Ensuring Fair Practices in Meetings and Property Sales
Cooperative housing society (CHS/Society) management issues are a recurring challenge for members, often stemming from a lack of clarity in implementing bylaws or ensuring fair practices. This week, I will address pressing concerns from Society members who face irregularities in routine meetings, discrepancies in documentation and challenges with parking allocation.
In many Societies, improper adherence to bye-laws leads to disputes, as seen in the case of a managing committee failing to follow protocol for meetings. Another query highlights the complications arising from name changes on legal documents—a common, yet, critical issue for property-owners. Additionally, questions about parking space allotment reveal the ongoing tussle between members and developers over limited resources.
The answers here aim to clarify procedures and offer actionable steps, ensuring members are better equipped to navigate these complexities.
Managing Committee Fails To Follow Rules for Routine Meetings
Question: Our Society is located in central Mumbai. The managing committee meetings are held irregularly—sometimes monthly and sometimes once in three months. During the meetings, all members are made to sign a blank attendance sheet and the agenda is discussed with the chairman, who has the final say, as the secretary is said to have no authority. No official notes are recorded, so members cannot sign off on what was discussed.
Since April 2023, the managing committee has not circulated the minutes of the meetings, claiming they may need to alter them later as per their decisions. The committee also argues that signatures of non-office-bearing members are not required to finalise the minutes. Are these practices correct? Can you explain the proper protocol for committee meetings?
Answer: As per CHS bye-laws, the managing committee should meet as often as necessary but at least once in a month.
The secretary of the Society needs to give three day’s notice of meetings of the committee to all the members of the committee, stating the date, time and place of the meeting and the business to be transacted, in consultation with the chairman of the Society. Where the secretary of the Society fails to issue such notice and agenda of any meeting of the committee, the chairman of the Society should issue it.
If the chairman and the secretary of the Society fail to issue a notice and agenda of any meeting of the committee, the concerned (district) housing federation, of which the Society is affiliated, may call such a meeting on receipt of such information and request.
The secretary of the Society needs to attend every meeting of the committee and record its minutes and place the same for confirmation before the next meeting of the committee, after the minutes are signed by the secretary of the Society and the chairman of the meeting in the absence of the secretary, the chairman of the Society shall make alternate arrangement for recording minutes of the meeting.
Sale Agreement Bears Maiden Name, while Share Certificate Has the Married Name
Question: I purchased a flat in 1993 in my maiden name. Later, I requested the Society to update my name on the share certificate to reflect my name after marriage. Now, while trying to sell the flat, the original purchase agreement is in my maiden name, but the share certificate has my married name. How can I resolve this issue?
Answer: You can address this by including a recital clause in the proposed sale agreement (the one that you would be forming with the prospective buyer) that explains the name change. Reference your marriage certificate and the Gazette notification in the agreement and attach these documents as supporting evidence. This should adequately resolve the issue.
Society Changing Maintenance Calculation Method
Question: Our Society has been charging maintenance fees based on area in square foot for the past five years. Now, the Society is planning to change the calculation method, making service charges equal for all flats. This would reduce the maintenance costs for 3BHK flat-owners. Should the Society pay the difference for the past years to 3BHK owners?
Answer: The location of your Society, the applicable state laws and the specific model bye-laws in effect from a particular date were not disclosed, which are crucial for an accurate opinion.
If the bye-laws mandate equal service charges for all flats, you should formally approach the Society’s secretary, requesting a refund of the difference with interest or an adjustment in future bills. If the Secretary does not respond or denies your request, you can escalate the matter to the concerned deputy registrar or cooperative societies for resolution.
In Maharashtra, CHS monthly charges are calculated using service charges which are equal for all flat members and maintenance charges (including repairs, maintenance, water charges, insurance, sinking fund and taxes) based on the actual area of the flat.
You can approach Moneylife Foundation with the related papers for further guidance if necessary. Please call 022-35131664 (022) 35036925 during business hours for an appointment.
NOTE
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, a 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.)
