Bond required to be
executed by the members of the Managing Committee of the Co-operative Housing
Societies within 45 days from the date of their assuming the office whichever
is earlier, under the Maharashtra Co-operative Societies Act 1960.
The
provision is important because if the bond is not executed within 45 days from
the date of their assuming the office whichever is earlier or if the member
fails to execute the bond he shall be deemed to have vacated his office as a
member of the Managing Committee.
Now what happens to
many housing societies, where Managing Committees are unaware, ignorant or have
simply ignored or not bothered about the bond? In such cases, according to
Registrar’s office “we offer to disband the committee and call for fresh
elections”
The member who fails
to execute such a bond within the specified period shall be deemed to have
vacated his office as a member of the committee. Bombay High Court too has
upheld this provision of MCS Act.
Attention
is also invited to the Bye-law no 136 of the old Model bye-laws and bye-law no 138 of the new
Model bye-laws which lay down as under:
"The members of the Committee shall be jointly
and severally liable for making good any loss which the society may suffer on
account of their negligence or omission to perform any of the duties and
functions cast on them under the Act, Rules and Bye-laws of the
Society."
In
addition to the above bye-laws, an amendment was inserted by Mah. 41 of 2000,
S. 3 of the amending Act (w.e.f. 23-8-2000) to Section 73 by introducing Section (1AB)
to the Maharashtra Co-operative Societies Act 1960. Similarly Rule 58-A
was inserted by G.N. of 18-2-2002 in the Maharashtra Co-operative Societies Rules,
1961 and Form M-20 was also inserted by G.N. of 18-2-2002.
Section
73(1AB) of the Maharashtra
Co-operative Societies Act 1960 is reproduced below:
"The Members of the Committee shall be jointly
and severally responsible for all the decisions taken by the committee
during its term relating to the business of the society. The members of the
committee shall be jointly and severally responsible for all the acts and
omissions detrimental to the interest of the society. Every such member shall
execute a bond to that effect within fifteen days of his assuming the office,
in the form as specified by the State Government by general or
special order.
The member, who fails to execute such bond within
the specified period i.e. within fifteen days from joining the Managing
Committee member, shall be deemed to have vacated his office as a member of the
committee."
Further,
the power to decide whether the losses incurred by the society are due to
act or omissions of members of the committee is given to the Registrar
"Provided that, before fixing any
responsibility mentioned above, the Registrar shall inspect the records of the
society and decide as to whether the losses incurred by the society are on
account of acts or omissions on the part of the members of the committee or on
account of any natural calamities, accident or any circumstances beyond the
control of such members."
Rule
58-A of the Maharashtra Co-operative
Societies Rules 1961 is reproduced below:
"Every elected member of the Managing Committee
shall execute a bond in Form M-20 within fifteen days of his assuming
the office. Such bond shall be executed on the stamp paper as provided under
the Bombay Stamp Act 1958. The expenditure on stamp paper shall be borne by the
society. The Chief Executive Officer / secretary of the society shall
receive such bonds and keep them on record of the society and accordingly
inform the Registrar within Fifteen days from the formation of the
Committee."
It
is clear from above that the bond must be executed within fifteen days of
assuming of office by each member of the Managing Committee in Form M-20
on a stamp paper. Failure will invite penal consequences.
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