Can the majority in the society pass such a bye law

I am a member of Corperative Housing Society and have given my flat on "Leave and License" for 11 months. The rent per month is Rs.10,500. I have the following queries:

  1. In its form of application for permission to give on "Leave and License", the following unterking is sought in addition to the usual stipulations as per bye laws. I undertake to pay the society a sum of Rs.10,000 per month as compensation for failure to remove the licensee.
  2. Can the majority in the society pass such a bye law requiring the member who sublects his flat to give the aforementioned undertaking.
Legal consultancy

What is the meaning of paying comensation to society?

The question is a bundle of confusion.

Please reproduce hereunder a copy of the society resolution supporting such a compensation.



Most of the members of MC are ignorant of law. The form of application is not worth the paper on which it is printed.


This is indeed strange!  How can the society charge you in such a manner.

In fact, your licensee not moving out is a loss to you. I think at most they can carry on charging you the regular nonocupation charge.


I  am not aware that any such resolution has been passed.My simple query is whether such resolution can be passed and whether such resolution is consistent with the Co-op Society Act and the Bye-laws.To reproduce exact wordings-"I agree and undertake to pay to society a sum of Rs'10000/- per month as compensation for failure to remove the LIcensee. I alone shall be liable and responsible to evict the licensee"

Legal consultancy

You are requested to seek said resoution copy from the said society office in wrtting,failing which said Rs.10,000/-need not to be paid in case of said default.

Whether said resolution is consistent with the M.C.S.Act,1960 or not,can not be answered unless and untill the copy of the said resolution is reproduced hereunder.

As a bonafide member of the said society,you must be aware as to whether such resolution is existing or not ?

Ignorance is bliss in this country resulting in such quaries,which can easily be tackled on  society office level.

Please remeber that as a bonafide society member and consumer,you have certain rights,which need to be asserted.


I am doubtful about such resolution. As what loss society will suffer even if licencee does not vacate the sublet unit after the expiry of the leave and licence period if licencee undertakes to pay maintaince charges.There cannot be such exorbitant compensation .

Legal consultancy

If no such resolution is existing,then the whole said society exercise is not only unlawful but a criminal also.

Make it sure and make an application as advised above.

Presumptions does not work.


You may challange the resolution. It is inconsistent with the bye laws. Y give notice to the secretary and chairman challanging the resolution and same be forwared to the Registrar of the society. 


Adv. Sandeep Naik(Advocate - Mumbai High court)

Mob: 9967056980 

Email :


What are you talking about? When dumb fools are managing the society, any resolution can be passed. I know a case where the Dy.Registrar said that he had passed an illegal order and now the aggrieved party can go to court to get it annulled but before doing any such thing he will have to pay 50% of the maintenance charge demanded by the society. Whether the bill is legal or illegal is immaterial. There is huge shortage of housing. In old bye laws, no member was allowed to buy more than one flat in the same society without specific permission or General Body and/or Registrar. It has been done away with in the new bye laws? Why? Creating monopoly of rich and neo-rich. It was done at the best of the builders lobby. When I wrote to Mantralaya why it has been done when there is acute shortage of housing and what was the necessity of changing the buye laws, there is defeaning silence. No reply. 
When there is Adarsh, why should there be reply?




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