The cases of appointment of administrators in co-operative housing societies are increasing.Generally the Deputy/Assistant Registrar of co-operative societies (“the Registrar”) appoints an administrator upon complaint(s) from member(s) of the society, if he finds that it is a fit case to expell the managing committee of the society. Such an action, may invite mixed reactions from the concerned society depending upon the facts of the case and depending upon the perception of the members about the manner of management of the affairs of the society by the expelled committee. The powers enabling the Registrar to expell a committee are to be exercised only sparingly and to bring erring societies and their committees to book : M. R. Bhuibhar vs. Divisional Joint Registrar : 1982 Mh.L.J. 368. Such powers have to be exercised by the Registrar after giving the committee an opportunity of being heard and an opportunity of stating objections and by application of principles of natural justice.
Wide powers :
Section 78 of the MCS Act, 1960 inter alia equips the Registrar with such powers to be exercised upon the specified grounds including when the managing committee has committed defaults or which has been found negligent in performance of duties or which has committed an act prejudicial to interests of the society or its members or which has willfully disobeyed directions of co-operative authorities, or which is not discharging its functions properly and diligently or the business of the society has come to or is likely to come to a stand still.
When the committee is removed, the Registrar has two options : i. to appoint 3 or more society members, who should not be the members of the committee being removed, or ii. to appoint administrator(s) in place of the expelled committee. However, in practice the first option is hardly exercised. On the contrary the same person is appointed as an administrator of more than one society.
Remuneration :
Remuneration payable to an administrator is to be fixed by the Registrar. The Act and the Rules are silent about the basis for or methodology of fixing such remuneration. On equity and reasonableness such remuneration has to be with reference to the nature and quantum of functions performed by the administrator. In some cases, the administrator, in turn, appoints a private individual and remotely functions through such private appointee. The bank account of the society is operated by the administrator himself. The administrator or the private appointee, as the case may be, does not devote more time for managing the affairs of the society. Under the circumstances, the remuneration should be based on these aspects. The quantum of time spent by the administrator or his appointee may be noted on day to day basis. The society or its member(s) may keep such records if they want to take up the issue of reasonableness of remuneration at a later date. In fact, the entire practice of appointing such private persons by the administrator and remuneration to him is questionable under the law.
Tenure of administrator :
The law provides for appointment inter alia of the administrator for a maximum period of 6 months which may be extended for a further maximum of 3 months. However, suffice to emphasize that such an extension has to be for the reasons to be recorded in writing and under proper intimations to the society. All powers whether judicial, quasi judicial or administrative are to be exercised objectively and reasonably.
The spirit of the law is that the administrator should set the things right and hold the elections at the earliest. The administrator is like a guest to manage the affairs of the society on adhoc basis till new committee is constituted by due process of law. Problems may arise when the guest overstays and beyond the need.
Powers and Functions of administrator :
Being an adhoc appointee, the powers of an administrator are quite restricted. Legally speaking, the administrator replaces the managing committee and therefore the powers of an administrator, under no circumstances, can exceed the powers of the managing committee.
Recently in the matter of Palm Towers Co-operative Housing Society Ltd., Hon’ble Bombay High Court has inter alia ruled that the administrator is appointed for the purpose of holding elections and to constitute a proper managing committee. The Administrator is not ordinarily required nor expected to take policy decisions.Administrator has no power to enroll the new members; he has only power to organise elections in accordance with the law and the bye-laws of the society : K. Shantaraj v/s. M. L. Nagaraja, AIR-1995 SC 2925; Joint Registrar of Co-operative Societies, Kerala v/s. T. A. Kuttappan and Ors., (2000) 6 SCC 127. Section 32(4) of the Kerala Co-operative Societies Act, 1969 is par-materia with section 78(2) of the MCS Act, 1960.
Supremacy of the General Body continues :
An administrator replaces the committee and therefore, the supremacy of the general body continues. There is no provision in the Act, Rules or the byelaws prohibiting holding of general body meetings during continuance of administrator. And very rightly so, because upon appointment of administrator the functions and affairs of the society do not come to a standstill and the powers which are reserved and vested in general body can be exercised by general body only. The decision of general body, subject to the framework of the law, would be binding upon the administrator being in place of the committee.
