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PREVAILING LAW RELATING TO THE TRANSFER AND TRANSMISSION OF SHARES ON THE DEATH OF A MEMBER  SHORTCOMINGS

November 14, 2022

 This  blog comes in wake of a judgment I came across of the Bombay High Court in the matter of  Karan Vishnu Khandelwal Omdham Cooperative Housing Society Ltd. Vs Deputy Registrar -K-West In this matter facts of the case were as under: Mannalal Surajmal Khandelwal (deceased) was owner of a flat no.1 and by virtue thereof, was entitled to share certificate. The deceased during his lifetime registered a nomination in the name of Petitioner- his grandson. The nomination was acknowledged by the managing committee of the society in it’s meeting held on and made an entry in the nomination register. Mr. Mannalal Khandelwal died intestate on 20thJanuary, 2011, leaving behind, Rajendra Mannalal Khandelwal (Son- Respondent No.2); Krishnakumar Mannalal Khandelwal (Son); and Petitioner- son of Vishnu Mannalal Khandelwal (predeceased son of deceased). That upon demise of Mannalal Surajmal Khandelwal, Respondent No.2 – Rajendra M. Khandelwal, made an application to the society, inter alia, seeking transfer of membership and the share certificate in his name. Along with the application, he submitted a No Objection cum Declaration’ and indemnity bond made and executed by Krishnakumar Mannalal Khandelwal. This way, the Respondent No.2 claimed 2/3rdshare and interest in the flat and sought transfer of proportionate interest in flat and claimed membership. The application was rejected by the society on 8thAugust, 2018. Whereafter, the Respondent No.2 preferred an appeal under section 23 (2) of the Maharashtra Societies Act (‘MCS Act’ for short), being Appeal No. 09 of 2019 before the Deputy Registrar. The Petitioner sought intervention in the said appeal. The Intervention was allowed. The Deputy Registrar vide order dated 8thFebruary, 2021 allowed the appeal and held that since the Respondent No.2 has acquired 2/3rdright in flat No.1, to that extent, his interest be noted in the society record. In consequence, the Deputy Registrar acknowledged 2/3rdundivided right of the Respondent No.2 and 1/3rdundivided right of the Petitioner in flat No.1 and directed to make entries in the society records. In revision, the Divisional Joint Registrar upheld the order of the Deputy Registrar and dismissed the revision application of the Petitioner. Feeling aggrieved by that order, the Petitioner has filed this petition. MATTER BEFORE BOMBAY HIGH COURT WHEN ERROR OF LAW OCCURRED The matter when came up before the Bombay High Court, the court observed that Registrar passed the impugned order in haste may be at the behest of respondent No.2. Therefore, the impugned order not only suffers from gross irregularity being passed in breach of principles of natural justice but also against the law, and therefore, deserves to be quashed and set aside. While passing the Judgement Bombay High Court relied upon Indrani Wahi Vs. Registrar of Co-operative Societies (Civil Appeal 4930/2006), held that the cooperative society was bound by nomination made by the deceased and it was bound to transfer the shares to the nominee While passing the Judgment Hon’ble Court it relied upon the provisions of Section 154-B(2) of Maharashtra Cooperative Societies (Amendment) Act, 2019. In any event, by. It reads under:     “154-13. On the death of a Member of a society, the society shall transfer share, right, title and interest in […]

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MAHARASHTRA CO-OPERATIVE SOCIETY ACT LACUNAE ABUSE  OF POWER AN ANALYSIS AND SUGGESTIONS

