Co-op. society
Pramod Harkisondas Divecha
(Querist) 27 January 2014
This query is : Resolved
Sirs,
I need your urgent advice.
I have acted as advisor/consultant to a co-op. society in certain matters.
1. The Hon. Secretary of the society had invited me/us to advise/guide them in various matters.
2. The said Hon. Secretary had accepted to pay fees as quoted by us, on the quotation itself, by writing “ACCEPTED” and signing.
3. The issues were discussed in a meeting with our representative, wherein majority committee members had participated and payment was also approved.
4. Subsequently, before the payment was made, the Hon. Secretary resigned due to internal squabbles and a new Hon. Secretary was elected and appointed.
5. The new Hon. Secretary refuses to make payment of our fees on the ground that the Old Secretary/committee had not passed any resolution for appointing us as advisors and therefore, no payment is due to us/ he will not make any payment. It may be stated that all evidences including the acceptance by the old secretary have been furnished to the new secretary, but still payment is being refused.
Against the above backdrop please advise:
a. Whether the stand taken by the new secretary is legal and whether he can deny payment to us when we have documentary evidence of acceptance to pay from the old secretary.
b. If the old secretary/committee has neglected to pass suitable resolution, does it affect my right as an outsider and as a creditor of the society? (I have no other connections with the society).
c. What course of action, other than Civil Recovery Suit is available to me? (Would like to avoid civil action due to sheer delays)
d. Is it possible for me to take action against the society under section 91 of MCS Act, being a CREDITOR of the society?
I shall appreciate your urgent advise.
Annonymus
Isaac Gabriel
(Expert) 27 January 2014
Issue notice and file a case witht the registrar of Cooperatives.Change of personnel cannot be reason to deny payment for the services rendered.
T. Kalaiselvan, Advocate
(Expert) 28 January 2014
Exactly correct. I endorse the views expressed by expert Mr. Isaac Gabriel on the subject issue.
Advocate. Arunagiri
(Expert) 28 January 2014
If your appointment is irregular and not followed the bye laws of the society, the society can refuse to pay the salary.
At the same time you can request the new secretary, to ratify your appointment, by passing a necessary resolution.
You can send a legal notice, even if your appointment was regularized by passing the board resolution, you have worked for the company, so you are entitled for the salary.
Come back to us on receiving the reply.
Rajendra K Goyal
(Expert) 28 January 2014
a) Stand taken is illegal and the new Hon. Secretary can not refuse the payment.
b) You have been entrusted the work in official capacity, you are not responsible whether internal procedure was adopted or not.
c) & d) Agree with the experts and endorse their advise.
Guest
(Expert) 28 January 2014
As a service provider, you are not responsible for any irregularity, if any, committed by the management of the society. Your payment for your service to the society cannot be denied. If the previous secretary failed to get the resolution passed, the new management committee should get your appointment regularised by passing of appropriate resolution, if due as per byelaws of the society. If the present management finds any irregularity on the part of the former secretary, the management and the AGM of the society are free to take any action against him, but cannot penalise you, as the service provider for his irregularity.
You may first issue notice to the secretary and on his failing to respond positively, you may lodge a case for arbitration.
Dr J C Vashista
(Expert) 30 January 2014
I agree with Sh. PS Dhingra, your payment for services provided to the society will have to be paid, issue notice and claim
R.V.RAO
(Expert) 30 January 2014
if the society is registered with registrar of societies, you may as well meet up and lodge written complaint and ask for your legal dues.registrar will call for details and will act on your written complaint and do justice.
