Model Bye–Laws of Cooperative Housing Society

VII. MEMBERS, THEIR RIGHTS, RESPONSIBILITIES AND LIABILITIES

II. RIGHTS AND DUTIES OF MEMBERS

(A) Rights of Members: Bye Law No 22

Bye Law No 22(a) Rights of Members

A Member shall be entitled to exercise such rights as provided in the Act, Rules and Bye-laws. Provided that no Member shall exercise the rights of Member of a Society, until he has made such payment to the Society in respect of Membership, or acquired such interest in the Society.

Bye Law No 22(b)

Provided further that, in case of increase in minimum contribution of Member in share capital to exercise right of Membership, the Society shall give a due notice of demand to the Members and give reasonable period of time to comply with.

Active Members

Bye Law No 22(c)

A Member shall be termed as an 'Active Member' if he / she fulfill the following conditions: viz.

i. He / She has attended at least One General Body Meeting in previous consecutive period of five years,
ii. He / She has purchased and owns Flat / Unit in the Society, and
iii. He / She has paid the Society Maintenance Service and other charges regularly

Bye Law No 22(d)

A Member who is not an 'Active Member' shall be 'Non-Active Member'.

Bye Law No 22(e)

Society shall classify the Members as 'Active' or ‘Non-Active' Member at the close of every financial year.

i. Society shall communicate to every Non-Active Member about his classification, within a period of 30 days from 31st March of every year as prescribed under these By-laws as per Appendix No. 30 [FORM J-1]
ii. In case of a dispute about classification of a Member being Active or Non-Active, an appeal shall lie with the Registrar within a period of 60 days from the date of communication of such classification.

Non-Active Members

Bye Law No 22(f)

A 'Non Active Member' can be reclassified as 'Active Member' from the date he satisfies the conditions laid down under Byelaw no. 22(c).


(B) Getting Copy of the Bye-laws, Audit Report & Inspection of Books & Records and getting copies thereof
(Bye Law No. 23)

Bye Law No 23. Inspect Society's record and getting copies thereof

Bye Law No 23(a) Rights of inspection of documents and getting copies thereof

A Member shall have right to inspect free of cost books, registers documents etc. as provided in Section 32 (1) of the Act and get copies of the documents as provided under Section 32 (2) of the Act, on payment of the fees prescribed under the bye-law No. 172.

Bye Law No 23(b) Inspection of Books of Records

A Member shall be entitled to receive a copy of the Approved Bye-laws, Audit Report of the Society, on payment of charges prescribed thereof.

(C) Occupation of Flats (Bye Law No 24)

Bye Law No 24.(a)

The Member, who is deemed to have been allotted the flat under the Bye-law No. 76(a) of the Society shall have a right to occupy the flat subject to the terms and conditions set out in the letter in the prescribed form under the said bye-law.


Bye Law No 24(b)

The Associate/Nominal Member may have a right to occupy the flat with the consent of the Member and written intimation to the Society, subject to the conditions set out by the General Body Meeting.

(D) Restrictions on Rights of Associate and Nominal Members (Bye Law No 25 and 26)

Bye Law No 25. No rights of Membership for Associate Member except that under Section 27(2)

No Associate Member shall have any rights or privileges of an active Member except as provided under Section 27(2) of the Act and he fulfills the conditions of bye-law 22(a)

Bye Law No 26. No rights of Membership to a nominal Member

A nominal Member shall have no rights such as Member.

(E) Resignation of Membership

(1) Resignation by a Member (Bye Law No 27)

Bye Law No 27(a) Notice of resignation of Membership of the Society.

A Member may resign from Membership after giving three months notice in the prescribed form to the Secretary of the Society as provided under Rule 21(1) of the Rules.

Bye Law No 27(b) Resignation not to be accepted unless charges of the Society are fully paid

No resignation of a Member of the Society shall be accepted unless such Member has made payment of the charges payable to the Society in full.

Bye Law No 27(c) Communication of outstanding charges due to Society from the Member

Where any charges are found payable by the Member to the Society, the Secretary of the Society shall intimate the same giving full details and reasons of dues thereof to the Member within 15 days of the receipt of the notice of resignation, advising him to make payment thereof within 30 days of the date of intimation.

Bye Law No 27(d) Acceptance of resignation where no charges of the Society are outstanding

Where there are no charges of the Society outstanding with the Member, the Committee shall accept the resignation of the Member and the Secretary of the Society shall communicate the same to the Member within a period of 3 months from the date of the receipt of the notice of the resignation.

Bye Law No 27(e) Communication of reasons for rejection of resignation

Where any resignation is rejected, the Committee shall record the reasons therefore and communicate the same to the Member concerned within three months from the date of receipt of notice of resignation.

