid it are entitled to claim refund by a petition in Cooperative Court or in Consumer Court or both simultaneously. If Noc here means what is stated in bye-law No. 40 then also neither the Management Committee nor the members in General Body Meeting has such a power.
Issue 2 Failure to execute M20 Bond:
With effect from September 2012 condition of execution of M20 Bond by members elected to Management Committee of a co-operative housing society was removed. However, for the period prior to September 2012
In the M C S Act 1960, Sub-section (1AB) was inserted by Mah. 41 of 2000, s. 3, (w.e.f. 23-8-2000).This Section provided inter alia the following: ”Every such member shallexecute a bondto that effect within fifteen days of his assuming the office, in the form as specified bythe State Government by general or special order. The member who fails to execute such bond within thespecified period shallbe demand to have vacated his office as a member of the committee. “ The M C R 1961 (R58) prescribed the format of M20 Bond for this purpose.
The Government of Maharashtra vide GR No. CSL – 2012 / P.R. 402 / 15 – S, Dated 06.09.2012 announced using powers U/s. 157 of MCS Act, 1960 an exemption to housing societies from requirements of M20Bond. Vide Section 26(a)(i) of the Maharashtra Cooperative Societies (Amendment) Act 2013 [w.e.f. 14 2 2013] deleted the portion of Section 73[1AB] requiring execution of Indemnity Bond (as extracted above) was deleted. Consequence of non-compliance of execution of M20 Bond by members elected to Management Committee during the period 23 8 2000 to 6 9 2012 was the member would cease to be a member of the Management Committee automatically.
However, now the fact of members elected in 2005 and 2008 having ceased to be the members of the Management Committee is merely of academic importance. If there was a provision of disqualification to join the Management Committee for certain duration then perhaps it may have consequences.