CHS PROBLEMS SOLUTIONS

Life in a cooperative housing society (CHS/the Society) is governed as much by procedures and records as by neighbourly understanding. Many disputes arise not from major conflicts but from uncertainty over how CHS, especially the managing committee, should deal with routine matters such as the transfer of membership, the allocation of common facilities and the application of financial policies.

 

This week, I will address queries on delays in processing the transmission of shares after the death of a member, the allotment of an additional parking space when vacant slots are available, and the eligibility criteria for maintenance-charge discounts offered by some societies. In each case, transparency, adherence to approved policies and timely communication by the managing committee can go a long way towards preventing avoidable disagreements.

 

Society Delaying Transmission of Shares after a Member's Death

 

Question: My wife passed away about seven months ago. She was a member of our CHS and was residing there with me. She had nominated me (husband) for 50%, my daughter for 25%, and my son for 25%.

After her death, a joint application was made along with the documents required to the best of our knowledge. However, for one reason or another, the transfer has not taken place. The Society subsequently asked us to submit the application in its prescribed format and duly acknowledged by the manager. The following documents were submitted:

 

There has been no feedback or progress on the matter. The management cites the lockdown as the reason for not processing the papers, whereas other Society activities are being carried out without delay.

 

Please advise how I can compel the management committee to process the transfer at the earliest. I am also a senior citizen.

 

Answer: The set of documents submitted by you appears to be broadly in order for processing the transmission of shares and membership after the death of a member. Since the Society has already acknowledged receipt of your application, it should examine the documents and communicate any deficiency, if any, within a reasonable period.

 

You may write a letter to the secretary of the Society requesting the status of your application and asking the Society to complete the transmission process or inform you in writing if any further documents are required.

 

If the Society fails to respond or does not process your application, despite repeated follow-up, you may submit a written complaint to the deputy registrar (DR) of cooperative societies, enclosing copies of all documents submitted to the Society and proof of their receipt.

 

In your complaint, state that the transmission application has remained pending for several months without any written communication from the CHS. Request the deputy registrar (DR) to intervene and direct the Society to consider and dispose of your application in accordance with the Maharashtra Cooperative Societies Act and the applicable bye-laws.

 

If the Society still does not act or if the dispute remains unresolved, you may pursue such further remedies as may be available under the Maharashtra Cooperative Societies Act.

 

Additional Parking Space Where Vacant Slots Exist

 

Question: Please provide guidance regarding the allotment of a second car parking space. There are vacant parking slots available in our Society. When we requested a second parking space, stating that vacant slots are available, the Society threatened to impose heavy fines. Kindly advise.

 

Answer: If parking spaces remain available after accommodating eligible members, the Society may allot an additional parking space on a year-to-year basis, subject to its bye-laws and parking policy.

 

If the Society proposes to levy additional charges or impose a fine for the allotment of a second parking space, you may ask for the basis of such charges and the resolution under which they have been approved.

 

If you believe the charges are improper or contrary to the bye-laws, you may submit a written complaint to the DR of cooperative societies and seek appropriate guidance regarding the remedy available to you.

 

Eligibility for Maintenance Discount When Interest Remains Outstanding

 

Question: Nowadays, many housing societies offer a discount on advance payment of the next year's 12 months' maintenance charges. This facility is generally available only to members who have cleared all previous maintenance dues and paid the next 12 months' maintenance charges in advance.

 

In my case, the Society has refused to grant the discount on the grounds that interest or penalty charges are still payable on maintenance dues that have already been cleared.

 

In my opinion, any outstanding interest or penalty remains recoverable by the Society and cannot be treated as a bad debt. Since the Society will be using my advance payment and I will be foregoing interest on that amount, can the Society refuse to grant the discount? Kindly guide me on this issue.

 

Answer: Under the Model Bye-laws, a cooperative housing society—CHS may levy interest on overdue dues in accordance with the applicable provisions and resolutions of the Society.

 

There is no specific provision in the Maharashtra Cooperative Societies Act or the model bye-laws that gives a member a legal right to receive a discount for making an advance payment of maintenance charges. Such a concession, if offered by a Society, is generally governed by the terms and conditions approved by the CHS members in the general body meeting (GBM).

 

Therefore, you should obtain a copy of the resolution or policy that introduced the discount scheme. If the scheme provides that all dues, including interest and penalty charges, must be cleared before a member becomes eligible for the discount, the Society may refuse the concession until those dues are paid.

 

However, if no such condition exists in the approved scheme, you may seek clarification from the managing committee and request that the discount be granted in accordance with the policy applicable to all members.

 

  We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question

 

Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever. 

 

(Shirish Shanbhag has an MSc in Organic Chemistry, Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)