Milind Correa
I’m a resident at Kailashchandra Co-op Housing Society in Malad (East), Mumbai. My father is a member of the society & on Monday 29th June 2015 I went to the society office to apply for an Associate Membership.
The committee members including the chairman & secretary were present in office when I approached them to consult regarding application for Associate Membership & they bluntly denied citing the reason that though the New Model Bye-Laws were adopted in May 2015 via a General Body Meeting, it is still pending for approval with the Deputy Registrar.
Only when the Deputy Registrar approves the New Bye-Laws (which takes 3 months they said) for the society will I be able to apply. My queries are;
1) Is the reason given by my society committee justified? On what grounds can they deny an application?
2) If it is wrong to deny an application on the reasons given by them, how do I take action against them & have my application processed?
The irony is that our society is gearing up for elections next month (26th July) based on the New Bye-Laws. Kindly advice.
I C Naik
CASE IN BRIEF
Milind Correa wants to become Associate member of Kailashchandra CHS in Malad (East), Mumbai of which his father is a member. The Office bearers advised him to wait for approval of the latest Model bye laws adopted in General Body Meeting on May 29th which are awaiting approval of Dy Registrar who has three months to act. Milind is not reconciled with this idea also because he wonders as to how Kailashchandra CHS was preparing for elections on 26th July based on new bye laws!!!
RESPONSE
This is a fit case to really understand CHS law substantially.
There are so many misgivings that analyzing each one will almost unfold CHS law embedded in to MCS Act 1960.
Younger generation (Milind) wants to take interest in the affairs of CHS so he wants to formally associate with the Society as its Associate Member. The Committee instead of appreciating Milind, dampens his spirit and advances a totally baseless argument devoid of commonsense. They are pre-determined to postpone attending to any issue on the pretext of pending approval to New Model bye Laws. They are ignorant of the fact that the Model Bye Laws are already approved by the Commissioner of Co-operation and the Registrar of Cooperative Societies Maharashtara, Pune and the Dy Registrar does not have to exhaust all three months at his disposal to register them. He can do it in one week. The Office bearers are ignorant of the law that sub-section 1 of Section 13 of MCS Act 1960 impliedly directs the Dy Registrar that “ [Every application of registration of an amendment of the bye-laws shall be disposed of by the Registrar within a period of two months from the date of its receipt.” The reason is Management Committee is not bothered to know the correct law.
There is a huge misunderstanding or an ignorance of the fact that the Dy Registrar is not an authority to approve amendments to Bye Laws. He is to register them, His duty is very clearly laid down in law in these words: (1B) “No amendment of the bye-laws of a society shall be registered by the Registrar under this section or in the case of the bye-laws which are deemed to have been registered shall have effect, if the amendment is repugnant to the policy directives, if any, issued by the State Government under section 4.. His duty is limited to see that amendment is not repugnant to Policy of the Government declared under Section 4. When the Model Bye law is approved by the Commissioner of Co-operation and the Registrar of Cooperative Societies Maharashtara, Pune where is the need for Dy Registrar to take three months (2 months as per law) to check the Policy?.
Does the Committee stop functioning pending so called (misconceived) approval to new Model? Till the time amendment is approved CHS is governed by its existing bye Laws.
What is the provision as per the existing bye laws to admit a person as an Associate member is to be adhered to by the Committee and if it is not followed it does at its own peril. Unfortunately members are also not aware as to how to become an Associate member. Milind goes to Society office for guidance and the Society Office Bearers take him for a ride. Why does he not take trouble to get a certified copy of his Society’s registered Bye-Laws [Which costs him Rs 100 maximum] and find out himself as to what is the procedure and what are his rights? He seems to have in mind a wish to join the Management Committee as Associate member since many societies have Associates on the Committee though Society’s registered Bye-Laws do not permit.
He is confused as to how Elections are being conducted as per New Model Bye Laws when they are not likely to be approved before elections are held has merits though not not directly. The Elections are to be held as per New Election Rules namely the Maharashtra Co-operative Societies (Election to Committee) Rules 2014 irrespective of the fact if New Model Bye Laws have come in to effect or not. The significance of this lies in the fact the strength of the Management Committee is fixed under the Bye Laws and if new Model is not registered the strength of the Management Committee to be elected shall have to be limited to the same as per current Bye Laws.
Reverting to Milind becoming Associate member before election seems to be difficult especially because the Management Committee is not knowledgeable enough to take immediate action. Also because Milind is late for that purpose. Had he already filed valid application as per current bye Laws despite non-action of Management Committee, after lapse of two months from the date of Secretary accepting application he would have automatically become Associate member as that is the provision as per Bye Laws. If Milind waits till the adopted Model is registered, he will never be admitted to Associate Membership. Obviously Milind is not a joint signatory to flat purchase agreement along with his father, as in that case he would have been an Associate Member already. He would never be admitted to Associate Membership after New Model becomes effective. The reason is new Model has revised the definition of Associate Member as under.
Bye Law No 3 XXIV(b).
“Associate Member” means a Member who holds the right, title and interest in the property individually or jointly with others, but whose name does not stand first in the share certificate;
Bye Law 3XXIV(a)
”As per Society’s registered Bye-Laws Associate member is “Associate Member’ means a member who holds jointly a share of the Society with others, but whose name does not stand first in the share certificate.
This elaborate answer is given with a view to encourage members to go for grabing a copy of Society’s registered Bye-Laws and study them carefully to prevent unintended miss-management by ignorant Management Committees.
It is very doubtful if Milind could succeed if he were to challenge definition of Associate Member as per new Model Bye Laws on the ground that it is in violation of Clause 19(b) Section 2 of MCs Act 1960 which provides that “associate member” means a member who holds jointly a share of a society with others, but whose name does not stand first in the share certificate.