(2) Resignation by a Associate Member (Bye Law No 28)

Bye Law No 28. Resignation by an Associate Member

An Associate Member may resign his Membership any time by writing the letter of resignation to the Secretary of the Society, through the Member, with whom he held the shares of the Society jointly. The Secretary of the Society shall place the letter of the resignation of the Associate Member, before the meeting of the Committee, held next after the receipt of the letter of the resignation, duly recommended by the Member for acceptance by the Committee. The decision of the Committee, accepting the resignation of the Associate Member shall be communicated by the Secretary of the Society to the Member and his associate Member within 15 days of the decision by the Committee. If the resignation is rejected, the Committee shall record the reasons therefore in the minutes of its meeting and the Secretary shall communicate the same to the Member and his associate Member within the time specified above.

(3) Resignation by a Nominal Member, occupying the flat on behalf of the Firm, Company or any other Body Corporate (Bye Law No 29)

Bye Law No 29. Resignation by an Associate Member

If there is a nominal Member, occupying the flat on behalf of a firm, company or any other body corporate, he/she may resign his nominal Membership, at any time, by writing the letter of the resignation to the Secretary of the Society through the firm, the company or any other body corporate, on whose behalf he is occupying the flat. The Secretary of the Society shall place the letter of resignation, before the meeting of the committee, held next after the receipt of the letter of the resignation of the Nominal Member, duly recommended by the firm, the company or any other body corporate for acceptance by the Committee. The decision of the Committee, accepting the resignation shall be communicated by the Secretary of the Society to the firm, company or the body corporate and the nominal Member, within 15 days of the decision by the Committee. If the resignation is rejected, the Committee shall record reasons therefor in the minutes of its meeting and the Secretary shall communicate the same to the firm, company or the body corporate and the nominal Member within the time specified above

(4) Resignation by a Nominal Member, who is Sub-lettee, Licensee, Caretaker etc. (Bye Law No. 30 and 31)

Bye Law No 30. Resignation by a sublettee. licensee or caretaker

A sub-letter, licensee, caretaker or possessor of a flat or part thereof, who has been admitted as a nominal Member of the Society may resign his nominal Membership at any time, by writing the letter of the resignation to the Secretary of the Society, through the Member who has been permitted by the Committee to sub-let, give on leave and licence or caretaker basis the flat or part thereof or part with its possession in any other manner. The Secretary of the Society shall place the letter of the resignation before the meeting of the Committee, held next after the receipt of the letter of the resignation duly recommended by the Member concerned for acceptance by the Committee. The decision of the Committee, accepting the resignation shall be communicated by the Secretary of the Society to the Member concerned and his sub-lettee the licensee, the caretaker, or as the case may be, the possessor of the flat or part thereof, within 15 days of the decision by the Committee. If the resignation is rejected, the Committee shall record reasons there for in the minutes of its meeting and the secretary of the Society shall communicate the same to the Member concerned and his sub-lettee, licensee or caretaker etc. within the time specified above.

Bye Law No 31. Acquisition of shares and interest of the Member in the capital/property of the Society

On acceptance of the resignation of the Member, under bye-law No. 27, the Society shall acquire the shares and interest of the Member in the capital/ property of the Society and pay him the value thereof as provided under the bye-law No. 66.

(F) Nomination by Members (Bye Law No 32, 33, 34, 35, 36 and 37)

Bye Law No 32. Procedure for Nomination by a Member and its revocation / revision

A Member and / or Associate Member of the Society may by writing under his hand, in the prescribed form, nominate a person or persons to whom the whole or part of the shares and / or interest of the Member in the capital / property of the Society shall be transferred in the event of his death. The acknowledgement of the nomination by the Secretary, shall be deemed to be the acceptance of nomination by the Secretary. No fees shall be charged for recording the first nomination. A Member may revoke or revise his nomination, at any time, by making an application, in writing, under his hand, to the Secretary of the Society. The acknowledgement of the variation in nomination / subsequent nomination by the Secretary, shall be deemed to be the cancellation of earlier nomination. Every revision of the nomination shall be charged a fee of Rs. 100/-

Bye Law No 33. Recording of Nomination or revocations / revisions thereof

On receipt of the Nomination form, or the letter for revocation of the earlier nomination, the same shall be placed before the meeting of the Committee. held next after the receipt of the Nomination form, or the letter of revocation of the earlier nomination, by the Secretary of the Society for recording the same in the minutes of the Committee. Every such nomination or revocation thereof shall be entered in the register of nominations by the Secretary of the Society within 7 days of the meeting of the Committee, in which it was recorded.

