• Spending society funds on private property

I have a bungalow in a gated bungalow housing cooperative society in Kasara, Maharashtra. The plots with the 7/12 extract are in the names of the individual plot owners. A cooperative housing society has been formed for maintenance of common amenities like clubhouse, street lighting, etc. The builder constructed the border fences on the plot of the bungalow owners. The society wants to repair these fences. 

1. Since the border fences are on the private land of the bungalow owners can the society money be spent to repair them?
2.	Even if a resolution is approved in the AGM, if any one members contests this in the court of law, will it stand scrutiny?
3.	We are effectively spending society’s money not on society property but on private property of an individual owner. Is this acceptable practice? 

Regards
Rohit
Asked 3 years ago in Property Law
Religion: Hindu

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6 Answers

1. Yes, since this common boundary so common fund can be used. 

2. Court doesn't not entertain cooperative society dispute in the first place.  You will have to approach Registrar first. 

3. This is common property,  not private one if ita an outer common boundary wall.  If it's inside additional fences then society fund can not be used. 

Devajyoti Barman
Advocate, Kolkata
23345 Answers
522 Consultations

  1. Collective funds cannot be spent for preservation of private property.
  2. Any resolution to that effect will be invalid and unenforceable.
  3. Such practice amounts criminal misappropriation of public funds. It is open to challenge in Court. Even a criminal complaint can be filed against the society. If any such resolution is passed, the resolution itself is proof of misuse of public funds.

Ravi Shinde
Advocate, Hyderabad
4462 Answers
42 Consultations

1) society funds cannot be used to repair private fences 

 

2) it would not stand judicial scrutiny 

 

3) it is not acceptable practice 

Ajay Sethi
Advocate, Mumbai
97573 Answers
7898 Consultations

Dear Sir,

1. Society’s funds cannot be used for the repair of private fences/ Property. 

2. Any such resolution will not stand judicial scrutiny

3. It is not acceptable by practice. It can be challenged in court on the ground of misappropriation.

Thank you 

  • For further assistance, you can book a consultation with me. 
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Anik Miu
Advocate, Bangalore
10407 Answers
121 Consultations

1. The corpus funds contributed by the members of the society are available with the society and this fund is meant for spending for such capital expenses, hence the society can very well spend for these expenses.l 

2. Once the resolution is passed in the annual meeting or emergency meeting, if the same was passed by majority of members the agitating member cannot succeed in court of law because he is bound by the bylaws and form his own laws on the public funds especially over the matter which has been decided by the majority members. 

3. The society funds are to be spent on society's common properties alone and cannot be utilised for individuals' properties. 

T Kalaiselvan
Advocate, Vellore
87775 Answers
2362 Consultations

1.  Unless a resolution with required quorum is passed in AGM this cannot be done.

2.  The bye-laws have to be perused to see if this can be done in the first place or not.

 

Ashish Davessar
Advocate, Jaipur
30814 Answers
974 Consultations

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