General Body can decide that a particular activity though not prohibited is not in the interests of all members

By Staff Reporter

The Fact:

By instituting Dispute No.52 of 2014 under Section 91 of the Maharashtra Co-operative Societies Act, 1960 (for short “MCS Act”), the Petitioner, who is member of the Respondent Society and residing in Flat No 45 situated on the 4th Floor of the building, challenged the Resolutions passed by the Respondent-Society in the Annual General Meeting dated 10th August, 2008, 11th August, 2013, 28th September, 2014 and 2nd August, 2015 and the Special General Body Meeting of 27th April, 2014 and 6th July, 2014 interalia resolving that the commercial activities of keeping foreign paying guests for short period under the “Incredible India Bed and Breakfast” scheme should not be allowed in the Society.

The Judgement:

Under Section 95(4) of MCS Act, the Co-operative Court is empowered to make such interlocutory orders pending the final decision as may appear to be just and convenient. The contention of Petitioner was that he was keeping paying guests since the year 2017 and pending the final disposal of the Dispute, he should not be obstructed from continuing the said activity. Under Section 72 of MCS Act, the final authority of every society vests in the general body of the members subject to the provisions of the Act and the Rules. It is the General Body which has the power to take all steps as deemed effective for proper administration of the Society. Unless it is prima facie demonstrated that the Resolutions passed by the Society are contrary to the statutory provisions and thus illegal, the implementation of the Resolutions at the hands of the Society cannot be stayed.

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