Co-operative Housing Society & Committee

By I C Naik

1.The society having been formed in Dec 2014, (it would have been better if name, address and rg. No. were mentioned), Model 2014 Bye-Laws (approved by the Commissioner for Cooperation and the Registrar of Cooperative Societies on 1 11 2013) must have been forced upon the society.  The builder has discharged his legal obligation of forming a housing society as so prescribed under Section 10(1) of MOFA1963. As required under MOFA there is a bank account opened by builder in the name of the society , about which the builder has not told you.

2.Unfortunately, the more critical obligation of the builder is NOT laid down under MOFA 1963 but it is prescribed under the MCS Act 1960.  Sec 73[1A] of the MCS Act 1960 provides “(a)the first general meeting of a society shall be convened within three months from the date of its registration to appoint a provisional committee and to transact other business as may be prescribed. The term of the members of such provisional committee shall be for a period of one year from the date on which it has been first appointed or till the date on which a regular committee is duly constituted in accordance with the provisions of the rules or bye-laws made under this Act, whichever is earlier; and all the members of such provisional committee shall vacate office on the date of expiry of such period or such constitution of the committee.”

(i)By making a default of not handing over the society management to Provisional Committee, the developer has retained the management with himself committing an offence as aforesaid. There is no law under which the builder can be tried for this offense.

(ii)  As if to absolve the builder of such important obligation as the Chief promoter the MCR 1961 provides “59. First general meeting:- (1) Within three months from the date of registration of a society, the Chief Promoter thereof, shall convene the first general meeting of all persons who had joined in the application for registration of the society. Where the Chief Promoter fails to convene the meeting as aforesaid, it shall be convened by any person authorized in that behalf by the Registrar.

(iii) Even the Commissioner for Cooperation and the Registrar of Cooperative Societies has also provided for an escape to builder,through Bye-Law No 86,  providing: On failure of the Chief Promoter of the Society to hold the First General Body meeting within the period mentioned in bye-law no 86, the Registering Authority shall cause it to be convened. It is not a secret as to how efficiently the the Registering Authority functions. If he does not convene, what is an adverse consequence to the Registering Authority ? Nothing.

3.So where is the remedy? The builder is found lacking in completing his role. He has not provided an important service and has allowed the flat owners to sublet the flats in large numbers to the detriment of genuine residents.  Neither MOFA nor the MCS Act 1960 has a remedy. May be a few of you can try informing the Registering Authority to convene the first meeting. Even if it is held the Builder has to hand over to Provisional Committee a host of Records of the newly registered housing society and how will the Registering Authority force the Builder to do that.

4.So you (even one person is enough) should go to the office of the District Consumer Court and meet the Court’s Registrar and talk to him of this problem. He should advise to file a complaint against the Builder/Chief Promoter and make a written prayer in that complaint to direct   the Builder/Chief Promoter to make good the deficiency as aforesaid. You do not need a lawyer. You can write a simple letter giving full facts (not too brief like what you wrote to me), and ask for date of hearing. Maximum 6 months or even in three months you should expect a relief. Pray for Damages and compensation for members’ anxiety stress as also the unmindful approvals to let members sub-let. If you see the applications filed by members (With Builder in Form 2), they all said they intend to reside in the I society themselves.

If you need more guidance do write to me with more facts that you know.