Q. Can the general body remove the office bearers & the entire managing committee by moving 'no confidence motion' against it? Is there any provision of no confidence motion under MCS Act or Rules or Byelaws? If such no confidence motion is passed or if the entire committee resigns, what is the process to elect/appoint the new committee?
Manmeet Singh, Sion
A. According to Bye-law 125, there is a provision for moving a "no-confidence motion" against the office-bearers of the society by the managing committee in a special committee meeting presided over by the registrar or their deputy. The motion can be initiated by a notice from 1/3rd of the committee members and must be passed by a 2/3rd majority of those present. If the motion fails to secure the required 2/3rd majority, another motion of "no-confidence" against the same officebearers cannot be moved until six months have passed from the date of the preceding motion. Additionally, Bye-law 131(e) addresses the situation where the entire managing committee wishes to resign.
In such cases, the resignations are presented to the general body, and the resignations become effective from the date of acceptance by the general body. When the entire managing committee resigns, the outgoing office-bearers are required to inform the Registrar about the resignation. The Registrar, in turn, may take necessary actions as outlined in Section 77A of the Maharashtra Cooperative Societies (MCS) Act. However, the existing committee will continue to handle the routine functions of the society until the registrar makes alternate arrangements for the management of the society. Refer Bye-law 141(e). The Registrar, either on their own or upon application by any member of the society, may issue an order to appoint a member/s of the society as a member/s of the managing committee or constitute a threemember managing committee, or appoint an authorised officer to manage the day-today affairs of the society.
Before passing such an order, the registrar is required to publish a notice on the society's notice board, inviting objections and suggestions regarding the proposed order within a specified period. However, if the registrar deems immediate action is necessary, the order may be passed without issuing such a notice. The committee or authorized officer so appointed will serve for a maximum period of twelve months from the date of assuming office and must take necessary steps to form a new managing committee within that time frame.
Q. We appointed a developer and signed a Development Agreement (DA) in 2015. However, the developer could not initiate the redevelopment so far. Now we wish to terminate the DA and appoint another developer. Are we required to comply with the 79A procedure again?
Harshada Godbole, Vile Parle
A. Your society must terminate the Development Agreement (DA) with the developer. Any earnest money or other advances given by the developer to the society/member should be dealt with according to the terms of the DA. Regarding the consent given by the members in favour of the developer, the general body must appoint a new developer. The Managing Committee is required to follow the process outlined in Section 79A, ensuring that the consent of the members is obtained in the presence of the Registrar or an official deputed by them. Please ensure that the process is conducted in accordance with the guidelines by the Maharashtra Government's GR dated 4.7.2019.
Q. We have 4 shops in our society. The shop owners are using the common area in front of their respective shops to either display their products or some hoarding advertising the products they sell. The society has written letters to these owners twice to remove their products/display but they do not listen. What action can be taken by the society?
Prakrut Samant, Nerul
A. Common spaces within the society are the property of the society and cannot be leased, let out, or used by members for personal purposes. If shop owners have encroached upon the open area, they must vacate the space. If they fail to do so, they will be liable to pay a penalty equivalent to five times the monthly maintenance charges for the duration of the encroachment. The managing committee is authorised to address this issue and levy the penalty on the shop owners' bills if they have not responded to letters sent by the society's secretary. This penalty can be applied retrospectively for the period during which the violation occurred.
If the shop owners have made any structural changes without obtaining prior permission from the society and the BMC, the society has the right to file a complaint with the BMC for illegal alterations.
The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com
