CHS membership, restrictions and their validity
Siddharth Thakur | Pune
A co-operative housing society (CHS) member needn’t be a member for life. Unfortunately, not many people seem to be aware of this. As per law, there’re quite a few circumstances under which a person ceases to be a member of the CHS.
“For instance, if the member offers his resignation letter to the society and the managing committee accepts it, then he ceases to be a CHS member,” says Anand Niwas Co-operative Housing Society secretary Rajeev Bhatia. “Even if the member transfers all his shares and interest in the property of the society or say, in the case of the member’s death, the cessation occurs,” he adds.
Legally, cessation of membership can also take place if the member is adjudged as an insolvent or legally disabled from continuing as member. This happens also if the whereabouts of the member are not known for a period of seven whole years at a stretch and if his shares and interest in the property or capital of the CHS is not claimed by anybody else.
Similarly, a person also ceases to be a CHS member on his expulsion from the membership of the society. “You know the basic duty of a CHS member is to safeguard the interests of the society, so anyone whose actions are detrimental to the interests of the society can be expelled,” maintains Mr Bhatia.
“A CHS is entitled to expel a member if s/he brings disrepute to the society or has done something that’s damaging to the interest of the CHS – say if a member has deceived the society by giving false information or using his flat for immoral or illegal purposes,” offers the CHS secretary.
During such instances of cessation of membership, it’s the duty of the managing committee of the society to record the facts of the case in the minutes of its meetings. “And accordingly, the secretary of the society then informs the concerned members in writing within seven days of the date on which such a decision was taken by the committee,” informs Laxmi Co-operative Housing Society secretary Sanjay Sharma.
The same procedure takes place in the case of the cessation of memberships of associate members as well as nominal members of a society. Much along the lines of a member’s cessation from the CHS, a person ceases to be an associate member of the society, generally when the original member ceases to be a member of the CHS or on the death of the associate member.
“Under certain circumstances, the associate member may submit his resignation, which may be accepted by the society or then, the associate member ceases to be a part of the society on intimation from the original member of termination of the occupant’s nomination,” offers Ms Sharma. Incidentally, under similar circumstances, even the nominal member - the sub-lettee, licensee or caretaker or possessor in any other manner of the flat - ceases to be a member of the society.
CHS restrictions not many know about
When it comes to rights and liabilities most Co-operative Housing Society (CHS) members are at least aware of them, but unfortunately, that’s not the case with most restrictions that are binding on members.
Consider the restrictions on holding more than one flat in a CHS, for instance. Under the By-law of the Society, it has been provided that no individual member of the CHS shall be eligible to hold more than one flat, in the area of operation of the society in his name or in the name of any of the members of his family without the previous consent in writing of the committee of the society.
The member who desires to hold the additional flat needs to make an application to the secretary of the CHS in the prescribed form, giving adequate justification for holding the additional flat. The same procedure needs to be followed in the case of members wanting to exchange flats.
Incidentally, there’re certain restrictions on CHS members who wish to sublet their flats. In order to sublet one’s flat or give it on leave and license basis, the member has make an application to the society and receive a written permission for the same. And the member must satisfy the committee about his inability to occupy the flat for some genuine reason.
Similarly, a CHS member has to obtain permission of the committee in writing in order to make any additions, alterations or repairs in his flat. After that, the CHS secretary and the committee members consider the application for which they may, with prior intimation to the member, enter his flat to examine its condition for ascertaining the necessary repairs, if any.
And then, there’re certain general restrictions on CHS members such as they cannot do anything in their flats which may cause nuisance, annoyance or inconvenience to any of the other members in the society. Legal action can be taken against the member if the act is wrongful and causes some loss or inconvenience to other members.
The CHS has the right to make certain rules and regulations that must be abided by all the members in order to ensure the smooth functioning of the society. For instance, some societies have restrictions on the playing of games in the society’s compound, the use of building terrace, cutting trees in the compound of the society and the like.
Societies should fix up the hours during which members’ children can play within the compound in the general body meeting of the society. And, penalties should be imposed on those who don’t comply with the restrictions. And such decisions are taken by majority voting in the general body meeting after taking into consideration a number of factors like the building’s location, surrounding environment, available play-space for children, etc.
On the validity of CHS membership!
In order to ascertain the validity of a person’s application for membership in a society, it’s important to understand the concept of competence in order to figure out what makes an individual competent enough to enter into a contract under the Indian Contract Act, 1872.