October 5, 2022

“Nearly all men can stand adversity, but if you want to test a men’s character, give him power.” Said Abraham Lincoln This aptly applies to the Managing Committee of a society. Once the power comes neighbor becomes your Master. There are many incidents where the committee manipulates bills and contracts, and even in redevelopment cases three honorary office bearers Secretary, Chairman, and Treasurer have weightage in the finalization of the deal. We see litigations and stalling of projects of a housing society. Human tendency is such that they think of self-gain, instead of taking care and executing responsibilities that they have taken with utmost care and truthfulness. Corrupt minds see financial benefits in every deal. They forget that while doing this they prejudice the property and interests of other flat members. Election: 1 With the new election rules, an election is held similarly to the way in which how elections are held in any Assembly and Parliament. Cartel is formed and elections are won. It has killed the neighborhood’s love, respect, and honor. One family and one flat provision are also violated royally. Even if distant relatives or cousins have a cartel. This creates a monopoly in management. Suggestion: Like Multi Co-operative society, provide that same member or any other joint member from one flat cannot contest the consecutive election. The flat owners/member must take a break or drop out from the next election to give an opportunity to other flat owners/members. So, after serving for 5 years the said member/flat owner cannot contest election for immediate subsequent another term. This will reduce the monopoly of a few flat owners and their families, and their friends. For the convenience of the readers and lawmakers reproduced below is the provision of the Multi-State Cooperative Societies Act,2002 below which restricts reelection after two terms. Prohibition to hold the office of chairperson or president or vice chairperson or vice president in certain cases (1) No member of a board shall be eligible to be elected as the chairperson or president or vice-chairperson or vice-president of a multi-state cooperative society if such member is a Minister in the Central Government or a State Government. (2) No member of a board shall be eligible to be elected as the chairperson or president of a multi-state cooperative society, after he has held the office as such during two consecutive terms, whether full or part: Provided that a member who has ceased to hold the office of the chairperson or president continuously for one full term shall again be eligible for election to the office as such. Explanation:- where any member holding the office of the chairperson or president at the commencement of this Act is against elected to that office after such commencement, he shall for the purpose of this section, be deemed to have held office for one term before such election. Proposed Suggestion : A similar principle must be applied to the housing society. A.2 A Managing Committee was disqualified for 5 years, and an administrator was appointed. Managing Committee manages to suppress the facts from members of the society and manages that the […]

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CAN SOCIETY CHARGE MAINTENANCE CHARGES ON AREA WISE BY WHICH LARGER FLAT OWNERS CONTRIBUTE A LESSER AMOUNT THAN SMALLER UNITS?

September 30, 2022

  Nowadays an ultra-vires method of chargability has been adopted by several societies. The committee uses its majority power and misguides the General Body of members and passes the resolution.  Chargeability on unit-wise results in higher contribution by small flat owners and lower contribution by larger flat owners. Maintenance charges are the foundation to run the expenses of the society. Now first let us see the provisions in the Act of 1960 and the byelaws. Byelaws are contracts between the management and society. Any breach of byelaws amounts to a breach of contract and breach of trust. Any discrimination made is a serious breach of equal rights granted under the constitution of India. BYE-LAWS PROVISIONS FOR CHARGABILITY OF MAINTENANCE: LEVY OF CHARGES OF THE SOCIETY The contribution to be collected from the Members of the Society, towards outgoing and establishment of its funds, referred to in these bye-laws as ‘the charges’ may be in relation to the following : (i) Property Taxes, (ii) Water Charges, (iii) Common Electricity Charges, (iv) Contribution to Repairs and Maintenance Fund, (v) Expenses on repairs and maintenance of the lifts of the Society, including charges for running the lift. (vi) Contribution to the Sinking Fund, (vii) Service Charges, (Viii) Car Parking Charges, (ix) Interest on the defaulted charges, (x) Repayment of the installment of the loan and interest, (xi) Non-occupancy Charges, (xii) Insurance Charges, (xiii) Lease rent, (xiv) Nonagricultural tax. (xv) Education and Training Fund (xvi) Election Fund (xvii) Any Other Charges. The Service charges of the Society referred to at 64 (vii) above shall include the following: Salaries of the office staff, liftmen, watchmen, malis and any other employees of the Society. Where the Society has independent Office, the property taxes, electricity charges, water charges etc. for the same. Printing, Stationery and Postage, Travelling Allowance and conveyance charges to the staff and the Members of the Committee of the Society. Sitting fees paid to the Members of the Committee of the Society, Subscription to the Education Fund of the Maharashtra Rajya Sahakari Sangh Ltd. Annual Subscription of the Housing Federation and any other co-operative institution to which the Society is affiliated. Entrance fees for affiliation to the Housing Federation and any other cooperative institution. Audit Fees for internal, Statutory and reaudit, if any. Expenses incurred at meetings of the general body, the Committee and the Sub-Committee, if any k. Retainer fees, legal charges, statutory enquiry fees. Common electricity charges. Any other charges approved by the General Body at its Meeting. However such charges should not contradict the provisions of the Act, Rules and Bye-laws of the Society. 66. The Committee shall apportion the Share of each Member towards the charges of the Society on the following basis: Property taxes: As fixed by the Local Authority Water Charges: On the basis of the total number and size of inlets provided in each flat. iii. Expenses on repairs and maintenance of the building/buildings of the Society: At the rate fixed at the general body from time to time, subject to the minimum of 0.75 percent per annum, of the construction cost of each flat for meeting […]

