CHS PROBLEMS SOLUTIONS

Running a cooperative housing society (CHS/the Society) involves more than following established practices; it also requires keeping pace with changes in the law and understanding where the Society’s administrative powers begin and end. Questions about the composition of a managing committee, the validity of its decisions and the documents required of members often arise precisely because older bye-laws, current statutory provisions and day-to-day society procedures do not always fit neatly together.

 

This week’s questions highlight two such situations. One concerns the permissible strength of a managing committee and the remedies available when members believe its composition does not comply with the applicable rules. The other concerns the position of a nominee seeking transfer of a deceased member’s flat, and the important distinction between being recognised by the society as a nominee and acquiring ultimate ownership under succession law.

 

 

 

Answer: The number of managing committee (MC) members of a CHS is governed not only by the model bye-laws, but also by the provisions of the Maharashtra Cooperative Societies (MCS) Act, 1960, and the orders issued by the state government from time to time.

 

Under section 154B-19 of the MCS Act, 1960, the MC of a housing society shall consist of such a number of members as may be decided by the state government by notification or special order. Therefore, model bye-law no114 should be read along with the current statutory provisions and government orders applicable to housing societies.

 

For example, the government resolution dated 28 February 2024 provides that where a CHS has fewer than 50 members, the strength of the MC shall be seven members, with a quorum of three members. For Societies with 50 or more members, the applicable committee strength must be determined with reference to the relevant statutory provisions, government orders and the Society's registered bye-laws.

 

Therefore, if more members have been elected or appointed on the MC than the number legally applicable to your Society, you can make a written complaint to the deputy registrar (DR) of cooperative societies of your area, referring to the applicable provisions of the MCS Act, government orders and the registered bye-laws of your Society.

 

When you make a complaint to the DR, you have to be more persuasive in your complaint and clearly state the number of members in the Society, the number of MC members elected or appointed, and the provision under which you believe the committee strength is not in order.

 

If you do not receive a reply within a reasonable period, you can file a right to information (RTI) application with the concerned public information officer (PIO), enclosing a copy of your complaint to the DR and asking the PIO to provide information regarding the action taken on your complaint. The RTI application is for obtaining information about the action taken by the concerned officer; it is not, by itself, an appeal or escalation against the DR.

 

If the information received under RTI shows that no action has been taken on your complaint, you can use that information while making a further representation to the appropriate higher authority, such as the district deputy registrar or other competent senior officer, requesting that the matter be examined.

 

If the issue relates specifically to the conduct or validity of an election to the MC, you may also approach the State Cooperative Election Authority, Maharashtra State, Pune, in accordance with its jurisdiction and the applicable election rules. The complaint should clearly distinguish between an issue concerning the strength of the MC and an issue concerning the conduct or validity of the election.

 

You should, therefore, first verify the number of members in your Society, the number of MC members elected or appointed, the Society’s registered bye-laws, and the latest government orders applicable to the Society before making the complaint.

 

 

 

Answer: The position regarding transfer of a flat after the death of a member has to be considered under the updated provisions of the Maharashtra Cooperative Societies Act, 1960, particularly Section 154B-13, read with the applicable bye-laws of the Society. Therefore, the following procedure should be followed after checking the Society’s currently applicable registered bye-laws.

 

Since you are the nominee of the deceased member, the fact that you are not a blood relative of the deceased does not, by itself, invalidate the nomination. However, it is important to understand that a nomination does not, by itself, make you the ultimate owner of the flat. The Society can transfer the deceased member’s share, right, title and interest to the nominee and admit the nominee as a member in accordance with the law, but the nominee holds the interest subject to the rights of the person who may ultimately be entitled to the property under succession law.

 

You should submit the documents to the Society in a file. Take photocopies of all documents and keep a separate file for your records. After submitting the documents, obtain an acknowledgement, with the date and the Society’s seal, on a copy of your covering letter. The following documents should generally be submitted, subject to the Society’s current bye-laws and the facts of the particular case:

 

The current law should be kept in mind here. Under section 154B-13 of the MCS Act, the Society deals with the deceased member’s share, right, title and interest on the basis of a valid nomination and the other succession documents recognised by the law. Therefore, the Society should not insist that a nominee is disqualified merely because the nominee is not a relative of the deceased.

 

At the same time, the nominee should not treat the transfer of the share certificate into his or her name as conclusive proof of ownership of the flat. The nominee’s position is subject to the rights of the legal heirs or other persons entitled to the deceased member's estate under the applicable succession law.

 

If the deceased member’s legal heirs subsequently produce a Will, succession certificate, probate, letters of administration, legal-heirship documentation or another legally recognised document establishing their entitlement, the Society may have to deal with the property in accordance with that entitlement and the applicable law.

 

Therefore, if the Society asks you to produce letters of administration, probate, a succession certificate or other succession documents, ask the Society to give you the requirement in writing, stating the provision of the Act, Rules or the Society’s applicable bye-laws under which the particular document is being demanded. Whether such a document is required will depend upon the circumstances of the deceased member’s estate, including whether there is a Will and whether any legal heirs have made a claim.

 

After submitting your application, obtain an acknowledgement from the Society and follow up in writing regarding the progress of the transfer. Keep copies of all correspondence and documents submitted to the Society.

 

Once the Society admits you as the nominee/member in accordance with the current law, you should also understand that this does not by itself settle the ultimate succession to the flat. If there is no dispute and the person entitled under the succession law is also the nominee, the position may be straightforward. If the nominee and the ultimate legal heir or beneficiary are different persons, the question of final ownership must be determined in accordance with applicable succession law and the relevant documents.

 

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