It’s only when a person is competent – not a minor, not of unsound mind or an insolvent – that his consent, on the face of it, is free. Else, he will be eligible for membership of the Society through his guardian or legal representative.
And then, if his consent has been obtained by fraud, conceit, misrepresentation, mistake or coercion, it gets disqualified and subsequently defeats the contract itself.
That apart, one who resides or intends to settle down and resides in the area of operation of the Society and does not own a house, a plot or a Flat in his name or in the name of any Members of his family, in the area of operation of the Society, or owns it but gives an undertaking under the bye-law No 19 (vi), will be eligible for Membership of the Society.
A minor or a person of unsound mind, inheriting Shares and/or interest of the deceased Member in the capital/property of the Society, will be eligible for Membership of the Society through his guardian or legal representative, on an application of the prescribed form, along with the undertaking/declarations, in the prescribed forms, mentioned in the application.
Notwithstanding anything contained in these bye-laws, admission of a person to Membership of the Society directly or as a result of transfer of Shares and Interest of the existing Member in the capital/property of the Society, shall be subject to the approval of the Collector of the District, if the Society has been given land by the Government. Family ‘means and includes husband, wife, sons having no independent source of income, unmarried daughters and person/persons dependent on the Member’. Signatories to the application for registration of the Society shall be deemed to be Members of the Society after its Registration.
The number of Members in the Society shall be limited to the number of Flats available for allotment. A firm registered under Indian Partnership Act, 1932, a Company registered under the Societies Registration Act, 1860 or a Cooperative Society registered or deemed to be registered under the law for the time being in force, as provided under Section 22(1) (b), (c), (d), (e) and (f) of the Act, may be eligible to Membership of the Society.
However, admission of firms and companies to the Membership of the Society and allotment of Flats to them shall be regulated in accordance with the Notifications issued by the State Government from time to time under the Second Provision to Section 22 of the Act.
As per Model bye-law no. 18, a Public Trust can be admitted as a Member of the Society. It may, however, be kept in mind that if the Flat is allotted for a residential purpose, the Public Trust cannot utilise the same for Commercial Activities.
If you have a housing society related query or need a legal consultation on a related matter, you may fill this Query Form or visit www.SocietyMatters.in
A co-operative housing society (CHS) member needn’t be a member for life. Unfortunately, not many people seem to be aware of this. As per law, there’re quite a few circumstances under which a person ceases to be a member of the CHS.
“For instance, if the member offers his resignation letter to the society and the managing committee accepts it, then he ceases to be a CHS member,” says Anand Niwas Co-operative Housing Society secretary Rajeev Bhatia. “Even if the member transfers all his shares and interest in the property of the society or say, in the case of the member’s death, the cessation occurs,” he adds.
Legally, cessation of membership can also take place if the member is adjudged as an insolvent or legally disabled from continuing as member. This happens also if the whereabouts of the member are not known for a period of seven whole years at a stretch and if his shares and interest in the property or capital of the CHS is not claimed by anybody else.
Similarly, a person also ceases to be a CHS member on his expulsion from the membership of the society. “You know the basic duty of a CHS member is to safeguard the interests of the society, so anyone whose actions are detrimental to the interests of the society can be expelled,” maintains Mr Bhatia.
“A CHS is entitled to expel a member if s/he brings disrepute to the society or has done something that’s damaging to the interest of the CHS – say if a member has deceived the society by giving false information or using his flat for immoral or illegal purposes,” offers the CHS secretary.
During such instances of cessation of membership, it’s the duty of the managing committee of the society to record the facts of the case in the minutes of its meetings. “And accordingly, the secretary of the society then informs the concerned members in writing within seven days of the date on which such a decision was taken by the committee,” informs Laxmi Co-operative Housing Society secretary Sanjay Sharma.
The same procedure takes place in the case of the cessation of memberships of associate members as well as nominal members of a society. Much along the lines of a member’s cessation from the CHS, a person ceases to be an associate member of the society, generally when the original member ceases to be a member of the CHS or on the death of the associate member.
“Under certain circumstances, the associate member may submit his resignation, which may be accepted by the society or then, the associate member ceases to be a part of the society on intimation from the original member of termination of the occupant’s nomination,” offers Ms Sharma. Incidentally, under similar circumstances, even the nominal member - the sub-lettee, licensee or caretaker or possessor in any other manner of the flat - ceases to be a member of the society.