Administrator to set example of good governance :
Since, an administrator is appointed in the place of a delinquent committee, manner of functioning of administrator should be exemplary so that the society, its members and incoming committee can observe good governance by functioning objectively and transparently. As part of the minimum requirement of such good governance the administrator should disclose to members complete details of income and expenditure and receipts and payments for each month. Similarly decisions taken by the administrator from time to time should be communicated to the members with reasons.
Office of the Registrar is a public authority covered by the RTI Act :
There can be instances when the society or its member(s) are not satisfied about exercise of powers by the Registrar in relation to removal of the committee, appointment of administrator, continuance of administrator, functioning of administrator, remuneration to administrator etc. In all such or similar circumstances, one may use provisions of the Right to Information Act, 2005 as the office of the Registrar of Co-operative Societies and all its organs are a public authority subject to the provisions of the said Act.
Author: CA Tarun Ghia, Email: ghiatarun@rediffmail.com
Palm Towers Cooperative Housing Society Bombay high court can some one give me case number or citation.
Our society is under Administrator. We have required a membership I have sent application to the Society we required a membership. After that Society(Administrator) was sent one letter to me. Please regarding membership you will coordinate with registrar.
what is the process to get the membership?
Dear Sir, I am one of the member of the Cooprative Housing Society in Andheri. Then existing MC, did not completed account..neither published the Annula report nor conducted AGM. Audits also not done for about 5+ years. Members approcahed Dy Registerar. Dy Reg. apointed Adminstrator, about 2 years before.Administrator did not do anything on the past account and also not appointed Auditor. Now Administrator has hold the election. Few commitee members objected on the conducting the election as Previous accounts and Audit was not takenup or odered by Adminstrator. Election was taken and now old commitee is back in power. With this status , need calrification on the follwing Quesrries
1) Can admimstrator conduct the election , without doing due deligince on the past transanctions?
2) Can Administratoe hand over the responsibilty to new commitee without completing accounting and Audit for the same?
3) With reference to compliant to Dy Register to appoint the Administrator, Is it not the duty of appointed Administrator to clear all the Qs raised in the Compliant letter?
4) Is it not the responsibility to Preapare the Report and submitt it to Dy Reg nad Society , with reference to Compliant lodged nad that basis Administrator is appointed?
Pl help us by providing the guidance / clarity on the same
A administrator is there in our society since over 1 year, one body from his side is coming to see to affairs of the society since last 3 months, I want to sell my flat since last 1 month he is dodging me ,cal me to his office but he is not present, does not accept my calls, sometimes he says administrator has changed and not giving me his address too. Some one plz help, I may loose my Buyer. S A Merchant @ 9819058793.
file a writ against the administrator – cooperative department
Dear Sir, Does the Admin Officer appointed by the Registrar for Dissolution Society have the right to enter the member registration in the I&J Register? I exchanged flats with my friend (1602 , 1802) and, followed the proper procedure, submitted a letter to the builder and a copy to the Society. The builder then exchanged our flat on the basis of request / exchange letter and gave us possession according to the exchange request letter. After a few months, our society was rejected and the registrar appointed an administrative officer in our society. I saw the designated officer giving my maintenance bill on my old flat no. while we had possession letters on the exchanged flat. Then I noticed that the previous society had forgotten the registration of our exchange flat in J & I registered. To correct this I contacted the admin and informed him by letter but the admin refused to enter our exchanged flat in the J & I register and told me that this work would be done through the newly formed society. … We request you to tell me about the admin duty .. I want to know whether the admin has the right to write to the I&J registered or not? Because, my name is missing in J&J Registered.
Missing name from J & I registered is big issues?
pls advice and guide.
Can I vote in the next society election or not?
..if I can vote then what flat number
Not being registered can be a big reason؟
Please help me out on above matter.
Thanks and regards
Shums
Want to read ther reply please
What is the fees of an Administrator appointed by the Registrar in Maharashtra?
Can administrator appoint new staff in aided school
Whether administrator have power to hand over possession of flat to a member
What are the functions of the Administrative Board, consisting of three members of a CHS. The managing committee has been dissolved and Administrative board appointed as per order of Dy.Registrar of Co-op society and ratified by the General Body.
