Tuesday, July 27, 2010

Management of Co-operative Housing Societies Law, Practice and Procedure

PART 2
«     The “Why” of New Model Bye-laws
The Present model Bye-laws were originally approved by the Commissioner of Co-operation. In the said Bye-laws some improvements were required as per suggestions of the Federation and other social bodies. A committee was constituted to suggest changes and additions in the existing modal Bye-laws of the Co-operative Societies. The Model Bye-laws drafted by the committee were discussed with the Secretary (Co-operation), Government of Maharashtra After considering the suggestions of the Secretary, the final draft of Model Bye-laws submitted by the committee. The Secretary has already approved the changes in the Final Draft of the Modal Bye-laws.

To date, there is no law in force which directs a society or Co-operative Housing Society that new model Bye-laws must be adopted by it. Every society can frame its own Bye-laws and make any modification in the old Bye-laws according to its requirements provided that the Bye-laws framed are not contrary to the Maharashtra Co-operative Societies Act, 1960 and its Rules. However, the Registrar will insist on the new housing societies registering the new model Bye-laws at the time of registration of the Co-operative Housing Society.

Now the question is, “can the Registrar of Co-operative Societies compel a society to adopt the new model Bye-laws?” It has been indicated in section 14 of the Maharashtra Co-operative Societies Act that if the Registrar feels that the Bye-laws of a society need to be modified, he may suggest this to the society and may prescribe a time limit within which such modification should be made. As per the duly modified Bye-laws will automatically take effect and will be binding on the society.

Since the new model Bye-laws are an improvement over the present Bye-laws, it is advisable to adopt the same at the earliest. The Commissioner of co-operation has also directed all Co-operative Housing Societies to adopt the new set of Bye-laws. It may be stated that he has exercised his power u/s 14 of the Act. All the discussion in this book is based on the new set of Bye-laws.

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