Redevelopment of old housing societies in Mumbai: Indemnity bond in form m-20 MSC act

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REDEVELOPMENT OF OLD HOUSING SOCIETIES IN MUMBAI: INDEMNITY BOND IN FORM M- 20 UNDER THE MAHARASHTRA CO-OP SOCIETIES ACT:

I take this opportunity to write something on Bond required to be executed by the members of the Managing Committee of the Co-operative Housing Societies within 15 days of their assuming the office under the Maharashtra Co-operative Societies Act 1960.
The provision is important because if the bond is not executed within 15 days of his assuming the office or if the member fails to execute the bond he shall be deemed to have vacated his office as a member of the Managing Committee.

Attention is also invited to the Bye-law no 136 of the old Model bye-laws and bye-law no 138 of the new Model bye-laws which lay down as under:

"The members of the Committee shall be jointly and severally liable for making good any loss which the society may suffer on account of their negligence or omission to perform any of the duties and functions cast on them under the Act, Rules and Bye-laws of the Society."

In addition to the above bye-laws, an amendment was inserted by Mah. 41 of 2000, S. 3 of the amending Act (w.e.f. 23-8-2000) to Section 73 by introducing Section (1AB) to the Maharashtra Co-operative Societies Act 1960. Similarly Rule 58-A was inserted by G.N. of 18-2-2002 in the Maharashtra Co-operative Societies Rules, 1961 and Form M-20 was also inserted by G.N. of 18-2-2002.