Unfortunately I find that members of the Forum show interest in topics related to Section 498A, IPC, the DV Act and other family laws only. Probably only those posts give scope for juicy gossip. Besides Adv. Agarwal there are two more advocates here. I wish they also participate in the discussions.
“The Society Mg. Committee, is duty bound to maintain peace in the Society premises under the powers conferred to it, under bye-law no. 112, 140 & 141”.
There are several Model Byelaws. One is for “Open Plot type” societies and another is for flat type Societies. Though most of the bye-laws are same in both, their numbering is different. Hence it is difficult to identify a byelaw by its number alone. In the “Open Plot Type” society byelaws No. 112 says that Management of the Society is vested in the Managing Committee. Byelaw No.140 deals with powers of the Chairman. Byelaw No.141 lists the functions of the Secretary. In my copy 25 functions are listed. None of them relates to maintaining peace. Of course bye-law No. 175 says whom to approach for redressal of each type of grievance. Probably a later issue of the same by-laws may contain more. I am discussing bye-law No. 175 later.
“If the mg. committee fails to do so, even after receiving a members legal notice, it can be expressly implied that the mg. committee has deliberately failed to perform its mandatory duties, which is termed as "negligence and deficiency in services", under the Consumer Protection Act.”
1. A member of the society is a “Consumer” within the meaning of the Consumer Protection Act and can sue the society for “deficiency in service” or “negligence in service”.
Under Section 2 (d) (ii) of the Act a consumer means any person who –
hires or avails any service for a consideration ..........
As the Managing Committee members do not receive any “consideration”, the members who receive their service are not “consumers” under the Act. Was this presented before the court? If so what was the observation of the court?
2. Management of the Society is equal to providing "SERVICES" to the members. When a member pays money it is for receiving services (ANY & ALL) as defined in the approved & registered bye-laws.
The amounts collected from members are for outwards and services such a Municipal tax, Water tax, common electricity, sweeping and cleaning the common premises, security etc. The Managing Committee collects the amounts from the members and pays to the respective agencies. They do not take any commission or remuneration for themselves. The relationship between such receipts and payments is called “mutuality”. Receipts like admission fee, car parking charges, rent etc have no corresponding mutuality. They will be credited to the reserve fund or repairs fund, The Managing Committee does not appropriate to themselves any amount from such receipts either. If in a particular Society, if any or all Managing Committee members receive remuneration, they may come under the Consumer Protection Act.
3. It is the mandatory duty of the Secretary to provide services, to its members because of the service charges being collected by the CHS MC. The services & reponsibility of the Secretary is to maintain peace & harmony in the CHS premises.
This is already answered
4. By virtue of section 73(1AB) "ALL" the MC members are "individually & severally" responsible for the conduct of the MC (now this includes the secretary). IF the secretary fails to maintain peace and harmony (whatever reason is immaterial), THEN the secretary is guilty in deficiency & negligence in services.
Keep Smiling .... Hemant Agarwal
Please see my comments below.
ALSO REFER TO : "Times of India", Mumbai Edition on April 03, 2009, page no. 04.
(this was posted in the LCI Forum, by me on April 03, 2009)
HOUSING SOCIETY SECRETARY FINED 7000/- FOR POOR SERVICE
Housing society secretary pays for poor service
Consumer Forum Fines Him Rs 7,000
Did the Secretary pay the amount and if so, to whom, the Government Treasury or the Complainant? Did the Secretary pay the entire Rs.7000/- all by himself or was it shared among the Managing Committee members in view of Section 73 (1AB) quoted above?
The district Forum had ordered it. Did the Secretary go higher on appeal?
Mumbai: This landmark order will bring cheers to numerous residents who have been struggling to get a proper response for their grievances from office-bearers and committee members of cooperative housing societies.
The Central Mumbai District Consumer Disputes Redressal Forum has imposed a penalty of Rs 7,000 on the secretary of Chandra Bhuvan Cooperative Housing Society at Bhoiwada for not replying to a letter sent by a resident of the building.
The complainant was a senior citizen, Madhuri Gujar, who had filed an application for the nomination of an associate membership as she was ailing. An associate member has the status of a person with power-of-attorney and has the right to contest elections and even attend annual general meetings of the society. “But the secretary was not accepting my letter on the grounds that there was a case pending at the cooperative court. I then sent the letter through housing federation’s office,’’ the complainant said. But even then, Gujar did not get a reply.
