Nitin Sav

Hello sir,

My name is Nitin Sav. I live in registered society. I have kept my shoe rack outside my flat but the society members are asking me not to keep the shoe rack outside. Are so legally correct to say so?

I C Naik

You have encroached upon common area which belongs to the Society. It could be valid only if the General Body passes a resolution permitting members to keep the shoe rack outside the flat.  Presently you are committing breach of Bye Law 50 (a) Model 2009 approved for CHS in Maharashtra.

Shri I C Naik is on a vacation for a couple of days. Interestingly, we notice other readers such as Mr Paresh filling up the gap so well. Below is his take on a cooperative query.

Prasad

I have installed the cooling unit of the split AC on the exterior wall of my flat outside the grills. Our society has raised a notice against me for such installation and they are asking me to remove the cooling unit and install it on the grill outside my window. In case if no action is taken then society has threatened to slap penalty on me.

This matter was later discussed in AGM meeting & with majority they agreed that no one should utilize external wall outside the grills for any personal use. In AGM it is also decided that society can apply penalty of Rs 1000 in case of no action taken by member.

Is the AC connection made by me on the exterior wall not valid from legal point of view?

Also is society legally allowed to slap penalty to any member of society in such case?

Paresh

The society can levy charges IF AND ONLY IF a resolution to this effect has been passed in the General Body meeting. Since this was done, MC is within its right to exercise that option. Anything that alters the facade of the building is generally not approved.

IC Naik who was on vacation replies as following

I C Naik:

Use of exterior wall is prohibited by BMC. AGM also not empowered to permit such use. Split AC’s Cooling units can be installed in the Window grills but with the condition that it does not protrude outside the buildings external wall tarnishing the ambience of the Building.

As regards levying penalty the bye law No 165/166 (Model 1984/2009) lays down the procedure. For breach of any bye law general body meeting should prescribe the penalty beforehand. When a breach is noticed the Secretary should take it up in the Managing Committee seeking direction to send notice to member for taking corrective actions. If defaulting member persists the Secretary has to bring it in to Committee Meeting to send notice to member proposing penalty for approval of the general body meeting after giving an opportunity to the delinquent member to represent his case in the general body meeting.

As per bye law 166 (2009 Model) maximum penalty is Rs 1000.

Alteration of any type in the flat require prior permission as per Bye Law 47 (Model 2009) which includes installation of AC using any other space than originally provided.

It is important that rate of penalty for a specified action leading to breach of any bye law must be prescribed by general body meeting beforehand. Since exterior wall form part of the approved building plan doing any alteration is not covered by alteration in the flat and as such it is prohibited under BMC Rules. The member has to restore the position to its original and no amount of penalty can allow the member to continue with it.

Gundeep S Sodhi

We are an NGO named HOPE & HOPE registered in Punjab. In our search for making women empowered we came through cooperative societies and self help groups.

We have gathered that under cooperative department there are schemes geared at women empowerment. Thus we want to register a cooperative society in Punjab, kindly let us know the procedures.

I C Naik

Minimum 10 women of 18+ needs to sign an application to the Registrar of Cooperative Societies.

The Registrar must be satisfied –

(a) that the application complies with the provisions of the act and the rules,

(b) that the objects of the proposed society are in accordance with section 4.

(c) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and

(d) that the proposed society has reasonable chances of success, the Registrar may register the society, and its bye-laws.

S G Shenoy

Dear Sir,

Ours is a Cooperative Housing Society located in K-East ward of Mumbai. One of our Managing Committee members boycotted ten consecutive meetings.

He then started attending the subsequent meetings, stating that his absence from the meetings cannot be termed illegal. He argues that boycotting meeting was his right.  Please advise us whether his contention is right?

I C Naik

A person shall cease to be the member of the Committee “when he has failed to attend any three consecutive meetings of the Committee, without the leave or absence” as per Bye Law 120(1) (b) [Model 2009] 118(1) as per 1984 Model.