CHS restrictions not many know about
When it comes to rights and liabilities most Co-operative Housing Society (CHS) members are at least aware of them, but unfortunately, that’s not the case with most restrictions that are binding on members.
Consider the restrictions on holding more than one flat in a CHS, for instance. Under the By-law of the Society, it has been provided that no individual member of the CHS shall be eligible to hold more than one flat, in the area of operation of the society in his name or in the name of any of the members of his family without the previous consent in writing of the committee of the society.
The member who desires to hold the additional flat needs to make an application to the secretary of the CHS in the prescribed form, giving adequate justification for holding the additional flat. The same procedure needs to be followed in the case of members wanting to exchange flats.
Incidentally, there’re certain restrictions on CHS members who wish to sublet their flats. In order to sublet one’s flat or give it on leave and license basis, the member has make an application to the society and receive a written permission for the same. And the member must satisfy the committee about his inability to occupy the flat for some genuine reason.
Similarly, a CHS member has to obtain permission of the committee in writing in order to make any additions, alterations or repairs in his flat. After that, the CHS secretary and the committee members consider the application for which they may, with prior intimation to the member, enter his flat to examine its condition for ascertaining the necessary repairs, if any.
And then, there’re certain general restrictions on CHS members such as they cannot do anything in their flats which may cause nuisance, annoyance or inconvenience to any of the other members in the society. Legal action can be taken against the member if the act is wrongful and causes some loss or inconvenience to other members.
The CHS has the right to make certain rules and regulations that must be abided by all the members in order to ensure the smooth functioning of the society. For instance, some societies have restrictions on the playing of games in the society’s compound, the use of building terrace, cutting trees in the compound of the society and the like.
Societies should fix up the hours during which members’ children can play within the compound in the general body meeting of the society. And, penalties should be imposed on those who don’t comply with the restrictions. And such decisions are taken by majority voting in the general body meeting after taking into consideration a number of factors like the building’s location, surrounding environment, available play-space for children, etc.
On the validity of CHS membership!
In order to ascertain the validity of a person’s application for membership in a society, it’s important to understand the concept of competence in order to figure out what makes an individual competent enough to enter into a contract under the Indian Contract Act, 1872.
It’s only when a person is competent – not a minor, not of unsound mind or an insolvent – that his consent, on the face of it, is free. Else, he will be eligible for membership of the Society through his guardian or legal representative.
And then, if his consent has been obtained by fraud, conceit, misrepresentation, mistake or coercion, it gets disqualified and subsequently defeats the contract itself.
That apart, one who resides or intends to settle down and resides in the area of operation of the Society and does not own a house, a plot or a Flat in his name or in the name of any Members of his family, in the area of operation of the Society, or owns it but gives an undertaking under the bye-law No 19 (vi), will be eligible for Membership of the Society.
A minor or a person of unsound mind, inheriting Shares and/or interest of the deceased Member in the capital/property of the Society, will be eligible for Membership of the Society through his guardian or legal representative, on an application of the prescribed form, along with the undertaking/declarations, in the prescribed forms, mentioned in the application.
Notwithstanding anything contained in these bye-laws, admission of a person to Membership of the Society directly or as a result of transfer of Shares and Interest of the existing Member in the capital/property of the Society, shall be subject to the approval of the Collector of the District, if the Society has been given land by the Government. Family ‘means and includes husband, wife, sons having no independent source of income, unmarried daughters and person/persons dependent on the Member’. Signatories to the application for registration of the Society shall be deemed to be Members of the Society after its Registration.
The number of Members in the Society shall be limited to the number of Flats available for allotment. A firm registered under Indian Partnership Act, 1932, a Company registered under the Societies Registration Act, 1860 or a Cooperative Society registered or deemed to be registered under the law for the time being in force, as provided under Section 22(1) (b), (c), (d), (e) and (f) of the Act, may be eligible to Membership of the Society.
However, admission of firms and companies to the Membership of the Society and allotment of Flats to them shall be regulated in accordance with the Notifications issued by the State Government from time to time under the Second Provision to Section 22 of the Act.
As per Model bye-law no. 18, a Public Trust can be admitted as a Member of the Society. It may, however, be kept in mind that if the Flat is allotted for a residential purpose, the Public Trust cannot utilise the same for Commercial Activities.
If you have a housing society related query or need a legal consultation on a related matter, you may fill this Query Form or visit www.SocietyMatters.in
