Legal Expenses

In our Co-operative Housing Society, water pump operator had a altercation with a society member outside his flat. The member had purchased this flat in resale and the flat was under renovation. It seemed that in the evening , the workers did not close one tap inadvertently, resulting in leakage/flowing of water. It is said that the Pump Operator had a heated exchange with the lady of that flat, provoked by that her son struck the pump operator with a stick. The Operator hurt his leg. The matter was reported to Police. FIR lodged. In her counter complaint ,the lady complained police regarding misbehavior etc against the Pump Operator. Based on this incident, In General Body meeting (On line), the Managing Committee put an Agenda Point- “Approval of legal expenses to defend legal cases against society employees.” The Bye Laws does not envisage any rule on such issues. However, the proposal was cleared after voting. The opinion sought: i) Whether M.C./General Body is competent enough to expend public money for such legal cases with out ascertaining the reason/fault and proper amendment in Bye Laws. There are more than 300 flats in the society. .At the time of voting there were 70 members , 40 members voted in favour. No limit for expenditure has been fixed. ii) Would it also cover the legal expenses for the employee’s case against the society member.