What if CHS committee members are fed up?

Murli Pisharody

What to do when in a Co-operative housing society all the Committee Members are fed up and do not want to continue any more, on account of the attitude of ever demanding ungrateful members who are un-willing to take up management responsibility from the outgoing Committee ?

I C Naik

1. Assuming this is the case of a C H S in Mumbai, at the outset please note that as per the latest directive reportedly issued by the Cooperation department of the State of Maharashtra, management Committees of cooperative housing societies whose tenure of 5 years has expired on or before March 31 2013 are debarred from holding elections and such Committees should carry on as care taker Committees and avoid taking policy decisions otherwise face legal actions.

2. The State expects to hold elections in such Societies by December 31 2013. Such Societies are required to communicate their status to the Maharashtra State Cooperative Election Authority (MSCEA). Since no such authority has been constituted, Dy Registrar of the concerned ward may be intimated on a safer side.

3. In the meanwhile committees of such societies (since they have so far served the society voluntarily and with good intentions) should start working on the mindset of the “ever demanding ungrateful members” The Committee should put up a notice on their notice board.

4. Suggested draft is as under.
To the Members of ……….. cooperative housing society Ltd.
As you may be aware, the 5 year tenure of the present Committee expired on 31st March 2013. Despite confusion over exact legal position, all efforts to hand over the management to new committee failed since no member was willing to take any responsibility of management.

1. Parliament has passed the Constitution (97th Amendment) Act 2011 directing the States/ Union Territories as to how to deregulate the Cooperative Sector so as to enable members of cooperatives to manage their society themselves in autonomous/democratic/professional manner.

2. There are several important constitutional mandates imbibed in 97th CAA, one very important and immediately relevant mandate is that there shall be an Apex/State Cooperative Elections Authority (S C E A) to conduct elections and complete the process in every cooperative society well ahead of completion of the 5 year tenure of the managing committee so that new management committee takes charge immediately upon expiry of the tenure of the outgoing managing committee.

3. In February this year, His Excellency the Governor of the State has promulgated the Maharashtra Cooperative (Amendment) Ordinance 2013 incorporating these Constitutional Mandates in the M. C. S. Act 1960.

4. The Legislative Assembly of the State has before its current session a bill to pass the M. C. S. (Amendment) Act 2013 to ratify the Ordinance and is expected to be in place any moment.

5. Nearly after 16 months of enactment of 97th CAA our Government is still engaged in the process of constituting S E C A i.e the Maharashtra State Cooperative Election Authority (MSCEA).
In the meanwhile, the confusion has ended at least in the matter of management committees with the recent directive of the State Cooperation Department that the present Committees in all such societies like ours shall continue functioning as care taker committees till the new Committee is elected hopefully before the end of the year by the MSCEA.

Members would recall how difficult it was to constitute a new Committee when the tenure of the current committee ended. The members were finding it difficult to spare time for such thankless job. Somehow some members so far willy-nilly came forward but now it seems in the wake of ever rising expectations of the demanding members. Which are difficult to satisfy, none of the present Committee members is willing to continue even for a day but for such compulsions.

In this grave situation the Committee decided to apprise the members of the likely consequences, in the event of no member filing nominations when elections are announced by the MSCEA expected any time.

1. The Dy. Registrar may invoke his power to nominate
• A committee, consisting of not more than three members of the society; or
• (If no member is willing to cooperate as above) one or more authorised officers of the Department to manage the affairs of the society till a new committee enters upon office.

2. The committee or the authorized officer so appointed shall, subject to the control of the Registrar and to such instructions as he may, from time to time, give, have power to discharge all or any of the functions of the committee or of any officer of the society and take all such action as may be required to be taken in the interests of the society.

3. The Committee or the authorized officer so appointed shall hold office for a period of six months from the date of assuming the management of the society and shall make necessary arrangements for constituting anew committee within the said period and for enabling the new to enter upon office.

4. It has been categorically provided that, in no circumstances the term of office of the committee or authorised officer shall exceed six months from the date of their holding office.”;

5. Experience of the Registrar’s man managing a cooperative housing society is not new for most of our members.
A word of Caution:

1. The M. C. S. Act 1960 is silent about “what If” within the period of six months also no member comes forward to join the managing committee.

2. Probably we may have to invoke a provision in law that “ A society may, with the previous approval of the Registrar, by resolution passed by two-thirds majority of the members present and voting at a special general meeting held for the purpose, decide to amalgamate itself with another society”

3. If the members’ indifference is so high that we may have to look forward to the Registrar invoking his power in the interest of the co-operative movement or for the purpose of securing the proper management of our society, to decide that our society merges with other society. This he can do after consulting the District Housing Federation.

4. We can guess the Dy. Registrar may explore the possibility of merging our society with any other society where members appreciate the cooperative principles and are willing to not merely protect their interest but keen to improve the quality of social life in their society. It is possible that there may be a Society having members wedded to cooperative principles and having a keen desire to improve quality of social life selflessly managing their housing society.

The Committee hopes that members will give careful thought to the above and rise to occasion in an appropriate manner in their own interest.