Vivek (Advocate) 13 January 2011

Society Minutes regarding implement of rule

Dear Friends,

One Row house is situated within the society at Airoli and we intend to sell it, as the ownership of Row House is in the name of Daughter and Wife and Power of Attorney is Father ( i.e.,Father of daughter and husband of his wife).

The Society has on dated 13th Dec,2010 conducted Minutes of Managing Committee Meeting, in the minutes it they had stated "It has been decided to implement the rule that Members intending to sell their Flat/Row House need to inform the Hon' Secretary in advance, so that interested Members of the society can approach the sellers to negotiate and purchase the flat/row house on sale. A notice to this effect will be circulated to all Members of the Society."
We had received this copy on dated 08th January,2011. Can you kindly suggest what course should I adopt when I am getting good buyer who is ready to pay more consideration amount than these Society members. Or what remedy should I adopt to sale it to outsider i.e., not a existing Society Member.

Thanks and Regards

Vivek

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2 Replies

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 14 January 2011

for VIVEK :

1. If your row-houses are registered under the MCS Act as a Coop. Hsg.Society, then the rules under the MCS Act will apply.

2. The managing committee (MC) resoultion is false, illegal and contrary to the provisions of the MCS Act. They are not binding on the society members.

3. Obtain a certified copy of the MC resolution and attach it with a complaint to the ward registrar (ccop) of your area, seeking directions and a hearing with the MC in the office of the ward registrar, who will issue an order over-turning the MC resolution.

4. Society membership is a "OPEN MEMBERSHIP" and any flat can be sold to anybody. IF the MC makes it compulsory to sell flats between its own members, then it is highly dictatorial and illegal.

Keep Smiling .... Hemant Agarwal

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 26 November 2011

A Housing Society, or an agglomeration of houses, need not necessarily be registered under the Co-operative Societies Act. Mostly CIDCO buildings are registered with the Registrar of Assurances. In such buildings a member may have to go to a civil court to get justice. The resolution of the Managing Committee appears to me as an innocent one. I think if no member is interested a member can sell his house to anyone as he likes. Have they not fixed a time limit for the offer to be open to members? There cannot be a resolution without a time limit. It is important to note that your managing committee resolution says that any existing member can “negotiate” with you. A negotiation can also fail. If you want to sell the flat to an outside person, you secretly negotiate with him and come to an understanding regarding the transaction. Then you inform the Secretary. If any existing member comes to negotiate, you quote a very high price, which he would not be prepared to accept. When no member is willing to pay your price, sell it to the outside person.

If your Society is a Co-operative Society then your interests are protected as conveyed by advocate Aggarwal. If your property is registered with Registrar of Assurances, then you are independent absolute owner and you are free to sell it to anybody.

In any case a Managing Committee has no powers to pass such a resolution.