2026CooperativeHigh CourtLatestLegal

Disqualification of Managing Committee for Ignoring Requisition of Special GBM

Disqualification for failure to convene Meeting as per requisition of members of the housing society

In 2013, the developer was appointed for redevelopment of the housing society and in 2014, MoU was executed.   In December, 2021, the Project Management Consultant was appointed.

Thereafter, the society had terminated the appointment of developer and invited fresh tenders for new developer.

Four bids were received in response to the advertisement issued in February 2024.

On 6 October 2024, a requisition was sent by 29 members for convening a Special General Body Meeting of the society for three agenda items of (i) appointing and forming a Tower Committee, (ii) appointing a new PMC and (iii) issuance of a fresh tender. The Managing Committee adopted a resolution in meeting of 13 October 2024 to proceed ahead with redevelopment with the two developers (Arkade and Runwal) by issuing them notices rather than going for fresh bidding. The Managing Committee accordingly issued notice for Special General Body Meeting on 15 November 2024 and agenda item-2 was for appointment of a developer. The Managing Committee however did take cognizance of the requisition dated 6 October 2024 and decided to add all the three items in a proposed meeting scheduled to be held on 1 December 2024. 6) In the meeting held on 1 December 2024, a Resolution was adopted by the majority for selecting M s. Arkade Developers for / carrying out the redevelopment process. The three items in the requisition made vide letter dated 6 October 2024 were put to vote and 72 members voted against the said three items.

Before issuing notice dated 5 January 2026, the Managing Committee was already in receipt of requisition dated 31 December 2025. Unlike its previous action of adding the agenda items in the requisition in the meeting to be held on 11 January 2026, this time the Managing Committee totally ignored the requisition dated 31 December 2025 and decided to push ahead the SGBM on 11 January 2026 only on the agenda for conduct of voting. Accordingly, the SGBM was held on 11 January 2026 and by majority of 64 votes against 55 votes, option no.1 for residential plus commercial development was shown to have been passed by majority.

Under the provisions of sub-section (2) of Section 76, the Registrar can exercise powers of disqualification of members of the Managing Committee for failure to conduct meeting after receipt of requisition under Section 76(1). Section 76 of the MCS Act.

Thus, under Bye-law 98, once requisition for Special General Body Meeting is received, no other business can be included in the notice or can be transacted in the SGBM than the one for which the requisition is made. However, in the meeting dated 1 December 2024, the Managing Committee merely added the three Agenda items of requisition dated 6 October 2024 instead of conducting Special General Body Meeting separately qua the requisitioned items. In respect of the second requisition made on 31 December 2025, the Managing Committee did not even include any of the seven Agenda items in the requisition in the notice issued on 5 January 2026. In my view, therefore the disqualification of the Petitioners in the facts and circumstances of the present case was clearly warranted.

Leave a Reply

Your email address will not be published. Required fields are marked *

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“LD”), and is a resource for your informational and educational purposes only.

No Warranty: LD does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. LD assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: LD does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. LD is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about LD, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between LD and you.