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CAN SOCIETY REFUSE TO TRANSFER A FLAT ON AN UNREGISTERED AGREEMENT?

September 7, 2022

CAUTIONARY The Committee of Society should not use the law for harassment but for betterment. We have a question before us. Let us analyze There was a leading case of Kalpita Enclave vs Kiran Builders. This was under Section 7 of the Maharashtra Ownership Flats Act,1963. In this case, two flat purchasers had filed suit under Section 7 of said MOFA, which was objected by the builders. Subsequently, MOFA Section 4 was amended and 4A was inserted. 1[4A Where an agreement for sale entered into under sub-section (1) of Effect of section 4, whether entered into before or after the commencement of the Maharashtra Ownership Flats (Regulation of the promotion of construction, registration sale, Management and transfer) (Amendment and Validating Provisions) Act 1983, remains unregistered for any reason, then notwithstanding anything required to contained in any law for the time being in force, or in any judgment, decree be or order of any Court, it may be received as evidence of a contract in a suit registered for specific performance under Chapter II of the Specific Relief Act, 1963, or of as evidence of part performance of a contract for the purposes of section 53A of the Transfer of Property Act, 1882, or as evidence of any collateral 1882. transaction not required to be affected by registered instrument.]. Subsequently, Maharashtra Textile and Co-operation Ministry came out with a Circular dated 16th October 1991 not to effect transfer by the Society till Stamp Duty and Registration charges are paid. However the unregistered document is not invalid and can be received in evidence as per Section 4A of the MOFA Act,1963. The market value concept came into force on 1st January 1986 and all documents prior thereto are out of the purview of the market value. Concluding Remarks: In current times society is bound to transfer flat upon payment of stamp duty and registration charges. But old documents are out of the scope of the valuation. Documents which are executed up to 31st December 1985 are not liable for market value. Even documents prior to 1986 and subsequent which is unregistered are not invalidated by their non-registration.   SHRUTI DESAI 7th September,2022        

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SUCCESSION, TRANSFER, AND TRANSMISSION OF SHARES IN SOCIETY DIED INTESTATE BUT LEFT NOMINATION

