Adv. R. P. Rathod
emphasis that it is very important for every
Managing Committee member to file the mandatory M-20 Bond as
stipulated in the Maharashtra
Co-operative Societies Act 1960, failing which he shall deemed to have vacated his office as a
member of the Managing Committee.
Adv. R. P. Rathod says that in such a classic example “A
resident of Rachna Co-operative Housing Society at Hill Road in Bandra had
accused some members of the Managing Committee
of resorting to forgery to strike an Rs 100 crore deal for redevelopment
rights.”
Mr. Mohammed Musaddique Shaikh, the
resident of the said society, alleged that the members resorted to forgery fearing
the deal would fall through as the papers of the society were
not in order.
Adv. R. P. Rathod further adds that in this matter “After the
Managing Committee members entered
into an agreement with the builder for redevelopment in December
2006, they realized that they had not filed the mandatory M-20 Bonds.”
When a Managing
Committee is elected, it is mandatory for them to execute the
required M-20 Bond and file a copy of
the same before the Office of the Registrar of Societies.
This Bond pertains to accepting responsibility
for wrong-doing, if any, during their tenure. In absence of the mandatory M-20 bonds,
the society cannot enter into a deal to redevelop the property.
In this Case “The election
of the society took place on May 25, 2004. The committee was constituted on the
same day. The required M-20 bonds
ought to have been placed on record by committee
members on or before June 9, 2004, which was not done.”
Adv. R. P. Rathod says that, “Members not having filed M-20 bonds within
15 days of being elected cease to be
part of the Managing Committee. A further consequences of the same is that
all documents signed
when they have deemed to have been ceased to be Managing Committee members are illegal
and cannot be given effect to proceed in any matter pertaining to the society’s
day to day affairs.”
“When residents of the aforesaid society
insisted on seeing copies of the M-20 bonds,
the accused purchased stamp papers
and prepared back-dated M-20 Bonds,”
as alleged by Mr. Shaikh, the complainant in the matter. Another resident Mr. S
B Naik, moved the HC alleging fraud in the society.
The court asked the additional controller of stamps (Mumbai) to investigate.
The investigation
revealed that the dates on the M-20 bonds Stamp papers were forged. Subsequent
to the said findings a complaint to that effect was registered
before the Bandra police station under Sections
465, 467 and 471 of the IPC.
This is just an example which manifest that
the required bond must be executed by
each member of the Managing
Committee in Form M-20 on a Stamp Paper
within the stipulated time frame. Failure to do so, will invite penal
consequences concludes Adv. R. P. Rathod.
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