It has no powers to hold GB and pass resolution
2) it would not be binding on the owners
3) audited accounts have to be approved by all owners
Expired Association Registration
I am one of the owners residing in Sare Homes, Thiruporur (Tamil Nadu). There is an association which it claims that it has the legal right to run the maintenance functions on one hand, and on the other has filed a case in RERA against the Promoter to complete the Project. The Promoter exited the Project abruptly leaving a group of individuals part of the association to run the maintenance under the association banner. Now the association's registration has expired. A few of the owners filed several complaints to the Registrar of Societies, and so RoS has declined to take up the matter of extending/renewing the registration. Also, as per the association's bye-laws monthly subscription should be paid by each member and if any member defaults for 3 months, then that owner ceases to be a member. The association stopped collecting the subscription for more than 3 years now, and so as per bye-laws there are no members in the association. RoS was also notified regarding this. Also, the Hon'ble HC (Chennai) has issued Writ of Mandamus against the association to conduct an enquiry into the complaints of the owners. RoS is yet to abide HC orders. In the mean time, the association has been conducting GB meetings and passing resolutions. The question is - Can an expired association have legal rights to hold GB? Will the resolutions passed in the GB bind the owners? Can the association adopt Financial statements when the matter is sub-judice with RoS?
Asked 2 years ago in Property Law
Religion: Hindu
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11 Answers
An association the registration of which is expired has no right to hold any meetings including GB meetings. Even if such meetings are held, they are not legal and have no legal significance. The matter can be informed to registrar and it may also amount to contempt of Court by the people conducting such meetings.
What are the legal options available to the owners when the association adopts incomplete and incorrect audited statements in the GB, other than highlighting it to RoS?
Asked 2 years ago
Obtain court orders for fresh audit of books of accounts
You can file a complaint to dy registrar and get an administrator appointed for the same you can also request him to conduct a fresh audit through panel auditor
What you are suspecting is offence of falsification of accounts which amounts to fraud. A criminal complaint can be made against those responsible.
- An unregistered association / whose registration already expired having no legal status for passing any resolution and to hold the meeting and to pass any resolution.
- Further , such association also cannot collect the maintenance from its members , and in such cases , the members are themselves held accountable.
- Hence, the resolutions passed in the GB will not bound the owners, and also cannot adopt financial statement specially when the matter is sub-judice with ROS.
How the society doing day to day functioning without proper association ?
There have to be some makeshift arrangement to collect common electric bill, water bill, cleaning, security payment, maintenance of amenities etc.
Well the current association actions are completely illegal.
There have to be newly elected association to manage current day to day affairs .
The society being functus officio cannot pass such resolutions.
G.RAJAGANAPATHY
HighCourt of Madras
The association is defunct or not existing, the fact of which has been notified to the registrar of cooperative society and also to the high court by a writ of mandamus.
Therefore it is not understood that under what constitutional authority does the association conducts a GB meeting or passing resolution to collect maintenance amount from the people who are not even the members of the association.
If anyone has paid any amount then he can demand the audited statement of the expenses and income.
You may approach court to obtain the audited statements of the income and expenses for the funds collected by the association.
Dear Client,
As per the facts which have been provided, the resolutions passed in the GB will not bound the owners as the association does not have any legal status.
Thank You.