September 6, 2022

SUCCESSION, TRANSFER, AND TRANSMISSION OF SHARES IN SOCIETY A peculiar case came up. The deceased a Hindu was a sole member of society. It was his self-acquired property. He dies suddenly without leaving a WILL. But the wife is a nominee. Out of wedlock, they have only one daughter who is major and unmarried. Wife applies for transmission of shares as per nomination. Shares are transferred by the society without any endorsement that it’s transferred in trust as a nominee or get succession certificate. Now this widow, gifts 50% share to her daughter. This happens when parties prepare documents without consulting a lawyer to save money on professional charges. I am saying this because the daughter has by succession 50% right in the property as a member died intestate without leaving a WILL. There was no need of executing the Deed of Gift. The twist is the case comes now, she applies for endorsement and transfer of 50% share ( which is otherwise there under the law) to the society. After several years Society takes opinion and now seeks a Succession Certificate. How far society is justified? We must first refer to bye-laws If there is a single nominee and if he demands payment of the value of Shares and interest of the deceased Member, in the capital/property of the Society, the Society shall acquire the same and pay him the value thereof as provided under the bye-law No.63. If, however, there are more nominees than one and if they demand payment of the value of the shares and interest of the deceased Member in the capital/property of the Society, the Society shall acquire the same and pay them value thereof as provided under the bye-law referred to above in the proportion mentioned in the nomination form. If no proportion is mentioned in the nomination form, the payment shall be in equal proportion. Bye-law 135 (v). The managing committee of the Society shall take necessary precautions to see that no injustice is done to any widow in the cooperative housing Society after the death of a Member before transferring the flat in her name. In such cases, Society shall verify the nomination form duly submitted by the deceased Member or succession certificate /heirship certificate obtained from the Civil Court under the Indian Succession Act 1925 or Will of the deceased Member duly probated by the Civil Court through the executor of the will. After verifying and taking legal guidance Society then only can take appropriate action within the time limit to avoid further legal complications. This procedure can be followed in all cases after the death of a Society Member Section 30 of Maharashtra Cooperative Societies Act, 1960 provides that: Section 30 – Transfer of interest on the death of a member (1) On the death of a member of a society, the society shall transfer the share or interest of the deceased member to a person or persons nominated in accordance with the rules, or, if no person has been so nominated to such person as may appear to the committee to be the heir or legal representative of […]

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CAN THE COOPERATIVE SOCIETY COMMITTEE BLOCK ACCESS TO THE COMMON TERRACE?

May 26, 2022

 This is a very common dispute. Most of the time Committee decides on whims and fancies. Which is not permissible. If any untoward incident like a fire happens Managing Committee shall be liable for culpability. To start the discussion first we must know the provisions of Byelaws. When Terrace is a common area as per the official plan and agreement with promoter builders it’s a joint and several ownerships. Every society especially as we are discussing housing society is governed by Model Byelaws.  They are framed under the provisions of the Maharashtra Cooperative Society Act,1960 which is a Central Act. Now let us see the provisions of the model bye-laws. 3 xxi. “Open terraces” means terraces which are otherwise not in the exclusive possession of any of the Members. 3 xxii  “Common Areas and Facilities” means a.the land on which the building is located; b. the foundations, columns, girders, beams, supports, main walls,roofs, halls, corridors, lobbies, stair-ways, lifts / escalators , fire escapes and entrances and exits of the building; c. the basements, cellars, yards, gardens, parking areas undemarcated / demarcated parking slots, and storage spaces; d. the premises for the lodging of janitors or persons employed for the management of the property; e. installations of central services such as power, light, gas, water storage and water heating, water harvesting, pump houses, refrigeration, air conditioning, generators, roof top solar devices, common antennas and mass communication and data sharing devices, f.the elevators, tanks, pumps, motors, fans, compressors, ducts and in general all apparatus and installations existing for common use; g. such community and commercial facilities as may have been provided for; h. all other parts of the property necessary or convenient to its existence, maintenance and safety or normally in common use; Under Bylaw 67 (a) (xiv) members are paying for the maintenance of the terrace being a common facility. What society can do is to, regulate permission to use for functions under bye-law 168. Now moving further a law has been passed in Maharashtra namely the Prevention of Fire and Life Safety Measure Act,2016. Under this law, it’s the owner’s responsibility to keep up fire safety measures. In a matter before the division bench Once a person agrees to the sale/ purchase of a floor in a property, they bind themselves to joint access to common areas, its use, and enjoyment by way of such an agreement. Any obstruction caused that results in deprivation of essential amenities that are water, electricity etc. cannot be permitted and requires immediate intervention to rectify the situation as they have a direct bearing on the right to life of a human” All residents must have access to common areas’ | Delhi News – Times of India (indiatimes.com) In yet another case of Tasneem Dhariwala Bombay High Court Division Bench of Justice S.C Dhamadhikari and Justice Gautam Patel in identical facts held,  Such parties cannot be given any discretionary and equitable relief, much less [allowed] to obstruct a public body from performing the statutory duties and ensuring that there is free access to all persons to an area called terrace and, particularly, to take care […]

