Mumbai Housing Society Queries: 'Committee Must Give 14 Days' Notice To Members For AGM,' Says Expert

What is the time-frame for issuing notice and circulating the minutes of the AGM? Is it permissible to extend the deadline for holding an AGM beyond September 30th?

Manjusha Rane, Dadar

In case of AGM the managing committee (MC) shall give 14 days’ clear notice to members. A copy of the notice is required to be sent to the registrar and the federation of which the society is a member. The MC shall finalise the draft minutes within three months of the date of the AGM and circulate it among members within 15 days of the meeting at which the draft was finalised. Members should send their observations within 15 days of the date of its circulation. The MC shall finalise the minutes and the secretary shall ensure that the same are entered in the minutes book.

The time period can generally not be extended beyond September 30. However, the registrar may in exceptional situations extend the date. This provision was introduced in the aftermath of the pandemic granting extension of 12 months to hold the AGM from the close of the financial year 2020 and 2021. (Section 75 of MCS Act and Bye Law 94)

In 2023, one of the bank deposit certificates was not renewed in time by the then MC, causing an interest loss to the society. The then AGM decided not to initiate any action against the MC. Can I demand recovery of the amount lost from the members since I was absent at the AGM?

Prashant Dighe, Mulund

It is the MC’s responsibility to renew the certificates in time. Your AGM has noted the same but decided not to initiate any penal action. Any decision taken by the general body is binding on members. Since you have not attended the meeting, your complaint will not be entertained by the society. You will have to file a complaint with the cooperative court under Section 91 of the MCS Act in accordance with the circular of the cooperative department dated May 4, 2023. However, the MC should instruct the bank for auto-renewal of certificates.

Our society took over from the builder in April 2017. However, the OC has not been obtained by the builder so far. We had to procure electricity and water on our own and pay additional taxes since the OC is not in place. Can we initiate action to recover the amount of excess taxes paid from the builder? Will the delay be condoned?

Brajesh Pandey, Borivali

Any project lacking OC as on May 1, 2017, regardless of whether the handover has been done or not, was mandated to register with MahaRERA. Therefore, the society ought to have notified MahaRERA if the builder failed to register. Simultaneously, society members are also at fault for accepting possession of their flats without an OC. If your society opts to pursue the matter before the consumer commission for directives compelling the builder to obtain the OC, the period of two-year limitation for filing the case will not be applicable.

Since obtaining the OC and providing conveyance are statutory obligations, the cause of action remains ongoing. Thus, no application for delay condonation is necessary. However, if the society intends to claim reimbursement for additional electricity and water charges incurred due to the absence of an OC, even with a delay condonation application, it may be challenging to justify such a prolonged delay unless the society has compelling reasons for not approaching the consumer court for as long as seven years.

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat.

The questions, in brief, may be sent to fpjchs@gmail.com

Published on: Monday, April 22, 2024, 10:19 AM IST