Housing Society BYE Law

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Resolution for Adoption of Amended Byelaws

(To be passed in the General Body Meeting)

Resolution No. [___]
Date: [DD/MM/YYYY]
Place: [Registered Office or Meeting Venue of the Society]

Subject: Adoption of Amended Model Byelaws of the Society as per the directives of the Government of Maharashtra and the Maharashtra Co-operative Societies Act, 1960.

"WHEREAS, the Government of Maharashtra has issued updated Model Byelaws for Co-operative Housing Societies under the Maharashtra Co-operative Societies Act, 1960 and Rules, 1961;

AND WHEREAS, it is in the best interest of the society and its members to adopt the latest model byelaws to ensure transparency, legal compliance, and good governance;

NOW, THEREFORE, IT IS HEREBY RESOLVED THAT:
The General Body of [Name of the Society], Registration No. [Reg. No.], situated at [Address], hereby adopts the latest Model Byelaws as prescribed by the Commissioner for Co-operation and Registrar, Co-operative Societies, Maharashtra State, in place of the existing byelaws of the society.

IT IS FURTHER RESOLVED THAT:
The Managing Committee is hereby authorized to:

1. Prepare and submit the necessary application to the Deputy Registrar of Co-operative Societies for registration of the amended byelaws;

2. Submit the required documents including:

   • A certified true copy of this resolution;

   • A copy of the newly adopted byelaws, signed by the Chairman, Secretary, and one Committee Member;

   • Prescribed Form and Fees;

3. Take all further steps and fulfill all formalities necessary for the successful registration of the amended byelaws.

The resolution is passed with the requisite two-thirds majority of the members present at the General Body Meeting."

Proposed by: _____________________
Seconded by: _____________________

Voting Result:
Total Members Present: ______
Members in Favor: ______
Members Against: ______
Abstained: ______

Certified True Copy
For and on behalf of
[Name of the Society]

[Signature]
Chairman / President
Name: __________________
Date: __________________

[Signature]
Secretary
Name: __________________
Date: __________________

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Comparison: Old vs New Model Byelaws (Maharashtra)

Key Benefits of Adopting New Byelaws

• Legal protection from disputes.

• Transparent election process via SCEA.

• Better governance and audit compliance.

• Improved accountability of the Managing Committee.

• Aligns with mandatory statutory provisions of the MCS Act & Rules.

If You Do Not Adopt New Byelaws:

• You still remain bound by the mandatory provisions of the MCS Act and Rules.

• But your internal rules may be obsolete or unenforceable.

• Creates confusion in elections, audits, member rights, legal actions.

• Registrar may intervene or refuse approvals (e.g., redevelopment, deemed conveyance).

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  Contrary Provisions in Housing Society Byelaws vs MCS Act & Rules

  Subject	Old/Conflicting Byelaw Provisions	Contrary Provision in MCS Act / Rules	Legal Position
  1. Elections of Managing Committee	Conducted internally by society, often without supervision or as per outdated byelaws	Section 73CB & Rule 56A: Elections to be conducted by State Co-operative Election Authority (SCEA) for societies with more than 250 members	MCS Act provisions override byelaws; self-managed elections are invalid
  2. Disqualification of Committee Members	Often not updated or missing disqualification criteria	Section 73CA: Lists clear disqualification grounds (e.g., defaults, criminal conviction, non-attendance)	Any byelaw contrary or silent on these disqualifications is unenforceable
  3. Audit and Auditors	Auditor chosen by society without Registrar's panel	Section 81: Audit must be done by an auditor from the Government panel, not by society’s own appointment	Society cannot override; self-appointed audit is invalid
  4. Voting Rights of Associate Members	No voting rights or limited voting only when primary member absent	Rule 56A(2): Associate Member can vote if name is on the share certificate with consent of the main member	New Rule prevails over byelaw if not updated
  5. Holding of AGM	No fixed date or delayed AGMs	Section 75(1): AGM to be held within 6 months of financial year end	Registrar can issue notice and even dissolve the committee for non-compliance
  6. Disputes & Internal Resolution	Byelaws provide internal committee decision as final	Section 91: All disputes to be referred to Co-operative Court	Byelaws cannot override the legal jurisdiction of courts
  7. Nominee Becomes Member	Nominee becomes member upon death of original member	Legal position clarified in SC rulings: Nominee does not inherit ownership; legal heirs have claim under succession law	Byelaw is overridden by succession law
  8. Maintenance Charges	Different flat types charged differently	Model Byelaws + Practice Norms: Common service charges to be equal for all units, others as per area (e.g., water, sinking fund)	Unequal charging is ultra vires if not justified
  9. Bye-law Amendment Approval	No submission to Registrar, considered internally binding	Section 13(2): Amendment becomes valid only after Registrar's approval	Any unregistered amendment is not valid in law
  10. Tenant/Leave & License Permissions	Complete ban or heavy charges without basis	Law permits licensing with intimation to the society; No ban allowed	Such byelaws are unconstitutional & invalid
  11. Share Certificate Issuance Delay	No time limit, kept pending indefinitely	Rule 32(2): Certificate must be issued within 6 months of membership approval	Society is liable for delay
  12. Use of Funds / Investments	Invested without Registrar’s knowledge	Section 70 & Rules 54–55: Society must invest surplus funds only as per government-approved securities and procedures	Misuse can lead to Registrar inquiry / prosecution
  13. Co-option of Committee Members	Co-opted as office bearers	Section 73AAA(2): Co-opted members cannot vote in elections or hold office bearer posts	Such powers in byelaws are illegal
  14. Expulsion of Members	Expulsion decided by committee alone	Section 35: Requires approval of Registrar after fair hearing	Bylaw contrary to this is void

  Legal Hierarchy (for clarity)

  Byelaws are subordinate legislation. They cannot override or dilute the MCS Act or Rules. Any contrary provision in the byelaws is invalid to that extent.

  Legal Precedents

  • State of Maharashtra v. Karvanagar Sahakari Griha Rachana Sanstha (SC, 2000): Byelaws are binding internally but cannot override statutory provisions.

  • Indrani Wahi v. Registrar of Co-operative Societies (SC, 2016): Nominee gets temporary recognition but does not override succession rights.

  • Bombay High Court rulings: Societies must update byelaws periodically to remain in compliance with the latest statutory mandates.

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  ✅ Recommendations

  • Audit existing byelaws against current MCS Act/Rules and model byelaws.

  • Amend and adopt updated byelaws via General Body and get Registrar approval.

  • Educate members to avoid reliance on outdated or illegal clauses.