Special Issues

Part 9

v     Share or interest not liable to attachment

The share or interest of a member in the capital of a society, or in the loanstock  issued by a housing society, or in the funds raised by a society from its members by way of savings deposit, shall not be liable to attachment or sale under any decree or order of a court for or in respect of any debt or liability incurred by the member : and accordingly, neither the Official Assignee under the presidency-towns Insolvency Act, 1909, nor a receiver under any corresponding law for the time being in force, shall be entitled to, or have any claim on, such share or interest.

v     Insolvency of Member

Notwithstanding anything contained in the Presidency – towns Insolvency Act, 1909, the Provincial Insolvency Act,1920, or any corresponding law for the time being in force, the dues of a society from a member, in any insolvency proceeding against him, shall in order of priority be next to the dues payable by him to Government or to local authority.

[Mapusa Urban Co-operative Bank Ltd. v. Dattarya A.P. Mhambre, 1999(2) Mh. L.J.505]

v           F.S.I. violation by the Promoter prior to formation of the societies

It is a rampant practice of promoters / Builders to construct multi-storeyed building in clear and flagrant violations of the B.M.C. Act, 1888, as amended such activity is also in clear and flagrant violations of the D.C. Regulations for greater Bombay, framed from time to time and in many cases it is the flat-purchasers who are the ultimate sufferers. However, in some cases the flat purchasers are aware of the said violations.

Padamchand J. Kothari and Ors. V/s. State of Maharashtra and Ors. [1985 C.T.J. 563 (Bom.H.C.)].

v       F.S.I. violation by the Registered C.H.Societies

  There are very few instances in which a Registered Co-operative Housing Society has constructed any additional structure in excess of the available F.S.I., on the property owned by it However, the decision of the Hon’ble Supreme Court, given on the said issue, in the case of pratibha C.H.S. Ltd is one of the Landmark Judgements and the same has been reproduced (i.e. partly) herein below:

Pratibha C.H.S. Ltd; and Anr. V/s State of Maharashtra and Ors. [1992 C.T.J. 274 (SC)]

v     F.S.I.  violation by the Promoter prior to formation of the societies

It is a rampant practice of promoters / Builders to construct multi-storeyed building in clear and flagrant violations of the B.M.C. Act,1888, as amended such activity is also in clear and flagrant violations of the D.C. Regulations for greater Bombay, framed time to time and in many cases it is the flat-purchasers who are the ultimate sufferers. However, in some cases the flat purchasers are aware of the said violations.

Padamchand J. Kothari  and Ors. V/s. State of Maharashtra and Ors. [1985 C.T.J. 563 (Bom. H.C.)]

v     F.S.I. violation by the Registered C.H. Societies

There are very few instances in which a Registered Co-operative Housing Society has constructed any additional structure in excess of the available F.S.I., on the property owned by it However, the decision of the Hon’ble Supreme Court, given on the said issue, in the case of pratibha C.H.S. Ltd is one of the Judgements and the same has been reproduced (i.e. partly) hereinbelow:

Prathibha C.H.S. Ltd; and Anr. V/s State of Maharashtra and Ors. [1992 C.T.J. 274 (SC)]