Shashank Bendre
A certain decision was given by a managing committee on a matter regarding sharing of charges for repair of internal water leakage from my flat into the garage below owned by another member. The garage owner said in the meeting when the decision as taken that “I will not abide by this decision” but was over ruled. He also neither contested the decision after this nor did he make a written representation in this regard. The last Annual General Body meeting under this committee was held in Sept 2013 after elections. In this AGM too, this decision was not contested by the garage owner and therefore there was no reference to this matter. The term of this committee ended in Sept 2013.
The new managing committee formed has reversed the decision in December 2014.
Can the new managing committee reverse the decision of the previous managing committee after 1 and 1/2 years have elapsed?
I C Naik
Short question is whether the managing committee in office can reverse the decision taken by its predecessor?
There is no bar on the managing committee to reverse its earlier decisions. Bye-Law No 110 .can be considered as a bench mark for reversal of society decisions, though it talks of decision in annual general meeting QUOTE: “No resolution can be brought at a general body meeting of the society, canceling its previous resolution, unless 6 clear months have expired, after passing of the previous resolution. UNQUOTE
Managing committee of the Society is supposed to take fair decisions in the interest of the Society and its members and most important it must be a fair decision free of biases and prejudices. In order to establish this, the decision must precede by a proper explanation as to why the managing committee though it fit to reverse the earlier the decision.
Another basic rule is that for taking a legally enforceable decision the managing committee must be one conforming to requirement of Bye-law 111 QUOTE: The Management of the affairs of the society shall vest in the Committee duly constituted in accordance with the provisions of the Act, the rules and the bye-laws of the Society UNQUOTE
This Bye-law is backed by a statutory provision under Section 73(1)of the M C S Act 1960 QUOTE: 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. UNQUOTE
Whether the constitution of the Committee which reversed the decision of the previous committee satisfies the above two provisions needs to be examined. My answer is no going by the following two statements found in your mail.
QUOTE:
1.The term of this committee ended in Sept 2013.
2.The last Annual General Body meeting under this committee was held in Sept 2013 after elections.
UNQUOTE
This leads to a conclusion that the Committee which reversed decision as aforesaid was constituted in September 2013.
The Maharashtra Cooperative Societies (Amendment) Act 2013 which came in to force on 14 2 2013 has inserted Sub-Section 4 in Section 166 of the M C S Act 1960 a relevant part for our purpose is quoted below. QUOTE: Notwithstanding anything contained in this Act, as amended by the Maharashtra Co-operative Societies (Amendment) Act, 2013, but subject to the provisions of sub-section (15) of section 73CB, the committees of which the elections become due after the 31st March 2013,shall continue till the elections to such societies are held under the provisions of this Act as amended by the said Act.
UNQUOTE
You might have read posts on www.indiancooperative.com that Minister of Cooperation of Maharashtra has announced that elections due in cooperative societies will be completed before June 2015 and in case of smaller housing societies it will be completed by December 31 2014.
The managing committee of your housing society constituted in September 2013 has no legal sanctity as according to law the previous committee was to continue in office.
You may bring the content of this answer to the present Chairman with a request to restore the earlier committee in office. You have the chance to get the reversal of decision revoked by the proper committee in office.
If they do not heed, you may write to the Registrar but that is not advisable as your society has a danger of authorised person from the Registrar’s office taking over the management for at least next six months as provided under Section 77A of the M C S Act 1960.