General Body of co-operative society is supreme ???

It is said that general body of members of a co-operative society is a supreme body to take final decision in all matters connected with the management of a co-operative society. Those members who had formed the society and who have got all the work done are having one share costing Rs.100/- only. The new members now joining after gap of several years are also becoming member by paying a fee of one share costing Rs.100/-.

Decision of General Body Meeting

In a case before the Financial Commissioner, Delhi Guru CGHS Ltd, Rohini, Delhi versus its 3 members, the Society had passed a resolution in its General Body Meeting that new members have to pay Rs.6000/-as share money to become new member of the Society.

Contest by new members

When the new members came to know that as per bye laws, cost of one share is Rs.100/- and it is essential to take one share only. Therefore, the decision of the general body to charge Rs.6000/- as share money from them is mala- fide, because the amount of Rs.5900/- will keep lying with the society for ever.

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Decision of General Body meeting

Since the general body meeting of the members, overlooked, ignored bye laws, their decision was considered as illegal decision. Therefore, the general body of members, if take a decision inconsistent with bye laws or DCS Act or DCS Rules, it shall amount to illegal decision. If any member challenges in a court of law, the general body shall not be supreme authority before a court of law.

Methods to keep general body as final authority

If the Society would have consulted a person expert in co-operative matters Or would have sought permission of the Registrar of co-operative society, before taking the decision in their general body meeting, they would have taken a correct decision. It is not essential too, that if an officer of the co-operative society has sent a letter allowing the co-operative society to do any act and later on it is found that, the act is contrary to the provisions of law. That particular act of the society / general body meeting shall come illegal ab-initio and un-acceptable by law.

CONCLUSION:

General body meeting of co-operative society is not always supreme or final authority. The decision of the general meeting if found contrary to provisions of laws and bye laws, then it is not final authority.

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14 Comments

  • renu saini says:

    I am member and resident of Cooperative Group Housing Society in Dwarka and the Management Committee is taking common area electricity charges separately besides Common Area Maintenance monthly. Please clarify that when common area electricity charges is one of the component of Common Area Maintenance, how can Management Committee charge the common area electricity charges separately.

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  • Sukesh Gulati says:

    As a matter of fact, common area electricity charges should not be billed separately on members as these expenses should be a component of The Maintenance charges in a CGHS.
    Sukesh Gulati

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  • suresh a s says:

    i am interested in getting assistance of recovery of mainatainanace charges from members

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  • P K JAIN says:

    Is Building Fund levied by the President of CGHS stating in the minutes that it was approved by members by raising hands can be said to be legal if there was no such item in the agenda of the said GBM nor there was “any other with the permission of the chair”

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  • P K JAIN says:

    There was no item of Raising Building Fund in the agenda of a GBM of CGHS. Also there was no “any other item with the permission of the chair”. Can still be Building Fund said to have been approved in the said GBM be taken as decision of the general body when no discussion/debate took place ?

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  • Karan says:

    Can “BUILDING FUND” be used for repairs of Lifts just by approval in MC meeting ? Is approval of GBM required to spend any money out of the Building Fund and is there defined expenditures which can only be used out of Building Fund ? I

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  • MADHU JAIN says:

    Can MC of its own approve for Expenditure out of “Building Fund” ? Is approval of GBM not necessary ?

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  • Kundan says:

    If GBM decide that bachelor tenant not allowed in society ???Is it legal????

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  • Kundan says:

    Sir should I file a case against it??? Or what to do to make my point legal???

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  • kul bhushan sharma says:

    I am the vice president of a co operative group housing society in dwarka … i would like to know what is the procedure to resign from the MC and to whom will i give my resignation .

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  • MRS. SUNAINA S. RAJBHAR says:

    Pls note that in Sunflower CHS Ltd., Station Pada Road, Near HP Godown, Badlapur East-431503. We need an inspection done in our Society. Upto July 16, 2017 there has been no record maintained properly, Two families in the Society have created havoc, spoiling and ruling all the permanent members in the Society. Mrs. Jayanti J Kotiyan and her son Kiran Kotiyan are illegally forcing terms on other members. I am unable and others too are feeling it hard to pay their maintenance due to this fraud family, adding to them Mrs. Jyoti Panchal had become a Secretary and given the power to her son to take part in cheating all the other families by collecting maintenance funds, and with the excuse of carrying out repairs, etc. are quoting extra amount and enjoying at the cost of Sunflower CHS Society.

    Recently on 16th July 2017, they amongst themselves, then kept a meeting and discussed to make me a Secretary, but continued with keeping Mrs. Jayanti Kotiyan as a Chairman. Now it is nearly one month i have not received the handover, plus this lady is creating problem and dictating terms on Banking Signatures. I await your immediate action on our Society.
    We seriously need help from you all.

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  • Maria Joseph says:

    Hi Sirs
    in a RWA , where there is no clarity about pending amount collection from members who are habitually delaying ,how to streamline the collection
    Please give some guidelines

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  • Sandeep says:

    My tenant passed away leaving behind disputed payments.
    There was dispute between my tenant & MC (management committee) on the fees for 3rd car parking & the resulting delayed payment fee arising out of non payment of 3rd car parking. All the other charges were duly paid by my tenant.

    MC did not take any action from April 2012 till now on him to recover the disputed payment.

    Unfortunately, my tenant died end of last year. Now the MC is threatening me to pay up or else they will disconnect my electricity connection.

    What should I be doing ?.. Is there a quick legal recourse I need to take, If i am in the right.

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  • Dr Vinod Kohli says:

    Builder is charging Telecom Company for giving permission to dig to lay Fibre optic cables in Colony.
    RWAs were neither informed nor permission taken to carryout.
    Can RWAs ask Builder to pay that amount to RWAs of society.

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