Jaganath Wala (Sr Manager) 05 April 2013

Cooperative housing society

Dear Sirs,

I request your expert advice and professional opinion for the following:

Our Society has entered in to an agreement with M/s XXX Cable provider who has been exclusively allowed to provide Cable TV services. Also there has been passed a resolution in the General Body in the year 1996, gist of which is:

‘The Society will provide cable TV services from XXX Cable provider. The monthly charges are to be paid along with the maintenance charges. Any one who does not pay on tile will have to pay interest on the outstanding payment. Any one who is late in paying the same will be declared a “defaulter”.

My queries:

1) Can a Cooperative Housing Society grant exclusive rights to ONE Cable TV provider?

2) Can the monthly subscripttion for Cable TV be included in the list of maintenance charges?

3) Can the Society charge interest for a service which is provided by an outside Agency?

4) Can the individual who is late in payment of ONLY cable TV charges be termed as a “defaulter”?

An important issue is that our Society is on Collector’s land which was purchased in 1964 by paying an ‘occupancy price’. One of the conditions in the Agreement stipulates that our Society or any individual member cannot mortgage or sell or lease any block or part of the land without the prior permission of the Collector.

I will be highly obliged if you could provide me with your expert advice and professional opinion.

Thanks to all in advance.

Reply Follow

6 Replies

adv. rajeev ( rajoo ) (practicing advocate) 05 April 2013

When it is passed in the general body meeting , you have to obey it.

Sudhir Kumar, Advocate (Advocate) 05 April 2013

please see societies constitution.

Jaganath Wala (Sr Manager) 06 April 2013

Sir, thanks

Jaganath Wala (Sr Manager) 06 April 2013

Sir,

Thanks for your reply. I am told that if any resolution which is ultra vires the MCS Act or Society Model Bye laws or even the Law of the land even if passed unanimously by the General Body is 'null and void'. Here does not MRTP Act come in the picture as there is restriction on a member's choice of provider of cable tv services.

Please note that I am just putting forth my thoughts and do want to get a crystal clear picture.

OK as it is always said that whatever is passed in the General Body is mandatory and every member is bound to obey and abide by the same. But is it not necessary for such an important resolution to be included in the adopted Bye Laws of the Society to make it mandatory. Because a Cooperative Housing Society is transgressing from its basic purpose of providing residential services and opting for a business venture of providing Cable TV services - since it is retaining a part of the charges collected by the Society along with the monthly maintenance charges.

I once again thank you and trust you will continue to help me.

Jaganath Wala (Sr Manager) 09 April 2013

Sir, I have added some additional information. Please advise me at the earliest and oblige. Thanks.

Tanu Yogendra Oza (Founder) 16 December 2013

Its illegal. Even though the general body of CHS have passed it, its not legal. According to the rules formed by Competition Commission of India, its against rules to restrict competition. Here the society is controlling the competition and the society can't use its exclusive position to restrict the competition. Any member can file a complaint in CCI and CCI can direct the society to remove such illegal clause.