LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Sayed Maqsood Ahmed   13 September 2023

appointment of legal advisor in a cooperative housing society

dear learned advocates

can the MC of a housing society appoint a legal advisor paying him Rs.10000 pm as fees in addition to other fees case by case.

cam the mc without the approval of the AGM appoint the legal advisor with retrospective effect

your quick response appreciated.

Best regards


 5 Replies

T. Kalaiselvan, Advocate (Advocate)     14 September 2023

The MC can decide about engaging a lawyer to defend the interests of the society/association, there is no legal infirmity or embargo in it.

However a resolution has to be passed by the MC members  to approve this proposal.

Dr. J C Vashista (Advocate )     14 September 2023

The MC of the Society enjoys all the powers vested in AGM and can appoint a lawyer, which has to be submitted/ approved in ensuing (next) meeting of members.

Sayed Maqsood Ahmed   14 September 2023

Many thanks sir for your valuable comments. 

There is already a legal advisor on the MC team who is taking care of the legal matters of the society for free of charge. 

Can still the MC appoint a new legal advisor  by paying him fixed Rs .10000 pm and also paying additional charges case by case thus causing financial burden on society 

Your legal inputs appreciated highly

Best regards 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     14 September 2023

Are you a co-operative housing society in Maharashtra? If so the position is like this. On the question of appointment of a legal advisor or even meeting legal expenses the Act, the Rules and the Model byelaws are silent. As regards expenditure on repairs there is a Repairs Fund.. The Managing committee can approve expenditure on repairs up to Rs. 1 lakh at a time. For higher expenditures approval of the General Body is necessary. If the Society has to fight a case there is no provision of funds under the Model Byelaws. In our Society I created a Legal Fund. Member have to contribute at a fixed rate to the fund. All penalties and penal interest levied on members will be crdited to the Fund. Legal expenditures are met from the fund. 

A society has to meet legal expenditures when it becomes necessary. Normally the Societies meet legal expenditures form the funds available with them or even post-facto collect from the members. Whether your Society should commit themselves to legal expenditure to the extent stated by you would depend on the size and finances of the Society and legal cases that your society has to commit itself. Whether the Managing Committee can decide or whether approval of the General Meeting is necessary is also debatable.

You make a complaint to the Registrar or go to the co-operatve court. Let the court decide.

Sudhir Kumar, Advocate (Advocate)     15 September 2023

read society constituion

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register