Gujar’s counsel argued that the new amendment in the Maharashtra Cooperative Societies Act Clause 73 (1 AB) put the onus on the secretary of the housing society. Section 73 of the Act states that every member is required to execute an indemnity bond within 15 days of taking charge of the office. According to the bond, the committee members are responsible for all actions taken by the society. The counsel for the secretary, meanwhile, argued that the complainant could not file a personal case against the secretary.
The consumer forum ruled that as the secretary had not replied to the member’s letter, it was deemed a deficiency of service and negligence of duty under the Consumer Protection Act 2005 had taken place.
Consumer activists have welcomed this order. “This is a landmark order. There are many officer-bearers who do not bother to address the grievances of the members of a housing society. This order will be a deterrent for them,’’ said consumer activist Rajan Almichandani said. He said Section 73 (1 AB) of the Act was introduced precisely to rein in such errant office-bearers. “The cooperative registrar’s office is flooded with thousands of complaints from housing society members against office-bearers. The consumer court has proactively taken up the issue and imposed penalty in accordance with the provisions of the Consumer Protection Act,’’ Alimchandani said.
I am neither a lawyer nor Secretary of any Co-operative Housing Society, not even a Committee Member. But if I were the Secretary I would have challenged the order in the higher court. I suspect the counsel for the Society had not presented his arguments properly before the Forum.
THE CASE
Madhuri Gujar of Chandra Bhuvan Cooperative Housing Society at Bhoiwada filed an application for the nomination of an associate membership as she was ailing. An associate member has the status of a person with power-of-attorney and has the right to contest elections and even attend annual general meetings. However, the secretary did not accept her letter on the grounds that there was a case pending at the cooperative court. The letter was then sent through the housing federation’s office, but even then, Gujar did not receive a reply. Gujar’s counsel said the amended clause of Maharashtra Cooperative Societies Act put the onus on the secretary of the housing society. However, the secretary’s counsel said the complainant could not file a personal case against the secretary.
It is not clear what Ms. Madhuri Gujar wanted. Did she, a (primary) member of the Society wanted to get another person as an Associated Member? Or did she want to nominate another person as her nominee to receive her interests in the Society, in the event of her death? If a member has any grievance against the Society, the Housing Federation does not entertain complaints from any individual member. Such a member should aproach the Deputy Registrar of the ward concerned. The Registrar would take up the matter with the chairman or secretary. If necessary he may even call them and the complainant to his office and try to settle the matter. If he finds the Society in the wrong, he would even order them to take corrective action. The order of the Registrar has the weight of the order of a court.
Did Ms. Gujar get what she wanted from the consumer forum? Did she want only a reply from the Secretary, whatever that may be or only to penalize the Secretary? Did the consumer court order the Secretary to admit her Associate Member or to accept her nomination of her heir? If not, of what use to her the order of the Consumer Forum was, except the vengeful satisfaction that the Secretary is poorer by Rs.7000/-. Is a consumer forum for redressal of grievances of the complainants or just for punishing the opposite parties only?
As regards the rights and privileges of an Associate Member Section 24 of the Act says as follows:
24. Nominal, Associate and sympathizer member:
...............but such a member or an Associate Member, may, subject to the provisions of sub-section (8) of section 27, have such privileges and rights and be subject to such liabilities of a member, as may be specified by the bye-laws of the society.
Section 27 (2) gives right to an Associate Member to vote at a meeting if the (primary) member is not present. Subsection (8) denies these rights to nominal and sympathizer members.
An Associate Member shall have no other right such as contesting elections to the Managing Committee, unless the bye-laws specifically provide. Model Bye-laws do not give any right more than that under Section 27(2) to an Associate Member.
Section 14 of the Consumer Protection Act lists the actions that can be taken by the district forum based on its findings. Ordering the Society to admit a person as an Associate Member or to admit a nomination are not covered under any of the steps listed there under. Only the Co-operative hierarchy is equipped to address such complaints.
Under bye-law No.175 (E) complaints such as about nuisance has to be made to the police. Once the Secretary makes a complaint to the police, his responsibility is over. Will the police act? It would depend on who pays them more the complainant or the nuisance creator. If the Police does not Act, can the Consumer Court order the Police to take action? Obviously not. The channel for criminal cases, are different like police, magistrate, criminal court and on.
Instead of quoting newspaper cuttings, it would be better if one analyses the arguments and the judgment on the basis of laws, facts and the depositions before court.
Though all co-operative societies come under the Co-operative Societies Act, a purely residential co-operative housing society is distinct from other types of co-operative societies. A co-operative housing society is exclusively for its own members. A co-operative bank or a co-operative store may serve outsiders also.
I keep smiling