• Defunct housing society and right of the members

I purchased a flat from a housing co-operative society in the year 2000 at Ranaghat in West Bengal.  The allotment letter was issued by the co-operative society.  The Co-operative is defunct now.  No General meeting of the society is being held. No  audit of the books of accounts of the co-operative has been done in its inception.  The executive Committee formed at the time of getting the cooperative society registered has not been changed. The maintenance of the house is very poor and since the society is not functioning the flat owner is not in a position to lodge complaints to the office bearer against the same. We are having no title deeds.  We are paying municipal taxes regularly.  I want to know whether we have any valid title of the flat allotted to us?  What steps the members can take to make the cooperative society functional.  How the members can take charge of the Society? 
P. Mukherjee, ranaghat
Asked 2 years ago in Property Law from Ranaghat, West Bengal
1) is the cooperative society registered under provisions of cooperative societies act ? 

2) members can lodge complaint with Registrar of coopertaive societies regarding failure to submit audited accounts , failure to hold AGM 

3) registrar will appoint administrator for the society . 

4) you need registered sale deed for purchase of flat in society . 

5) mere allotment letter is not sufficient to confer clear title to flat 

6) you can move consumer forum against society to direct the society to execute conveyance deed in your favour for purchase of flat
Ajay Sethi
Advocate, Mumbai
23217 Answers
1219 Consultations
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1. The matter is not clear to me. Have you purchased the flat from the Co-Operative Society? Who was the owner of the flat before it was sold to you? Normally. flat owners form Co-Operatve society and they become members/share holders of the society. What is in your case,

2. Please give details of original ownership to advise properly.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
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This s quite common with CHS which is not so in vague or popular in the state of WB.
Lodge a complaint with ARCS who on receipt of complaint would take steps to get the property registered by asking the members to constitute new Managing Committee.
Do not expect anything form the now defunct MC and lodge the complaint asap.
Devajyoti Barman
Advocate, Kolkata
5196 Answers
54 Consultations
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In Dover Co-Operative Housing v State Of West Bengal and Ors (2007) 3 CALLT 522 Hc, 2007 (3) CHN 508, the Hon’ble Calcutta High Court held that:

“Sections 32, 49 and 92 to 94 of the Act, we find that both the State Government and the Registrar of Co-operative Societies have been vested with the overall power of supervision over the affairs and working of a Co-operative Society under the Act and if it appears to the State Government or the Registrar that any of the Co-operative Societies registered under the Act had contravened any of the mandatory statutory provisions, it can suo motu pass necessary direction for rectification of such illegal act notwithstanding the fact that the aggrieved party has not referred the dispute to arbitration in terms of Section 95 of the Act.”

Remedy for working of society 
Members will lodge complaint to Registrar of cooperative societies regarding failure to submit audited accounts and not working proper.Registrar take necessary actions and send notice to present office bearers
Ajay N S
Advocate, Ernakulam
1915 Answers
19 Consultations
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1. Your query is ambiguous. How did you purchase the flat? If you are not possessing any title deed of the property then on what basis do you claim to be the lawful owner of the property. 

2. Allotment letter is not a document of title. There has to be a sale deed executed in your favour.

3. You can file a complaint to the Registrar of cooperative societies regarding the cooperative society being dysfunctional. However, I must add that your complaint will not survive if you do not have a valid title to the property.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
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A. In my opinion, I can presume that your society has been registered but now not administering properly or completely wind up.

B.You have a right to move an ARCS or DRCS in respect of this function of the society and seek an appointment of the administrator and obtain direction to register the flat in your name of the society.

C. The mere issue of allotment letter doesn't create a legal title over the property. However, it can be used as admissible evidence to establish your possession and prima facie case over the property.
B.T. Ravi
Advocate, Bangalore
736 Answers
29 Consultations
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1) since managing committee is defunct complain to registrar and seek appointment of administrator 

2) administrator will take charge of affairs of the society and call for elections as soon as possible and new MC would be elected from the members 

3) builder has to execute regd sale deed in favour of flat owners . 

4) you can move consumer forum against the builder/promoter  to direct him to execute sale deed in favour of flat owners
Ajay Sethi
Advocate, Mumbai
23217 Answers
1219 Consultations
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A housing society is responsible for maintenance of flats and must compensate any victim of negligence. ‘Maintenance is society’s responsibility’

If the managing committee is not working properly file a complaint to registrar of housing societies. Registrar has the discretion to appoint an Administrator to carry out the Management of the Society. He regulates the housing societies under his jurisdiction and usually handles complaints pertaining to:
1.	Tampering, suppression or incomplete maintenance of records.
2.	Misappropriation of funds and improper auditing.
3.	Registration, membership and issuance of share certificates.
4.	Disqualification of member or unfair electoral practices.
5.	Demand for excess premium for transfer of share.
Ajay N S
Advocate, Ernakulam
1915 Answers
19 Consultations
5.0 on 5.0
1. You mentioned "Flat was purchased from the cooperative society against payment as per payment schedule",

2. Did you make the payment to the  Co-operative Society? If so, then how did the builder get his consideration? 

3. However, if the Committee of the Society has become defunct, then call for a special general meeting by all the members of the society & select/elect the managing committee,

4. Conduct the meeting properly with quorum and record the proceeding and the resolution adopted by the meeting,

5. Once the new committe is formed, the problems can be sorted out.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
5.0 on 5.0

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