• Bifurcation / Division of Co Op Housing Society - Gujarat

Ours is a cooperative housing society situated in Ahmedabad, Gujarat.

The society is having ground floor and first floor as commercial shops and offices, having 32 members. The residential part is the rest of the floors till 10th floor, comprises of 70 members.

The representative members to the managing committee from of the commercial part have expressed their desire to get seperated from the society for administrative purposes, although the society committee has not given any reason or excuse to them for doing so.

As the secretary of the society, I would like to know the procedure for the division for administrative purpose and society's common space/land falling in the commercial area.
Asked 7 years ago in Property Law
Religion: Hindu

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10 Answers

If the present society is looking after 40 commercial and residential apartments the commercial site should register another society in this regard and complete the formation of welfare Association for the separation purpose maintenance charges normally collected from the commercial area owners attached at the high rate then the residential unit holders if there is no common facility like lift and any common area is there then this is this is very easy to do so otherwise both of the societies should move through MOU for common area.

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

 there is clear division of nature of members of society. In this scenario the members belong to commercial shops should file an application before the society registrar for bifurcation of the society on the basis of nature of members. When there is conflict of interest between the members on the basis of their nature then society registrar has power to bifurcate the society and form the new Society for the owners of commercial shops. After receiving the application the society Registrar will issue a notice to the current society and give him an opportunity of hearing against the bifurcation of society. After receiving the notice from the society registrar the chairman is bound to call a General Meeting and prepare a minute. That minute will be produced before the society registrar then after hearing the both parties, society Registrar will take appropriate decision and bifurcate the society if there is conflict of interest among the members

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

there cannot be sub division of society as only one building has been constructed of residential and commercial premises

2) if there were 2 separate building then you could have gone in for sub division of plot , formation of separate society

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

in case of sub division of plot parking etc would also get separated

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

There are broad guidelines, or bye-laws, that every housing society adopts when it is registered for taking decisions on such issues.

The rules and regulations govern the day-to-day functioning of the housing society and are crucial to its smooth running.

As a secretary you cannot decide about this, you may have to convene a general body meeting or a special meeting, discuss the points raised by certain members (Commercial owners) place it before the body, let the discussion take place for and against the proposal.

The body will pass a resolution for approving the decision approved by the majority of the members as per the bye laws of the association.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Thanks very muuch for your quick response, However, first, we are looking for the procedure and secondly, whether society's common place remains with the society for use of residential members as parking, etc. as we do not want to give away our property to the new outfit by the commercial.

The bye laws are the guidelines and they are typically framed under the Co-operative Societies Act, which is a Central Act. This provides specific guidelines for a society to be registered with the municipal corporations, its governance structures, common area maintenance rights, dos & don'ts, accounting practices and various other covenants related to leasing/ purchasing a house within the society,"

You can decide about the the issues in the meeting taking the bye laws as guidelines.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

In your case, the building you are staying are a mixed-use building. This is a type of a property that includes both commercial and residential space.

In your case yes, you can segregate the two by letting the commercial half have its own administrative office. But then you will need to execute some document or paperwork which will bifurcate the division of important elements including parking, the usage of electricity, the repairs etc. This should be done with prior permission of the authorities including the municipal and government agencies.

If the paperwork is done beforehand it will not create problems in the future and your society can avoid every kind of complications of the future.

Gowaal Padavi
Advocate, Mumbai
1919 Answers
5 Consultations

I hope the query is solved.

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

The society can be split into two societies provided the Registrar feel the same important in interest of that society. The Committee should draw up a division plan and submit an application to the Registrar giving full details about the division. Reason will have to be specified in the Resolution of the managing committee.The Registrar may, after examining the details furnished in the application and other particulars which he may call upon the society to furnish, give his approval to the division if he considers such division to be in the interest of the society.It will be advisable that the society pays off all its liabilities in full before making the application and declare in state the fact in the application that no liabilities are required to be split. This will simplify certain procedures.After the Registrar’s approval is received the Committee should convene a special general meeting by giving notice of at least 15 clear days to all its members and pass a resolution for the division by two-third majority of the members present and voting at the meeting.The resolution so passed shall contain the purpose and the full scheme indicating how the proposed division would be useful to the society and be given effect to.The society shall submit a report to the Registrar of the action taken by it and request him to give effect to its decision division or by registering the new societies and canceling the registration of the society which has been divided.On receipt of the report from the society as above, the Registrar shall, after satisfying himself that the procedure has been properly followed, register the divided societies and cancel the registration of the society which has been divided. It will take some time to conduct the above splitting of society.

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You can retain the same name if required but the registration no will be different. Generally Share certificate will also be issued afresh.

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

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