Members can’t refuse society’s resolution

A member of a co-operative housing society cannot refuse to act upon a resolution passed by an overwhelming majority, the Bombay high court (HC) held on Monday.

The court was hearing a plea filed by Vardhaman Developers, the firm appointed by the Andheri Krupa Prasad Co-operative Housing Society to redevelop their four buildings on April 6, 2008.
According to the terms of the agreement between the housing society and the developer, the members were to hand over their premises, once the developer got the plans sanctioned and obtained the permissions from the civic body.

While 57 members shifted to the transit accommodation, 19 refused to hand over the possession of their 17 flats, even after signing consent affidavits to abide by the terms of the development agreement, after which the developer moved court. Justice RD Dhanuka said a resolution passed by an overwhelming majority is binding on all members and a few dissenting members cannot stall the redevelopment of the society.

Rejecting the dissenters’ objections, the judge said the disapproval of a dissenting minority cannot be the basis to negate a resolution passed by the general body, unless it is shown to be a product of fraud, misrepresentation or opposed to some statutory prohibition.

“The minuscule non co-operative members cannot stall the redevelopment project on flimsy grounds,” justice Dhanuka said. The court has appointed a court receiver and directed him to implement the order in four weeks.

Kanchan Chaudhari, Hindustan Times, Mumbai


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