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Model Byelaws – Adopt or Not to Adopt

Byelaws are regulations governing the internal management of a Housing Society. Model Byelaws are the ones approved by the Registering Authority containing almost all conceivable situations affecting the governance of a Housing Society.  The New Model Byelaws applicable to the Housing Societies (Flat Owners/Plot Purchased Type) in the State of Maharashtra have been approved by the Commissioner for Co-operation, Maharashtra and Registrar, Co-operative Societies, Pune.

Byelaws, essentially, are regulations governing the internal management of a society.  Adopting Model Byelaws is definitely in the interest of Housing Societies, the primary reason being their uniformity and versatility. However, Byelaws do not have statutory (legal) force.  It is for every Housing Society to decide as to what is in its interest.  Though Registrar or State Government can issue direction in public interest, they cannot direct or force to amend the already registered Byelaws.  Each Housing Society has a right to have its own Byelaws, provided they are in accordance with the Act, Rules and in corporate interest of the Housing Society.  

Strictly legally speaking though it is not mandatory for a Housing Society to adopt the latest Model Byelaws, 2009, but for Transparent Management of the affairs of Housing Society and less confrontation among the Members it is ethically mandatory. It is in the interest of Members of Housing Society to adopt latest Model Byelaws, 2009 as instructed by the Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra.

Model Byelaws guide the Managing Committee of Housing Society to run its affairs smoothly and on right track, Model Byelaws gives proper guidelines on day-to-day functioning of Housing Society such as Collection of Monthly Outgoings, Transfer / Transition of Shares and flat, Powers of Managing Committee, Rights and Duties of Members of the Managing Committee of Housing Society etc.

Every Housing Society is an Autonomous Body and has right to amend any Byelaws subject to provisions of the MCS Act-1960 and MCS Rules 1961 and to suit their needs for making their working style more effective.

The Housing Federation has published comprehensive Booklets on "Adoption of Model Byelaws" and "Amendment to any Provision of Byelaw." They give complete procedure as well as Specimen of Resolutions and Schedules which are required to be submitted to the Registering Authority for his approval within two months from the date of approval at the General Body Meeting. As per procedure laid down in Rule 12 of the MCS Rules 1961, the Model Byelaws or any amendments thereto, the Housing Society will have to adopt Model Byelaws in its General Meeting after giving due notice to the Members as per Byelaws.

The Registering authority has to approve the adoption or amendment proposal or reject it within two months from the date of its receipt by the Registering Authority. It shall be deemed to have been approved or registered, if not approved by the Registering Authority within two months.

The Byelaws become applicable to the Housing Society only on approval of the same by the Registering Authority. However, it is the responsibility of Housing Society during the intervening period to ascertain about the approval of Model Byelaws and act accordingly. They should act according to old Byelaws as long as duly approved amendment is not received from Registrar. However any dispute between member and Housing Society is to be dealt with by the Registering Authority on the basis of Model Byelaws-2009.

It should be noted that the Model Byelaws should be adopted as they are and without any amendments or changes therein. This enables the Registering Authority to expedite more the work of approval of Model Byelaws 2009. However, Housing Society is free to subsequently amend any undesirable, unworkable or irritating Byelaw and submit the same to the Registering Authority but only after approval of Model Byelaws 2009 by the Registering Authority and after completion of 6 months period from the date of approval of Model Byelaws 2009 by the General Body. As per provisions of Byelaws no Resolution of the Managing Committee or General Body meeting can be changed within 6 months.

 

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