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Levy of charges by coop housing society

(Querist) 14 January 2014 This query is : Resolved 
I am plot tenant member of cooperative housing society. One Mr.X (another member of the same society trough different property) initiated criminal as well civil proceedings against me as well as the committee members in relation to my plot. I defended the civil as well criminal process against me of my own and
Society defended the criminal as well civil process against it BUT debited my account by Rs.80000 as legal charges. Can society do this? If "no" than what is the line of action should be from my part -- shall I complain to Dy registrar(under which section ) or any other remedy. Please advice.
Dr J C Vashista (Expert) 15 January 2014
Mr. vijay,
Cooperative societies are governed by State Cooperative Socities Act, which differ.
You cannot be singled out for the litigation expenses incurred by MC
Rajendra K Goyal (Expert) 15 January 2014
Action of Society is illegal, case is against society and it should defend. Send legal notice to society. Contact a local lawyer.
Guest (Expert) 15 January 2014
well advised by the experts
Vijay (Querist) 15 January 2014
Which is the provision / section (or rule) of Maharashtra Cooperative Societies Act under which I can challenge the illegal action of the society. ?
ajay sethi (Expert) 15 January 2014
was any resolution passed in MC meeting regarding legal expenses? society cannot saddle you with legal expenses bill . members of managing committee were also parties to suit . society has to bear expenses . refuse to pay . move cooperative court against society
V R SHROFF (Expert) 15 January 2014
Underbye-laws no. 69, Legal charges included as service charges(vii)
Under bye laws No. 70, all service charges are included under sub sec ( xi) That Retainer fees, legal charges, stationery enquiry fees etc.
This expenses are to be divided equally by all members, as Legal expenses on behalf of Society.
So Society cannot charge a single member what they spend on Legal expenses. registrar cannot interfere AGM resolution.

If they do so, even by passing resolution in AGM, you can lodge complaint with Co-operative court, as regular suit.
Vijay (Querist) 15 January 2014
Thankyou Mr.Shroff. Dy registrar does not have power to decide the issue, I will have to move the cooperative court. Thanks once again.
ajay sethi (Expert) 15 January 2014
you have to move cooperative court as it is dispute between you and society regarding maintenance bill
T. Kalaiselvan, Advocate (Expert) 15 January 2014
Yes as far as the legal expenses is concerned, if the society is still insisting the legal expenses to be borne by you, you may approach he Cooperative court for relief.Mr. Shroff has advised the provisions properly.
Hemant Agarwal (Expert) 05 December 2014
1. Legal Charges CANNOT be recovered from any member, by a Society, without a proper judicial order. Do not pay, since the Registrar or the Coop. Court, has no jurisdiction to order you to pay for such legal charges.

2. Legal Charges are to be shared by all the members on the basis of "equality & mutuality".

Keep Smiling .... Hemant Agarwal
READ ARTICLES ON: http://hemantagarwal21.blogspot.in/?view=sidebar


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