Are you a co-operative housing society in Maharashtra? If so the position is like this. On the question of appointment of a legal advisor or even meeting legal expenses the Act, the Rules and the Model byelaws are silent. As regards expenditure on repairs there is a Repairs Fund.. The Managing committee can approve expenditure on repairs up to Rs. 1 lakh at a time. For higher expenditures approval of the General Body is necessary. If the Society has to fight a case there is no provision of funds under the Model Byelaws. In our Society I created a Legal Fund. Member have to contribute at a fixed rate to the fund. All penalties and penal interest levied on members will be crdited to the Fund. Legal expenditures are met from the fund.
A society has to meet legal expenditures when it becomes necessary. Normally the Societies meet legal expenditures form the funds available with them or even post-facto collect from the members. Whether your Society should commit themselves to legal expenditure to the extent stated by you would depend on the size and finances of the Society and legal cases that your society has to commit itself. Whether the Managing Committee can decide or whether approval of the General Meeting is necessary is also debatable.
You make a complaint to the Registrar or go to the co-operatve court. Let the court decide.
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