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TRANSFER AND TRANSMISSION OF SHARES IN A COOPERATIVE HOUSING SOCIETY.

March 30, 2022

Today we are going to discuss unique issues relating to a housing society. Human beings when getting even a little bit of power, behave like King-Queen. This is normal psychology. Taking into consideration this psychology and jurisprudence every law is enacted. Now we shall deal with the questions individually WHAT ARE THE PROVISIONS AND REQUIREMENTS FOR THE TRANSFER/TRANSMISSION OF SHARES UNDER MAHARASHTRA CO-OPERATIVE HOUSING SOCIETY LAWS? ( MAHARASHTRA) Following are the relevant provisions of the Maharashtra Housing Society for transfer and transmission of shares and interest in the society. Open membership.— (1) No society shall, without sufficient cause, refuse admission to membership to any person duly qualified therefore under the provisions of this Act and its bye-laws. (1-A) Where a society refuses to accept the application from an eligible person for admission as a member, or the payment made by him in respect of membership, such person may tender an application in such form as may be prescribed together with payment in respect of membership, if any, to the Registrar, who shall forward the application and the amount, if any so paid, to the society concerned within thirty days from the date of receipt of such application and the amount; and thereupon if the society fails to communicate any decision to the applicant within sixty days from the date of receipt of such application and the amount by the society, the applicant shall be deemed to have become a member of such society. If any question arises whether a person has become a deemed member or otherwise, the same shall be decided by the Registrar after giving a reasonable opportunity of being heard to all the concerned parties. (2) Any person aggrieved by the decision of a society, refusing him admission to its membership, may appeal to the Registrar. Every such appeal, as far as possible, be disposed of by the Registrar within a period of three months from the date of its receipt: Provided that, where such appeal is not so disposed of within the said period of three months, the Registrar shall record the reasons for the delay. (3) The decision of the Registrar in appeal, shall be final and the Registrar shall communicate his  decision to the parties within fifteen days from the date thereof: (4) Without prejudice to the foregoing provisions of this section, in the case of agro-processing societies or any other society for which a definite zone or an area of operation is allotted by the State Government or the Registrar, it shall be obligatory on the part of such society to admit, on an application made to it, every eligible person from that zone or the area of operation, as the case may be, as a member of such society, unless such person is already registered as a member of any other such society, into the same zone or the area of operation. Restrictions on transfer or charge on share or interest.— (1) Subject to the provisions of the last preceding section as to the maximum holding of shares and to any rules made in this behalf, a transfer of, or charge on, […]

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DOES THE INVESTOR HAVE A REMEDY AGAINST ERRING BUILDERS UNDER REAL ESTATE AND REGULATION ACT ,2016 ( RERA) ?