Bye Law No 34. Transfer of shares and interest of the deceased Member in the capital / property of the Nominee/Nominees

Subject to the provisions of the Section 30 of MCS Act. 1960, bye-law No. 17A or 19, on the Death of a Member, the Society shall transfer the shares and interest of the deceased Member in the Capital/Property of the Society to the Nominee/Nominees and in proportion with the shares and interest held by the deceased Member, in case property is purchased by Member and associate Member jointly. In the event of death of the Member, Nominee/Nominees shall submit the Application for Membership, within six months from the death of a Member. If there are more than one Nominee, on the death of a Member, such Nominees shall make Joint Application to the Society and indicate the name of the Nominee who should be enrolled as Member. The other nominees shall be enrolled as Joint/Associate Members unless the nominees indicate otherwise. The nominees shall also file an Indemnity Bond in the prescribed form Indemnifying the Society against any claims made to the shares and interest of the deceased Member in the Capital/Property of the Society by any of them, in case only one nominee is indicated by the Nominees for Membership of the Society.
Note: In case of acquiring Membership on the basis of Nomination, such Member shall hold the flat / unit in 'trust' till all the Legal Heirs are brought on record and shall not have the right to ownership and shall not create third party interest or alienation in any way whatsoever.

Bye Law No 35. Transfer of shares and interest of the deceased Member in the capital/property of the Society to the heir

Where a Member of the Society dies without making a nomination, or no nominee comes forward for transfer, the Society shall invite within six month from the information of his death, claims or objections to the proposed transfer of Shares and interest of the deceased Member, in the capital/property of the Society, by a public notice, in the prescribed form, exhibited on the notice board of the the Society. It shall also publish such notice in at least two local news papers, having wide circulation. The entire expenses of publication of the notice shall be recoverable from the value of shares and interest of the deceased Member in the capital/property of the Society. After taking into consideration the claims or objections received, in response to the said notice, and after making such inquiries as the committee considers proper in the circumstances prevailing, the committee shall decide as to the person, who in its opinion is the heir or legal representative of the deceased Member. Such a person will be eligible to be a Member of the Society subject to the provisions of the bye-laws Nos. 17(a) or 19, provided that he gives an Indemnity Bond along with his application for Membership in the prescribed form, indemnifying the Society against any claims made to the shares and interest of the deceased Member in the capital/ property of the Society, at any time in future, by any person. If there are more claimants than one, they shall be asked to make the affidavit as to who should become a Member of the Society and such person, named in the affidavit shall furnish the indemnity bond as indicated above along with application for Membership, referred to above. If however, the committee is not able to decide as to the person who is the heir/legal representative of the deceased Member or the claimants do not come to the agreement, as to who should become the Member of the Society, the Committee shall call upon them to produce succession certificate from the Competent Court. If, however, there is no claimant, the shares and interest of the deceased Member in the capital/property of the Society shall vest in the Society.

Bye Law No 36. Payment of the value of Shares and interest of the deceased Member in the capital / property of the society to the nominee/nominees

If there is the 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 proportions.

Bye Law No 37. Payment of the value of Shares and interest of the deceased Member in the capital / property of the Society to the heir / Legal Representative

If, in the opinion of the Committee, there is only one heir / legal representative of the deceased Member and if he demands payment of the value of the shares and interest of the deceased Member in the capital/property of the Society, the Society may acquire the same and pay him the value thereof as provided under the bye-law No. 63 after obtaining the indemnity bond referred to in the bye-law No. 34. If, in the opinion of the Committee, there are more heirs/legal representatives than one and if they demand payment of the value of Shares and interest of the deceased Member in the capital/property of the Society, the Society may acquire the same and pay them value thereof in equal proportion as provided under the bye-law No. 66, after obtaining the Indemnity Bond referred to in the bye-law No. 35, from all the heirs/legal representatives jointly.

(G) Transfer of Shares and Interest in the Capital/Property of the Society (Bye Law No. 38, 39 and 40)

Bye Law No 38(a) Notice of transfer of Shares and interest in the capital/property of the Society

A Member, desiring to transfer his shares and interest in the capital/property of the Society shall give 15 days' notice of his intention to do so to the Secretary of the Society in the prescribed form, along with the consent of the proposed transferee in the prescribed form.

Bye Law No 38(b) Secretary to place such notice before next Committee Meeting

On receipt of such notice, the Secretary of the Society shall place the same before the meeting of the Committee, held next after the receipt of the notice, pointing out whether the Member is prima-fascia eligible to transfer his shares and interest in the capital/property of the Society, in view of the provisions of Section 29(2)(a) of the Act .

Bye Law No 38(c) Informing ineligibility within 8 days

In the event of ineligibility (in view of the provisions of section 29(2)(a) & (b) of the act) of the Member to transfer his shares and interest in the capital/property of the Society, the Committee shall direct the Secretary of the Society to inform the Member accordingly within 8 days of the decision of the Committee.

Bye Law No 38(d) No Objection Certificate not required but if required may be issued within 1 month

"No Objection Certificate" of the Society is not required to transfer the shares and interest of the transferor to transferee. However in case such a certificate is required by the transferor or transferee, he shall apply to the Society and Committee of the Society may consider such application on merit, within one month.