As per (2) of 118/120 “the Committee shall record the fact in the minutes of its meeting and the Secretary of the society shall inform the member accordingly.

Artha Tatwa Multi State Credit Cooperative Society ltd

Chandan Sahu

Good morning sir, \kindly give the information about safety investment in Artha Tatwa Multi State Credit Cooperative Society ltd

IC Naik

Any investment in a cooperative organisation faces higher risks as compared to a bank, where deposits up to One Lac are guaranteed.

Razak Jankhwala

I was elected in XYZ Bank but before election, a question with respect to loans was raised. It said “no loan should exist in the name of Director or his relatives”.

My victory was denied to me as they issued a letter containing names of the borrowers and in that my sister’s husband stood as a guarantor in one of the cases.

They insisted that I should pay the entire loan amount and change the guarantor before Annual General Meeting, otherwise they would disqualify as Director.

Later they carried out there threat and I lost the post. Is this a fair approach? Kindly provide me with the existing rules on the issue?

Thanks
Ca Razak Jankhwala

IC Naik

The disqualifications are listed out in the Bye Laws of the Society and are binding. So please check it in the Bye Laws

Documents needed for Multi State Cooperative Societies

Prasanna

Dear sir,

This is with reference to the registration process of a multistate cooperative society, as I visited your website I felt glad that you will help me in completing documentation part for applying MSCS. A few of my queries are as follows

Why is it necessary for a society to be registered under the Multi-State Co-operative Societies Act, 2002 ?

If yes what certificates are needed?

If you could send the scanned copy of documents it will be of a great help.

Waiting for your cooperation and support
Regards
Prasanna Kumar Pattnaik
Amalapada street, Phulbani
Kandhamal, Odisha – 762001

I C Naik

1. Advantage of a registered Society is the registration renders it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to acquire, hold and dispose of property, both movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue or be sued.

2. No certificate is intended to be issued for any of Sub-Clauses b, c, and d of Section 7 of The Multi-State Cooperative Societies Act, 2002, though it could be of any person, ready to hold himself accountable to prove the correctness of the content of the certificate to the satisfaction of the Central Registrar to the following effect.

(b) The proposed multi-state cooperative society satisfies the basic criterion that its objects are to serve the interests of members in more than one state;

(c) Its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the cooperative principles;

(d) That the proposed bye-laws are not contrary to the provision of this Act and the rules,

3. “How the proposed multi-State co-operative society has reasonable prospects of becoming a viable unit” – should be visible in the purposes for which a society is being registered and is a matter of fact differing in every society from any other.

Ajay Kamath

My name is Ajay Kamath K, and I am from Kerala. I am working in Kasaragod co-operative town bank ltd. no 970 my date of joining is 12 Feb 2009.

I want to take a long leave for the purpose of joining other company as I am a software developer and am not interested in cooperative banks. I believe co-operative banks are only for political work as they do not much education and yet they boasts of being an efficient Management.

I am fed up.I want to join Software Company of my cousin. Is there any provision for the same?

I C Naik  

Leave is part of contract of employment and it’s a privilege not a right, so the employer can deny the leave depending on the exigency of work of the employer. Best thing is to quit without wasting time. If unutilized leaves are there the rules providing for, some cash can be expected.

Payal Rai

My name is Payal Rai. My father took  87000 INR from Sahakari Awas Nirman Vitt Nigam, Uttar Pradesh Cooperative Housing Federation Ltd 1989/90. We deposited 100000 INR till the 2000.

Now my father is no more and he did not share his transaction with us. Suddenly we got auction notice from the society.

Luckily we have got receipt of deposit amount from our father side.

Sir, please suggest us how should we proceed in the matter as we have not enough experience.

I C Naik  

There has to be a demand notice from lender giving full details of amounts payable. The auction cannot be conducted without a court decree. So write to Sahakari Awas Nirman evm vitt nigam requesting for exact amount payable and how it was arrived at.

