Ours is a newly formed housing society in Mumbai. In first SGM, the members passed cultural events charges of Rs.300/- per month per flat, a mandatory charges. My submission is follows:
- This charge has nothing to do with building upkeep or infrastructure.
- Managing committee has responsibility of running day to day affaire of the society. Cultural events is not their job.
- Hence, such obnoxious charges are illegal and not in right spirit.
can i go to the registrar and bring a stay on collection of such charges?
I C Naik
RESPONSE
The management committee’s role is laid down U/S 73 in these words: “(1) The management of every society shall vest in a committee, constituted in accordance with this Act, the rules and by-laws, which shall exercise such powers and perform such duties as may be conferred or imposed respectively by this Act, the rules and the by-laws.” The act and the rules are public documents and uniform for all classes of cooperative societies. Look at the extreme situation here. Every Cooperative Society is governed substantially as per the provisions made in its own registered bye laws, which are specific to the Society. I can guess that Model 2014 of the bye-laws must have been forced upon by the Registrar of Cooperatives and builder must not have discussed with the Promoters i.e. Flat Purchasers.
Bye Law No 112 lays down that “Subject to the direction given or regulation made by a Meeting of The General Body of the Society, the Committee shall exercise all powers, expressly conferred on it and discharge all functions entrusted to it under the bye-law No. 138.”
Function No 35 of Bye Law No 138 reads: ” To consider and decide any other matters provided under the Act, the Rules and the Bye-laws of the society Regulations made by the general body meeting but not expressly indicated hereinabove” This gives the role to the Committee to get in to cultural activities which is the object of your society vide bye laws No5(d) “To undertake and provide for, on its own account or jointly with a cooperative or Other Institution Social, Cultural or Recreational activities;” Who will attaim this object? Will there be any other
Committee functioning independently of elected management committee.
The Committee is bound to function in accordance with the Society’s registered bye laws. There is a specific unambiguous provision in the bye-laws of your housing society. Please down load 2014 Model from this URL.
Compare in with the registered bye laws of your housing society , and make corrections in your copy if you find any. Should not find as they are ovenfresh.
You should find Bye Law No 148 in that. For making it easy I have extracted only relevant portion thereof.
(a)After providing for the interest upon any loans and deposits and after making such other deductions as required under Section 65(1) and 66 of the MCS Act 1960 and Rule 49A of MCS Rules 1961, twenty five percent (25%) of the net profit of all the business carried on by or on account of the Society, shall be placed at the credit of the Reserve Fund of the Society.
(b) The remaining seventy five percent (75%) of the net profit of the Society shall be utilised as provided under Rule 50, 51, 52, 53 of MCS Rule 1961.
(iii). To allocate to a Common Welfare Fund, such part of the profit as the Annual Meeting of the General Body may determine, to be utilised in furtherance of the objects specified in the bye-law No. 5(d).
Peculiarity in housing society is that a minority acts in a manner oppressive to the majority. Normally general body meetings are attended hardly by 20-25% of the eligible members. In your case it could be 40-45% as it’s a newly formed housing society and this was the first special general body meeting. If you ask a few members
General body meeting has passed a resolution which is ultra vires the registered bye laws of your housing society : Bye Law No 111: Subject to the provisions of the Act, the Rules and the Bye-laws of the Society, the final authority of the Society shall vest in its General Body Meeting, summoned in such manner as is specified in these Bye-laws.
My responses to a similar questions was answered in greater detail which you can read as an additional material, whether wholly relevant to your question is you can decide.
https://www.indiancooperative.com/cooperative-queries/chs-monthly-funds-for-functions-and-welfare/
What is the remedy?
Now that you have the bye-laws, follow the steps listed out in bye-laws 172,173 1nd 174 and file a Complaint to the Cooperative Court as such complaint is listed in bye-laws at B(i). Prayer should be the Society may be directed to set up a Welfare Fund as provided in bye-laws and discontinue compulsaory contribution from members for cultural activities. Amonts collected if any shall be refunded forthwith.
You need not hire an advocate. It is open and shut case. Do not spend on lawyer as they will keep dragging.