Bye Law No 38(e) Documents to be submitted by the Transferor/Transferee.

The Transferor / Transferee shall submit following documents and fulfill compliance as under:

i. application in the prescribed form, for transfer of his shares and interest in the capital / property of the Society, along with the Share Certificate;
ii. application in the prescribed form for Membership of the proposed Transferee;
iii. resignation in the prescribed form Member / Transferor;
iv. Registered Agreement with Stamp Duty paid;
v. valid reasons for the proposed transfer;
vi. undertaking to discharge all the liabilities to the Society by Transferor;
vii. payment of the transfer fee of Rs. 500/-
viii. remittance of entrance fee of Rs. 100/- payable by the proposed Transferee;
ix. payment of amount of premium at the rate to be fixed by the General Body Meeting but within the limits as prescribed under the circular, issued by the Department of Co-operation / Government of Maharashtra, from time to time. No additional amount towards donation or contribution to any other funds or under any other pretext shall be recovered from transferor or transferee.
x. submission of 'No Objection Certificate’, required under any law for the time being in force or order or sanction issued by the Government, any financing agency or any other authority;
xi. the undertaking / declaration in compliance with the provisions of any law for the time being in force, in such form as is prescribed under these bye-laws.

Note: The condition at sr. no. (ix) above shall not apply to transfers of shares and interest, of the transferor in the capital / property of the Society to the Member of his family or to his nominee or his heir / legal representative after his death and in case of mutual exchange of flats amongst the Members.

Bye Law No 39(a) Disposal of transfer applications

The procedure for disposal of applications for transfers of shares and/ or interest of Members in the capital/property of the Society as laid down under the bye-law No. 62 shall be followed by the Secretary and the Committee of the Society.

Bye Law No 39(b) Committee / General Body not to ordinarily refuse any application for Membership or transfer of Shares

A meeting of the Committee or the General Body, as the case may be, shall not refuse any application for admission to Membership of transfer of shares and interest in the capital/property of the Society except on the ground of non­compliance of the provisions of the Act, the Rules and the Bye-laws of the Society or any other law or order issued by the Government in exercise of the statutory powers vested in it.

Bye Law No 39(c) Deemed to have been Admitted if not communicated within three months

If the decision of the Committee/General Body meeting as the case may be, on the application for transfer of Shares and/or interest in the capital/ property of the Society is not communicated to the applicant within three months of its receipt, the transfer application shall be deemed to have been accepted and the transferee shall be deemed to have been admitted as a Member of the Society as provided under Section 22(2) of the Act.

Bye Law No 39(d) Unauthorised transfer-null and void

Any transfer made in contravention of the Act, Rules or the Bye-laws shall be void and not effective against the Society

Bye Law No 40. Rights of Membership when to be exercised by the transferee

The Transferee shall be eligible to exercise the rights of Membership on receipt of the letter in the prescribed form from the Society or order under section 22 or 23 of the Act from the Registrar; subject to the provisions of the MCS Act 1960, Rules and Bye-laws.

(H) Exchange of Flats (Bye Law No 41 and 42)

Bye Law No 41. Application for exchange of flats by the Members of the

The Members, desiring to exchange their flats, shall make a joint application to the Secretary of the Society, containing the following details:
a. The names of the Members concerned;
b. The distinctive numbers of their respective flats;
c. The carpet areas (in sq. metres), of their respective flats;
d. The building number/numbers or name/names of the building/buildings in which the respective flats are situated;
e. The reasons for exchange of flats.

Bye Law No 42. Disposal of applications for exchanges of flats by Members

The procedure for disposal of applications for exchanges of flats as indicated in the bye-law No. 62 shall be followed by the Secretary and the Committee of the Society.

(I) Sub-letting etc. of Flats (Bye Law No 43 and 44)

Bye Law No 43.

(1) A member shall intimate to the society, of subletting his flat or giving on leave and license basis or care taker basis or parting with its possession in any other manner, however the member shall submit a copy of leave and license agreement and copy of intimation report to the police station.

(2) No permission of the Society is required to sublet the flat / shop. However the intimation needs to be given to the society 8 days before such subletting.

Bye Law No 44.

No Member of the Society shall assign, mortgage or create any charge on his occupancy right in the flat without the previous permission in writing of the Society.

Provided that such permission of the Society will not be required for assigning, mortgaging or creating any charge on the occupancy right in the flat for the purpose of obtaining loan, either for purchase of the flat or for liquidating the liability incurred by him for the said purpose by way of loan or advance from the employer or the Member or from the Life Insurance Corporation of India or from a Bank or the Society or any other agency approved by the Commissioner for Co-operation and Registrar, C.S.M.S. Pune.

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