I do not think you need to worry too much about it. In the end rightfully due amount will have to be paid and I am sure it is not going to cost a fortune.

You can ask for moratorium and restructuring of payment schedule and even partial / full waiver of interest content. So handle it without getting panicky.

I am residing in a residential co-operative Housing Society at Vadodara, Gujarat.

Few members of the committee wants that the share-holders having their shops in the complex should be separated from the general administration, management, maintenance, etc. and they should manage their own affairs.

We have one common L-shape huge, 16 years old building structure, 4 Wings,10 floors each, around 152 residential flats,parking facility, a beautiful garden, small swimming pool, 24×7 security and 26 shops at the ground floor level, facing the road sides. Residential area and shopping area have absolutely isolated entries and approaches.

Sir

- Is it possible, if yes, then how to go about this?

-what model is both beneficial and practical for all the share-holders?

I know this for sure that, this is a common burning issue throughout the country and not just with us in Gujarat.

I hope to receive your guidance and some practical solutions for all of us. This would help make co-operative movement better, stronger, lawful and effective.

Best regards.

Dipak S. Sheth

D-901,’Nisarg’ Complex, Diwalipura, Vadodara – 390007,

I C Naik

Splitting of Housing Societies is not unthinkable and Society law also facilitates the same.

But it is not enough to have isolated entries and approaches for residential area and shopping areas.

Two physically separable clusters can reorganize and re-register as two distinct societies provided in every respect.

The two clusters can thereafter pursue their respective objects without any interruption from one cluster to another.

The common physical resources concerning power, water, drainage, lifts, passages all must be identified for each cluster and made accessible plus manageable to and by each one of them-independently without the need for approval of another.

If this is accepted by the 2/3 majority members of both the clusters what remains is a procedural obligation.

Dear sir

A cooperative housing society was registered in the name of Modi Xerox Employees’ Co-operative Housing Society Ltd. in the year 1995.

Land was procured, developed and plots were sold to the beneficiaries.  Most of the plots were sold to those persons who have more than one house and are not willing to construct any house in future.

The society President and Secretary along with their nominated members managed the things till now.  There was a huge amount of money with the society for future expenses and development. All of a sudden the Secretary went off. The president went off by resigning and they now say that there is no fund available.

Can the members constitute a new committee by election/nomination process and inform to Registrar?

Where to complaint against the persons who have eaten up the fund?

The present Secretary is hiding all the facts and protecting the previous President and Secretary. What action can we take against the present Secretary who is holding all the documents and funds?

With Regards

Co-ordination Committee Members

Modi Xerox Employees’ Housing Society Ltd.

Rampur (Uttar Pradesh)

I C Naik

This is a classic example of a phenomenon that has hampered the development of cooperatives the most. On one hand few members in every cooperative are hyper-active causing harm, on the other vast majority is completely indifferent to the activities of a suspect few.

This bodes ill not only for society’s interests but also for the interest of individual member.

What you need to do immediately is to handover a requisition signed by 1/5th members  to the Secretary requesting him to  hold an extraordinary general body meeting to review the functioning of the Society through a Special Audit/Investigation to be requested for by an application to the Registering Authority.

Before taking action for money laundering a reliable documentary evidence has to be gathered through this process. Once the audit/investigation report is in hands things should hopefully start falling in place.

If the Secretary does not act on the requisition, hand over the same to the Registering Authority.

Question:
I am George from Chittur District Kozijampara. I want to start a farm dairy as I have land in my name and my approximate production is 100 litres of milk per day. In a month it adds up to 3000 litres.
Will the society take milk if we wish to give or anything else you could suggest?

I C Naik:

Please Contact

Kerala Co-operative Milk Marketing Federation Ltd.,
Milma Bhavan,
Thiruvananthapuram-695004.
E-mail milma@milma.com

Website www.milma.com

Chairman 0471- 2555991/ 2555981
Managing Director 0471- 2555993

Ask them to put you in touch with the nearest milk collection centre.