Division
of a Housing Society
v General
The Maharashtra Co-operative Societies Act, 1960
(Section 17) and the Maharashtra Co-operative Societies Rules, 1961, provide
for division of a Co-operative Society. The procedural details are given in the
Act and the Rules. They are summarized here.
v Grounds for division
Division of a society is not permissible unless the
Registrar is convinced that there is no alternative other than to divide a
society into one or more subdivisions. The Registrar may consider division of a
Co-operative housing society on the following grounds:
(a) The membership is so large that the affairs
of the society are unmanageable.
(b) The units (building) are located plots which
are far away from each other, rendering the management of the society
difficult.
(c) There are factions in the society.
v The prerequisite for bifurcation
The plots on which the buildings are constructed
should be independent of each other in the Municipal records. If the buildings
are constructed on the same plot, the plot should be divisible. If the plot is
not divisible, bifurcation is not possible.
v Scheme
The Secretary of a society should first prepare a scheme
for two or more units and place the same before the meeting of the managing
committee of the society. The scheme should include
(i) Reasons for bifurcation
(ii) Details of the land and buildings to be
divided
(iii) The basis on which the assets and
liabilities are proposed to be divided
Preliminary approval of the proposed scheme of
division of the society by the Registrar is necessary before the scheme is
finally approved by him.
v Procedure of preliminary Approval
(i) A general body meeting, with due notice as
provided in the Bye-laws of the society, should be convened. A proposal for
division of the society should be included in the agenda of the general body
meeting. Copies of the proposed scheme of division of the society should accompany
the notice and both should be field with the Registrar.
(ii) A resolution, deciding to divide the society
on the basis indicated above has to be passed at the general body meeting with
a simple majority. Thereafter, the society should make an application (for
which no form is prescribed) to the Registrar, together with a copy of the
notice convening the general body meeting, a copy of the proposed scheme of
division of the Society and a copy of the resolution of the general body
meeting of the Society deciding to divide the society. This is necessary to
obtain the Registrar’s preliminary approved of the scheme.
Thanks
& Regards
Adv.
Gajanan Rahate
Ved
Legal, Pune.Mob- 9763040088