Interested to see question answer and also the cases
Can an administrator appointed by RCS of a co op bank reinstate/ reappoint an employee of bank who is acquitted by honble court with full benefits (arrears of suspension period).
lagata hai TAX Guru So Gaya. there is no reply to any query.
can a adminstrator remove a tenant of my flat is no noc is obtained from her
1) What are the disadvantages of an appointment of Administrator on co-operative society?
2) What is minimum and maximum remmuneration to be paid to the Administrator by the society?
Thanking you.
With regards
Sudhir Chandanshive.
1)what are the disadvantages of appointing a Administrator on a co-operative society?
2) What is the remmuneration is to be paid to the Administator by the society?
3) What is the extended period of administrator?
I would like to know whether the Administrator has authority to appoint a member to act his advisor. This member has filed certain cases against Society with RCS and Court. Society had also filed against this member for certain dues which he is refused to pay. The responnsibilities assigned to the advisor is to follow-up this and other cases. This is case of CONFLICT OF INTEREST. How this advisor will perform as he will be fighting on behalf of Society and also defending his case. Please advise. thanks
R.K. Gulati, r.k_gulati@yahoo.com
Can a society member be a administrator? Before this he was a secretory of the same society.
Can he declare election?
In our society Administrators was appointed by Registrar since 2008. After a completion of period of one year elections were conducted and new committee elected. However the committee refused to take charge of records of the society because the Financial Accounts were not completed by Administrator. The Registrar had appointed second Administrator he had also completed tenure without doing work. Now “ADMINISTRATIVE BOARD” consisting of 3 members of the society has been appointed by the registrar. These all are the notorious members who had created problems for society. We members wants to update our Financial Accounts since 1993. How we can get our records updated? what step to be taken to remove Administrative Board except election?
dear sir,
need to check if the administrator has the power to open the bank account and operate the same whereas the appointment letter talks about the election duty only
A society of 55 members was allotted land by Collector at concessional rates to build a residential complex. Once the building was completed, only 10 flats were paid for by the members and the remaining members either absconded or resigned. Since the 10 members who paid for the flats could not run the society an administrator was appointed in 2003. This administrator issued an NOC to the builder to induct 35 new members in place of 35 members who had resigned. Builder then went on to sell 35 flats to new buyers. The society was resurrected after the administrator’s tenure ended. The building now have about 45 residents , out of which only 10 are original members. Society is refusing to propose the names of the 35 new members on the ground that the sale 05 35 flats were illegal due to the following
1. Administrator does not have the power to issue NOC
2. Because of (1), builder has no right to sell
What is the legal standing of the tenants who purchased flats based on the NOC given by the Administrator?
A reply will be most appreciated.
Dear Sir,
Could you please explain, whether Administrator appointed by Registrar can spend exorbitent expenses like Advocate fees of Rs. 1,30,000/- for one case of recovery u/s 101 of the society and more then 25000/- various expenses without the consent of general members of the society.
Sir,
Could you also clarify whether the administrator has the authority to provide change of user (from residential to commercial), despite objection from other members of the society.
Regards
Dear Sir,
I am one of the aggrieved member of a Cooperative Society viz: Sri Lalita CHS, Gokhale Road, Vile Parle East, Mumbai – 57. Administrator has been appointed by Registrar since 05.01.2010. Management Committe (MC)is dissolved and no fresh attempts have been made so far. A Redevelopment Sub Committee – appointed by Erstwhile MC is sending notices and negotiating with Builder for Redevelopment. Out of 30 members, 9 are against the redevelopment. Is redevelopment committee Chaired by Associate Member, along with Administrator authorized to deal with Builder for Redevelopment?? Does the redevelopment committee have the locus standi when the MC is no more there. No MC-20 had been filed by earlier MC also. No 75% majority for redevelopment is there? Are such dealing valid or void ab initio ? please reply. we fear the Builder in collusion with Politicians – local authorities etc may use Money & Muscle Power to evict the aggrieved members. Please guide and you may bring this to the notice of the Appropriate Authorities for protecting us.. Please.
srinivasan n