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Veerendra   25 February 2025

Is a joint sgbm of two legally different adjacent societies legally valid ?

Dear all eminent  lawyers ,
 
Location :- Andheri , Mumbai 
 
Brief history :- Our society decided to go in for joint redevelopment with the adjacent society.
Two JOINT SGBM's were held & some resolutions were passed. All of them were pertaining to redevelopment.
 
However, till date no formal & legal merger of societies has taken place.
 
On the d​ais  the secret​ary  & the â€‹chairman of both the societies sat.​ The members of both societies sat in two separate groups.
 
Now my queries :
 
[1] Is the JOINT SGBM legally valid ?
 
[2] Are the resolutions passed in the joint SGBM legally valid​ ?
 
I​f  not , what legal options are there to challenge these resolutions​ ?
 
Hope to see many responses & many thanks in advance for the â€‹same.
 
Regards,
​
Veerendra Darakh
 
 
 
 
 
 
 
 
 
 
 


 5 Replies

T. Kalaiselvan, Advocate (Advocate)     25 February 2025

To amalgamate two housing societies in Mumbai for redevelopment purposes, both societies must hold separate Special General Body Meetings (SGBMs) to pass resolutions approving the amalgamation, followed by submitting a joint application to the Registrar of Cooperative Societies with necessary documents, and finally obtaining their approval after addressing any objections raised by members or creditors; this process requires a two-thirds majority vote from members of each society present and voting at the SGBM. 

Both societies should initiate discussions regarding the potential benefits of amalgamation for redevelopment. 

Each society must call a Special General Body Meeting to present the amalgamation proposal and seek a two-thirds majority vote from members present and voting in favor of proceeding.

Provide detailed information to members regarding the proposed amalgamation, including the terms of the merger, benefits to members, and potential risks. 

Submit a joint application to the Registrar of Cooperative Societies.

The Registrar will issue a notice to all members and creditors of both societies, giving them an opportunity to raise any objections. 

 If objections are raised, the Registrar may conduct a hearing to address concerns and resolve disputes. 

Ensure compliance with the Maharashtra Cooperative Societies Act and relevant regulations regarding amalgamation.

1 Like

R.K Nanda (Advocate)     25 February 2025

Contact local lawyer  for proper legal advise as your question is very complicated .

1 Like

kavksatyanarayana (subregistrar/supdt.(retired))     25 February 2025

I agree with the advice of Mr.T.Kalaiselval sir.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     26 February 2025

The legality of the joint SGBM (Special General Body Meeting) and the resolutions passed depends on the specific circumstances and the governing laws of Maharashtra, particularly the Maharashtra Cooperative Societies Act, 1960. Legality of Joint SGBM:

The joint SGBM may be considered valid if: - It was convened and conducted in accordance with the bye-laws of both societies. -

The meeting was properly noticed, and the agenda was circulated to all members. - The quorum requirements were met, and the decisions were taken with the requisite majority.

However, since there is no formal and legal merger of the two societies, the joint SGBM may not be fully recognized as a legitimate decision-making body.

*Legality of Resolutions Passed:* The resolutions passed in the joint SGBM may be considered valid if they: - Are in line with the objectives and purposes of both societies. -

 Do not violate any provisions of the Maharashtra Cooperative Societies Act, 1960, or the bye-laws of the societies. - Were passed with the requisite majority and quorum. However, if the resolutions are challenged, the courts may examine the legitimacy of the joint SGBM and the decision-making process.

*Challenging the Resolutions:* If the resolutions are challenged, the following legal options may be available: - Filing a writ petition in the High Court of Bombay, challenging the validity of the joint SGBM and the resolutions passed. - Filing a complaint with the Registrar of Cooperative Societies, Maharashtra, alleging irregularities in the conduct of the joint SGBM. - Seeking an injunction from the civil court to restrain the implementation of the resolutions. It is essential to consult with a lawyer specializing in cooperative society laws to determine the best course of action and to ensure that the rights of the societies and their members are protected.

Dr. J C Vashista (Advocate )     26 February 2025

Both the societies will have to adopt / pass their own resolution separatly untill amalgmation process is complete.


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