Query of Shonali Naik

Shonali Naik

I have been reading queries and their solutions on indiancooperative.com and have felt immensely enriched by the knowledge. Encouraged by your nuanced response to CHS issues, I am writing this mail to you hoping to receive your guidance.

I reside in a CHS in Navi Mumbai,Maharashtra. There are 133 members in all and 10 Managing Committee members.Of late,the Man Common has undertaken painting cum repair work in our society,which to the best of my knowledge is in violation of the MCS Act & Byelaws. I have highlighted some prominent below:

1)In the agenda for AGM in July 2016,the Secretary mentioned about the need for painting work which was discussed during the AGM.The Secretary announced the name of the Project Consultant they had pre-selected but the proposal for painting or decision on a Project Consultant was never disclosed in any General Body before this AGM.

2)The Secretary proposed a budget of Rs 70 lac for painting which was opposed by a couple of members with legitimate reasons but he eventually passed the resolution.The draft minutes did not capture any concerns by members and showed the resolution carried unanimously.

3)The AGM was chaired by the Chairman of the Managing Committee and all through, his wife was also present and participating in the AGM.The Chairman owns a single flat in the society and so,both original and associate members can’t be present in an AGM.

4)Not only this,both Chairman and his wife’s name appear in minutes circulated to members.

5)Even before the draft minutes were circulated to the members,that is just one week after the AGM,they started charging extra painting charges to the maintenance bill of members.By now,they have collected extra charges for over 6 months.

6)The Managing Committee constituted a sub-committee to oversee the selection of contractor but the decision to appoint a sub-committee was never proposed in any General Body meeting.

7)The sub-committee & managing committee decided among themselves the structural auditor and the contractor for carrying out the painting cum repair work.

8)The tenders for contractor were never opened in any General Body meeting,but were unilaterally decided by the committee.

9)Same goes for the structural auditor.Nevertheless,neither the name of the chosen structural auditor nor the results of the structural audit have ever been circulated to the members of the society.

10) Similarly, nothing, not even the name of the selected contractor has ever been circulated to the society members.

Now, the painting cum repair work has commenced full swing over the last 15 days.Walls are being hammered and plasters being peeled off in the buildings.

Sir,in view of the above issues,could you please suggest what can be done to~

A)Stop the painting cum repair work immediately to avoid further nuisance.

B)Recover the costs incurred on the society due to the arbitrary action of the committee

1. C) Can the committee be disqualified for this action

D)Are the committee members individually and personally responsible for any liabilities arising out of this action.

Sir, please guide which would be the fastest way to get this work stopped and how?Does this case fall within the purview of Consumer Court and can an interim injunction to stop work be obtained from Consumer court?

I C Naik

Dear Shonali

You reside in a CHS in Navi Mumbai, Maharashtra having 133 members and 10 Managing Committee members. You apprehend serious irregularities committed by the Committee, in undertaking a painting cum repair work which commenced about 15 days ago. You have a strong conviction that the work must be halted as it has not been commenced by adhering to mandatory procedures to start the work.

In other words the Committee has acted beyond its authority under bye-laws. Facts leading to this deadly conclusion are serious lapses as narrated below.

1. The agenda for AGM in July 2016, did mention the need for painting work which was briefly touched upon in the meetin. The Secretary proposed a budget of Rs 70 lacs without placing any Project details except the name of the Project Consultant. Ignoring the objections of certain members to the proposal and procedure, resolution was taken as passed unanimously.
2. After a week of AGM and before the draft minutes were circulated, the Society started charging painting charges in the maintenance bill which was not even mentioned in the AGM.
3. The Managing Committee constituted a sub-committee to oversee the Project implementation.
4. The tenders for contract were opened by the Committee and approved by it.
5. Members were not briefed on the structural audit – Appointment and it’s Report/recommendations.
6. Name of the selected contractor has not been disclosed.

Shonali wonders if

1. A)  Work can be halted immediately.
2. B)    Make the Committee members (jointly and severally ) bear the wasteful expenditure incurred by decisions taken by them without adhering to requirements laid down under bye-laws.
3. C)  The committee can be dismissed?

She wonders what could be the fastest way to get this work stopped and how? Does this case fall within the purview of Consumer Court and can an interim injunction to stop work be obtained from Consumer court?

The Committee has taken up the project by passing approval of the members in general body meeting which is obligatory and is not within the power of the Committee to incur such high outlay without the prior approval of the members of Society in general body meeting . It is a deficiency in service to members by the Committee on behalf of the Society and is a fit case to file a complaint against the Society, in the District Consumer Court against the Society, the Chairman, the Hon. Secretary  and the Committee making all the four as opposite parties to the Complaint.

After giving facts as I have summarized the Prayer should be to order an interim stay to the work, commenced by the Opposite Parties the four of them in breach of bye-laws which they are bound to adhere to. The action of the opposite parties smacks of foul play to the detriment of the members of the Society  and it deserves to be halted forthwith.  The second prayer shall be to declare the Committee members liable to bear the loss of unauthorized work on behalf of the members without taking their consent.

Simultaneously file a dispute between members and the Committee  under  Section 91 of the MCS Act 1960 .

In both the matters not mandatory to have an advocate Authorized Officer a few members can themselves go for it on facts.