January 13, 2022

To answer this query let us understand the provisions of RERA,2016 2(d) “allottee” in relation to a real estate project means the person to whom a plot, apartment or building, as ,he case may be, has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise but does not include a person to whom such plot, apartment or building, as the case may be, is given on rent. FILING OF COMPLAINTS WITH THE AUTHORITY OR THE ADJUDICATING OFFICER (1) Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the Rules and Regulations made thereunder against any promoter allottee or real estate agent as the case may be. Explanation.—For the purpose of this sub-section “person” shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force. (2) The form, manner, and fees for filing a complaint under sub-section (1) shall be such as may be specified by regulations. The first of such complaint was filed before Maharashtra RERA authority in COMPLAINT NO: CC006000000000789 Mahesh Parian vs Monarch Solitaire Facts: The Complainant has invested some amount in the residential Project known as ‘monarch Solitaire’ and reserved four apartments in the said Project in 2014. The said project is registered under  MahaRERA registration No. P51700012008. The Complainant stated that after reservation of four apartments, Respondent neither gave his invested money back with interest nor is giving the possession of the apartments earmarked for him. Therefore, he prayed that MahaRERA pass an appropriate order for recovery of the principal amount with interest. Observation:  documents entered into between parties Tribunal observed that  the Complainant and Respondent have signed a ‘Memorandum of Understanding’ on 12s March 2014 from which it is seen that the Complainant is an investor in the said Project and not an allottee. The ‘Memorandum of Understanding’ mentions that when the complainant sells his apartments in the market then the profit from such a sale will be shared between the complainant and respondent in the ratio of 70:3O”. It means that the Complainant has the status of a ‘Co-promoter’ of the Project, as clarified in MahaRERA circular.  NOTE: As per records of Maha-RERA this matter was subsequently withdrawn before Appellate Authority. Can draw a hypothesis that it was settled. Next came was M/s. Srushti Sangam Developers Pvt. Ltd vs Sarvapriya Leasing (P) Ltd. APPEAL NO. 000600000001 0557 Facts: The Promoter was developing a project namely Maulick Enclave at Chembur, Mumbai. lt is a redevelopment project consisting of residential premises and shops and offices. promoter and owner of the land had executed registered agreements of redevelopment in the year 2003. As the project was incomplete on 11 May 2017 i.e. on the day of application of RERA Act 2016. promoter has registered a project with [MahaRERA and it bears registration No. P518000J2986.] The investor cum allottee had paid a total sum of Rs.4,53,71,1001 […]

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ANCIENT INDIA VEDIC USAGE OF  CANNABIS  AND TODAY’S NARCOTIC SUBSTANCE

November 7, 2021

  When I wrote a negative comment about Aryan Khan on Facebook, I was taken a back by a question why Sadhus drug themselves. This was asked none other than a Hindu may be pseudo-secular or the one who made Khans rule over this country though being Khan by a dialogue “ I am Khan and I am not a terrorist”. Our generation is not knowledgeable may be literate.  Literacy means which generates a lot of wealth in terms of money.  I then did research and I recalled having read Sam Ved in Gujarati. Som Ras and Som Paan is an integral part of Aryans. Bhang is offered to Lord Shiv as it heals his pain of consuming poisonous substances during Samudra Manthan. In general, devotees offer even milk to relive his sufferings which Lord Shiv consumed to save the universe. Indian history and Hindu Aryan culture have the tradition to use cannabis, bhang, and other plants as medicine.  The mention is found in Atharva Ved.  There is also mention of Soma Paan by Indra Dev Sukta 56 – 5348.  Consumption of Soma Ras made from herbs on the holy mountain of Himalaya gives the different abilities and sparkling personality.  It was used as medicine for different diseases and during surgery in ancient India.  The mention is in Sushrut Samhita. There is also mention of Madya Paan in Chandipath in Adhyay 3 mantra 34-35 where the supreme powered goddess consumes Madhypan before elimination of devil Mahishasur. Cannabis and its derivatives (marijuana, hashish/charas, and bhang) were legally sold in India until 1985, and their recreational use was commonplace.  Consumption of cannabis was not seen as socially deviant behavior and was viewed as being similar to the consumption of alcohol.  Ganja and Charas were considered by upper-class Indians as the poor man’s intoxicant, although the rich consumed bhang during Holi. The United States began to campaign for a worldwide law against all drugs, following the adoption of the Single Convention on Narcotic Drugs in 1961.  Article 49 of the Convention required Parties to completely abolish, over a maximum period of 25 years from the coming into force of the Convention, all quasi-medical use of opium, opium smoking, coca leaf chewing, and non-medical cannabis use.  All production and manufacture of these drugs were also to be abolished within the same time periods.  Only Parties for which such uses were “traditional” could take advantage of the delayed implementation; for others, prohibition was immediate.  As the maximum time ended in 1989, these practices are today fully prohibited, and the drugs may be used only for domestically regulated medical and scientific purposes. However, India opposed the move and withstood American pressure to make cannabis illegal for nearly 25 years.  American pressure increased in the 1980s, and in 1985, the Rajiv Gandhi government succumbed and enacted the NDPS Act, banning all narcotic drugs in India. WHAT IS THE DIFFERENCE BETWEEN ANCIENT INDIAN CANNABIS AND TODAY’S NARCOTIC SUBSTANCE? In ancient India, Som Paan was enjoyed by supreme lords and kings as they had to fight devils and evil forces, which we discussed above.  There was no “Drug abuse” […]

