Ownership if case of demise of one of the joint owners

There is no provision in law for transferring 50% ownership in a co-operative society flat. A person is either a member or not a member. If a person is admitted as member, he has to discharge all the liabilities to the society with respect to the flat. If no one is admitted as member, there will be no one to pay the dues to the society and the dues will accumulate as a charge on the flat. Long, long ago, during the socialist days the concept was that the society was the owner of the whole building including all the flats and members were just tenants.  There was neither stamp duty nor registration with regard to transfer of flats. Things then gradually changed. Market prices of flats started shooting up. Transfer of flats were brought under Bombay Stamp Act. Members became owners of flats and the society became a mere service provider. The issue in this case became complicated with multiple nominations and with lapse of time without any action. Someone has suggested that the society should retain a lawyer and seek his advice in matters like this. Who will pay the lawyer? If the society pays they will have to recover the amount from the members.  Three years ago a member of a society went to consumer court against his society and another member. The consumer court imposed a penalty of Rs.50000/- on the society and let off the member saying he was not covered under the Consumer Protection Act. Later the Society called a general meeting. The general body refused to pass the resolution to recover the amount from the members. Who will pay, the managing committee members? I got copies of the court proceedings,  the submissions of the lawyers and the judgment, through RTI,. It was a mess. Co-operative housing societies work on the principle of mutuality. One should have knowledge of that.

Some years back some Tuglak in the co-operative department introduced a section under which if a CHS makes a loss the amount should be recovered from the members of the managing committee, who are only volunteers who spare their valuable time for the work of the society. Mercifully that section has been removed in 2013. But now another Tuglak has brought another law, If, say, an MC member resigns or dies mid-term the vacancy cannot be filled by co-option as it used to be before. The newly appointed election authority should be informed. God only knows what that worthy will do. If societies have to chase the election authority for election/appointments to the managing committee, societies will go headless and recalcitrant members will have a field day.

Dear Dr. MPS RAMANI, 

I have made the pointed suggestion.

In one case (of course some time back) it was observed that the retention fee was  as low as Rs.6000/pa.

What should a member of the Managing Committee or Committee do for an error that might be committed for lack of proper and precise opinion in a specific situation and any penalty or penultimate action!

Beyond a point one should seek legal advise,always.

Or the society may request a lawyer well versed in society matters, take a flat in society.

Or  the members may pool in some money for such opinion if required.

Neverthless all LCI experts mentioned above post at LCI and querist can access them.

With Regards

Dear Perfect Solutions:

What I say apply to Maharashtra only. There are two different types of situations. 1. The situation before 1982 and 2, the situation from  1982 onwards. I am not very sure about the year. It may be earlier or later. Up to 1982 what the member owned was not an immovable property. He owned only shares in the Co-operative Society. There was no stamp duty. As mentioned by me earlier here, when tranfer of flats became subject to stamp duty they became immovable entities subject to property laws. The society was no more the owner of the flat. In fact the soceity was not connected with ownership of the flat. The society wanted only member with respect to each flat who will pay the dues with respect to the flat. There are no provisions in the byelaws for multiple paralell membership of the flat. Only one can be member. Others, if any, can only be associate members. There can be only one vote with respect to one flat. Before 2016 things were even more fluid and funny. As associate member need not have been even part owner of the flat. A society is a body for ownership of common areas and for managing the common affairs. A society does not confer ownership of a flat on any body. I was secretary of our society for decades.

I agree with almost all the points mentioned by you. My answer to your questions are as below:

Any byelaws passed by the society will be valid only if and when approved by the Registrar of  Societies. Model Byelaws have been prepared by the Department of co-operation. Societies have to adopt them with or without amendments. If the amendments are done and then submitted to the Registrar it will be very difficult to get it approved. If no amendments are done Registrar will readily approve. Hence it has been recommended that societies first adopt Model Byelaws as it is and then make amendments and sent to the registrar for approval. Courts give judgments based on Model byelaws where societies have not passed the Model byelaws.

It is not right to say that the Co-operation Department is arbitrary, non-coperative or anything like that. In Maharashtra Co-operative Housing Sector is well- developed. Some 40 years back or so there was no Model Byelaws.  Societies were framing byelaws on their own. In order to streamline the byelaws and make them conform to the Co-operative Act and Co-operative Rules the Model Byelaws were drawn up. It is being continuously updated based on experience and recommendations of the Housing Federation. The Federation is a body all the CHS's in Maharashtra. Individual CHS's can consult and give feed-backs to the Federation. In fact the Secretary in this case could have consulted the Federation. I was Secretary for decades and have faced no major difficulties. Society members are laymen and do not have adequate knowledge of the laws. Again I say that the Maharashtra Co-operative Housing sector is the most advanced in the country. The Federation periodically organise seminars and workshops and request  member societies to send delegates. Generally societies do not care for those things. They throw the Federation journel in the waste paper basket. There is no use of blaming anybody.