Cooperative housing society related queries

Rajendra Mittal

We would like you to give us the details regarding the following queries:

1) We issued a no confidence motion against the managing committee of our society and demanding for a Special General Meeting which was overlooked by the managing committee. What further action can we take against the managing committee?

2) The conveyance committee of our society was appointed in the Special General Meeting through the resolution passed. Can the managing committee dissolve the conveyance committee as per the bye laws?

3) Out of the total number of members in our society, what is the minimum number of members required to call for a Special General Meeting? What action can be taken if the meeting is not called upon by the managing committee?

We would be highly obliged if you could revert back to our above mentioned queries.

I C Naik

This response is based on the assumption that Rajendra Mittal is a member of housing society registered in India prior to the year 2000 and its Bye Laws are based on 1984 Model Bye Laws.

i. Members are not entitled to move no-confidence motion against the Committee.  Following Bye Law does not entitle the members to do so.

126. (a) Every Committee, at its first meeting, after its election, shall elect a Chairman, a Secretary and Treasure from amongst the members of the Committee.

(b) The Chairman/Secretary and Treasurer of the Society shall hold office for the period of 35 years from the date on which he is elected to be the Chairman or as the case may be the secretary and the Treasurer but not beyond the expiry of term of the Committee.

Provided that he shall cease to be the Chairman, or as the case may be the Secretary of the society or Treasurer of the Society if the motion of ‘No Confidence’ is moved in the special meeting of the committee called, and presided by the Registrar or such officer not below the rank of Assistant Registrar mupon the notice given by 1/3rds members of the committee and the motion of ‘No Confidence’ is passed by 3/4ths members present at such meeting, having attendance of at least 2/3rd members of the committee.

ii.  Rules of holding Special General Body Meetings are given in Bye-Law No 96-99 which briefly meant for your question :

a) A special general body meeting of the society may be called within one month of the date of the receipt of requisition, in writing, signed by at least 1/5th of the members if the society or from the Registering Authority or from the Housing Federation, to which the society is affiliated. The meeting so convened shall not transact any business other than that mentioned in the notice of the meeting.

b) The requisition for the special general body meeting of the Society, within 7 days of its receipt, before the meeting of the Committee, by the Secretary of the society, for fixing the date, time and place for the special, general body meeting of the Society.

c)  The committee shall decide the date, time and place of every general body meeting of the society and the business to be transacted threat, provided that the business to be transacted at the requisitioned special general body meeting shall be only that mentioned in the requisition.

d)  The notice convening the general body meeting shall be issued by the Secretary of the society of the Society accordingly. On his failure to issue the notice, the Chairman shall issue it.

e)  In case of the annual general body meeting, 14 clear day’ notice and in the case of the special general body meeting, 5 clear day’s notice of the meeting shall be given to all the members of the society, under intimation tothe Federation andto the Registering Authority.

f)  In case of an emergency, the special general body meeting may be called even at a shorter notice, if the Committee unanimously decides to call the special general body meeting at a shorter notice.

iii. The managing committee cannot reverse decision of the general body meeting . This is based on following Bye Laws:

111. Subject to the provisions of the Act, the rules and the Bye-laws-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 this bye-laws.

112. 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.

113. Subject to the direction given or regulation made by a meeting of the general body meeting 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. 139.

iv.  Suggestion:

a.   The Committee’s decision to dissolve the conveyance committee amounted to contempt of the members and it is a matter which can be brought to the notice of the Registrar.

b.   The decision to dissolve a committee can be made a subject matter of dispute in Cooperative Court as it is covered by Model Bye Laws approved later.  Although your Bye Laws do not have this provision the Society can still take it up in court.

c.   Section 148(3) of the M C S Act 1960 provides that “( 3) No prosecution under this Act shall be lodged, except with the previous sanction of the Registrar.” So ask for this permission of the Registrar to go to Cooperative Court. The Registrar will informally intervene and matter may solved without further actions.

d.   The members can make a show of their strength (if any) by requisitioning a meeting to reconstitute redevelopment committee (not that such committee is a must) and follow steps including a implied threat to go to the Registrar for suspension the Committee though it is not an effective step any more,  (which is now prohibited  which was earlier ) permitted under 78 of the M C S Act 1960.