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Housing Society – Resolution of General Body to levy compulsory charges on members for cultural activities – Legal

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Housing Society – Resolution for compulsory charges for cultural activities – Bye-law 148(b)(iii) provides for allocation of profit to a “Common Welfare Fund” for the objects in Bye-Law No.5(d).

By the resolution dated 11.11.2006 passed in the Annual General Meeting of the respondent no.1 Housing Society for levy of mandatory charges for expenses of cultural activities.

Bye-Law No.148 of the Model Bye-Laws of the Cooperative Housing Society provides for appropriation of profits and as per Bye-law No.148(b)(iii) the profit is to be allocated to  the Common Welfare Fund for the objects in Bye-law No.5(d).

The petitioner – one member out of 100 members of the housing society – alone had challenged the resolution.

Dated 6.3.2019 of the Cooperative Court, Thane, below Exhibit 5 in Dispute as confirmed by the order dated 10.6.2019 of the Cooperative Appellate Court, Mumbai.

HELD that Housing Society is different from other societies and one of the objects of the housing society is to undertake social, cultural or recreational activities.   Thus, one of the objects of the Housing Society is to raise funds to undertake Social, Cultural or recreational activities itself.   Therefore, levy of cultural charges is legal.

Judgment dated 25.9.2023 in W.P.No.11870 of 2019 of Mrs. Jyoti Sharadchandra Lohokare Vs. The Managing Committee, Shreeji Villege CHS Ltd and Others.

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