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ABOUT STRIKING DOWN OF 97TH AMENDMENT TO THE CONSTITUTION

August 9, 2021

Part IXB under the chapter heading ‘The Co-operative Societies’. The Constitution 97th Amendment Act was passed by the requisite majority of the Lok Sabha on 27.12.2011 and the Rajya Sabha on 28th December,2011. The Presidential assent to the aforesaid Amendment followed on 12th January, 2012 and the said Amendment was published in the Official Gazette of India on 13th January,2012, coming into force with effect from 15th February,2012. The 97th Constitutional Amendment was challenged in the matter of Rajendra N Shah v. Union of India 2013 (2) G.L.R.  1698    and the Gujarat High Court allowed the said Public Interest Litigation by declaring that the Constitution 97th Amendment Act, 2011 inserting part IXB containing Articles 243ZH to 243ZT is   ultra vires the Constitution of India for not taking recourse to Article 368(2). The important question raised in these petitions and decided by a division bench of the Gujarat High Court by its judgment dated 22nd April,2013 is whether Part IXB is non est for want of ratification by half of the States under the proviso to Article 368(2). The  judgment of the High Court has declared that the said constitutional amendment inserting Part IXB is ultra vires the Constitution of India for want of the requisite ratification under Article 368(2) proviso, which however will not impact amendments that have been made in Article 19(1)(c) and in inserting Article 43B in the Constitution of India. That is formation of Associations and States endeavor to promote voluntary associations under Directive Principles. The amendment was carried out in The Maharashtra Co-operative Societies Act, 1961 in consonance with the provisions of 97th Constitutional Amendment which came into effect from 12th January, 2012. The Maharashtra Co-operative Societies Amendment Act came into effect from 13th August, 2013. New Model bye-laws came into force from September 2014, duly approved by the Commissioner for Co-operation and Registrar, C.S., Maharashtra State, Pune. The overall enforcement and application of the old Bye-Laws are the same with certain modifications to be in consonance and in agreement of the 97th amendment to the Constitution of India. NOW LET US SEE GIST OF THE AMENDMENTS UNDER 97th CONSTITUTIONAL AMENDMENTS : The Constitution of India is amended by 97th Constitution of Amendment and inserted Part IXB to the Constitution of India, a Chapter relating to the Co-operative Societies. Article 243ZH to 243ZT is inserted by this Amendment Act of 2011 with effect from 15th February 2012. A Chapter defines various terms. Authorized person in Article 243ZH(a). Article 243ZH(b) defined the terms Board and it means the Board of Directors or the Governing body of the Society by whatever name called to whom the control of management of the affairs of the Society is entrusted. Article 243ZH(c) defined the terms Co-operative Society and it means a Society registered or deemed to be registered under any law relating to the Co-operative Societies for the time being in force. Article 243ZH(d) defined the terms Multi-state Co-operative Society and it means whose object is not confined to one State and is registered or deemed to be registered under the law for the time being in force relating to such […]

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