Karnataka societies - conduct of society

Dear Experts,

Require inputs to file a petition/complaint to the Registrar regarding the misappropriation of funds in my apartment in Bangalore which is currently registered under Karnataka Societies Registration Act, 1960.

1.       I raised concerns about amendments/resolutions made in the AGM not being filed with the Registrar in the AGM conducted in 2013. However no action has been taken to file them and resolutions based on certain individuals whims and fancies was getting passed in the name of majority (no attendance record has been communicated. The President has informed that Registrar has asked to submit the amendments with due notice on why the delay. In this scenario, is the resolutions adopted by the society legally binding on the owners without Registrars approval (see point 6 for the latest resolution which is completely against the law)?

(Reference - Alteration of memorandum of association: Section 9 of the Karnataka Societies Registration Act states that the changes should be filed with the Registrar within 30 days along with a fee of Rs.20.The order of Registrar refusing to register amendment is appealable in the court of law

Every change in the memorandum of association approved under sub-section (1) shall be filed with the Registrar within thirty days from the date of making thereof and the Registrar may if he is satisfied that the change is in accordance with the provisions of this Act and the rules made thereunder register such change. Such change shall not have effect until it has been so registered)

2.       A draft copy of the bye law (unsigned version) created in 2011 was circulated to the members via e-mail. However on inquiry of the registered version it was told that the signed copy is in Kannada and hence not circulated. The society is now using Apna Complex as the prime forum and I noticed that signed copy of the Bye law in both English and Kannada was available. However this is not the circulated version.

3.       Corpus fund: Currently the society is collecting corpus fund of Rs.10,000 by simply passing a resolution in the AGM. There is no mention of corpus fund in the registered bye-law although there are some provisions to collect funds for the welfare of the society. However specific use of this fund has not been well defined in writing. The association has also come up with a penalty of Rs.50 for defaulters. But none of these resolutions have been filed with the Registrar and consequently no approvals for the amendments were obtained.

4.       When I approached the President to provide an explanation for not filing the amendments or audit reports with the Registrar for over 3 years, he said they are taking actions to file everything in the coming weeks. Though no such actions have been taken till now. Also the audit reports for the previous years were submitted cumulatively than on an annual basis. Explanation for larger funds is not clear in the audit reports which question the authenticity of the reports.

5.       On raising the concerns above, I was asked to pay the Corpus fund than raise such questions. When I requested the association to serve a legal notice for the same, they have remained silent (for the obvious reason that it is null and void without any approvals?). Nevertheless they have gone further and conducted an emergency AGM on 31^st May and have sent a notice (not a legal one) to all the defaulters threatening to discontinue the power back-up on failing to pay the corpus fund.

6.       I remitted the amount of Rs.10,000 which I am not obliged to accept. On protest, I am taking the legal process for the funds already mobilised and the nature of funds pending as well as proper approval of the registrar for both amendments as well as the audited accounts. Since I have already paid the maintenance fee for which I am entitled for the entire service.

Please advise what sort of legal action I can take. Any guidance on the appropriate lawyers who handle this in Bangalore will be of great help.  

 Thanks, Keerthi