Disputes in cooperative housing societies usually do not happen because rules are missing, but because they are interpreted selectively or ignored altogether. Arguments in the cooperative housing society (CHS/the Society) often break out over maintenance charges, how meetings and decisions are recorded and the lack of transparency in how managing committees make decisions.
This week’s questions highlight two such recurring problem areas. One concerns the financial treatment of an amalgamated flat that has, from inception, been recognised as a single unit by the builder, the municipal authorities and the Society itself. The other deals with the statutory obligation of managing committees to accurately record proceedings of general body meetings (GBMs) and the remedies available to members when such duties are not performed.
Maintenance Liability for an Amalgamated Flat with a Single Share Certificate
Question: I purchased two amalgamated flats about two and a half years ago in a CHS in Mumbai. The seller had executed a single agreement for both flats with the builder in 2004 and had one share certificate and one maintenance bill from the Society which I have continued in the same manner. In the property tax records of the BrihanMumbai Municipal Corporation (BMC) also, the flat is shown as amalgamated. Now, the Society is asking me to get two share certificates and pay two separate maintenance bills instead of one. Am I required to pay two maintenance bills? Please guide me.
Answer: Since your flat has been an amalgamated flat from the beginning, you are rightly receiving only one property tax bill from the BMC. From your seller, who was the original buyer from the builder, the premises have always been treated as one flat and, therefore, the BMC has issued a single property tax bill. Your seller also had only one share certificate for the flat.
In my opinion, such an amalgamated flat would have only one kitchen. If there are two kitchens due to the original layout of two flats, one kitchen should be closed and used as a store room. The flat may have two or more bedrooms and bathrooms which does not make it two separate flats.
With these features, the Society cannot ask you to pay two maintenance bills corresponding to two flats. If the Society insists on charging two maintenance bills, you should, with all the above proofs, make a complaint against your Society to the deputy registrar of cooperative societies (DR-CS) of your area under bye-law no. 174(A)(xxii).
Since the Society has so far treated the premises as one flat, based on the builder’s approved plan, it cannot, on its own, treat it as two flats for the same flat-owner.
Failure to Record AGM Discussions and Remedies Available to Members
Question: During the AGM (annual general meeting) held in September, a point was raised regarding the open consumption of alcohol by several members, including some members of the managing committee, on the Society's premises during the Holi festival. The discussion continued for some time. Another member added comments, and so did the honorary chairman. However, no resolution was passed.
In December, the draft minutes of the AGM were circulated, but the managing committee did not record this discussion. I sent emails requesting them to include it in the final minutes. After multiple reminders, they replied stating that they could not include the topic. An extract of their reply is as follows:
“With regards to the point raised by you, with the permission of the chair, on alcohol consumption during Holi celebrations in the Society premises by some members. Unfortunately, the majority of the general body members had dispersed; hence, the matter was not discussed in detail. Since no resolution was taken, the managing committee did not see the need to add it to the AGM minutes.”
Drinking in public often creates a nuisance and is punishable by law. Despite my reminders and follow-ups, the office-bearers failed to correct the minutes, even though my observations were submitted immediately upon receipt of the draft AGM minutes, as provided under bye-law no. 107. The office-bearers did not record this issue since some managing committee members and spouses of a few office-bearers were involved in the open consumption of alcohol.
Should a complaint be filed with the registrar or the cooperative court for not including the above matter in the minutes? What is the procedure for filing a case in the cooperative court under bye-law no. 174(B)? Please explain the steps so that the procedure is clear. Can this be handled on my own, or do I need to engage a lawyer?
Answer: You can take up this matter before the cooperative court under Bye-law No. 174(B)(i), which covers failure of the Society to perform its statutory duties, including proper recording and circulation of minutes of the AGM.
The registrar is not the appropriate authority for correction or inclusion of discussions in AGM minutes. Matters relating to omissions, improper recording or refusal to record proceedings of a general body meeting fall within the jurisdiction of the cooperative court.
Procedure To File a Complaint in the Cooperative Court:
- Prepare a written complaint stating the facts, specifically mentioning that the discussion raised during the AGM was not recorded in the minutes, despite timely written objections under bye-law no. 107.
- Attach supporting documents such as a copy of the draft AGM minutes, your emails/letters requesting correction and the Society’s written reply refusing to include the discussion.
- Before filing the complaint, send a copy of the complaint to the Society, either by hand delivery (with acknowledgement) or by registered AD post.
- File the complaint before the cooperative court having jurisdiction over your Society.
Since the issue relates to procedural lapses and documentary evidence is available, you do not require the services of an advocate. The staff at the cooperative court will guide you on the format and filing process. You may also refer to publicly available guidance online on filing complaints in the cooperative court.
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, 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.)
