Coop Registration: Progress So Far and What Next by the MC

 There was only one review comment received in the google forms and response spreadsheet (and that too mine only produced while checking whether the system set up was working properly).

Since there were ZERO review comments received even after giving the extension requested and even waiting further to this day (19 Dec 2021 ), 

you may like to proceed with adopting the Bye laws formally by calling a meeting ( physical/electronic).

You may like to take detailed  guidance from  the blog created for the purpose.

• IRAC Legal Analysis of Current RWA Apartment Owne...
• High Court of Karnataka Order and Regulatory autho...
• Applicable Acts & Rules
• Application for Registration of Cooperative societies
• Sharing of Information with the Focus Interest Group
• Formalities for Registration of Cooperative in K...
• Draft Coop society Bye Laws for review
• Formalities for Registration of Coop society With ...
• Latest Karnataka HC Order
• Draft Bye laws of Coop ready for Review & Approval

​Further steps required are :

1. Formal approval of the Byel laws by the potential members. Now that the new norm is online, you may be able to take the approval in an online meeting (rather than a formal physical meeting) after the review, update and validation cycle.
2. Also negotiate and settle on a "consultant" to lubricate/smoothen the journey through the bureaucratic channels. I have identified ​one who could potentially help us through the process. He is is law student who is very knowledgeable and who has helped some to register the coop as per the relevant statutes.
3. Then his final review and filing and then wait for objections.
4. Overcoming objections and refiling.

Relevant documents are here:

1. List of owners who put in their particulars are here: https://docs.google.com/spreadsheets/d/1ZSkbKDA_8FjacuhjKfdYcKnr0Qo-97UdFuo5MgmXY2s/edit?usp=sharing
2. ​Draft Byelaws are here:   https://drive.google.com/file/d/1UQLIYACrp2RPBctLDoZSZM021baUMrav/view?usp=sharing 
3. Comments received  (only sample comments by me ) are here: https://docs.google.com/spreadsheets/d/1TvhMUhIItgoKrbAr1Cej_qmZPVXH1eS9eS3NwKlk-Vg/edit?usp=sharing​

Please feel free to ask any question/seek any clarification from me if required.

Draft Bye laws of Coop ready for Review & Approval

Draft Bye laws of Coop Society for 

Review  & Approval

1. A copy of the final draft of the above is provided here for Review & Approval: https://drive.google.com/file/d/1UQLIYACrp2RPBctLDoZSZM021baUMrav/view?usp=sharing
2. You may like to download the Draft as above  as pdf and this will facilitate you to take advantage of the Bookmarks on the left side of the window as you open it.
3. A Review/Approval form   is made available here which will facilitate automated collection of review comments from owners so that these review comments can be evaluated and incorporated in the draft in a disciplined and organised way.: (https://docs.google.com/forms/d/1c866XVRfocMEyHDr5zYYV22K8tBMcUWy3BvRe7oyKts/edit?usp=sharing)

Latest Karnataka HC Order

Latest High Court of Karnataka Order 

IN THE HIGH COURT OF KARNATAKA, BENGALURU

DATED THIS THE 9TH DAY OF NOVEMBER, 2021

BEFORE

THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT

WRIT PETITION NO.7193 OF 2021(GM-KSR)

BETWEEN:

MR. SUNIL MAADHBUSHI,

AND:

1. STATE OF KARNATAKAA

REPRESENTED BY THE REGISTRAR,

DEPARTMENT OF CO OPERATIVE SOCIETIES,

NO 1, ALI ASKER ROAD, BENGALURU 560052

https://drive.google.com/file/d/1mIlSY0s-Ed2Bbu3rtcuBsa9X04lEdnpD/view?usp=sharing

2.  The Divisiona Bench of  this Court in

W.A.Nos.932-933/1974  between A.V.VINODA &

ANOTHER Vs. STATE OF KARNATAKA BY ITS

cOMMISsIONER & SECRETARY, disposed off on

11.12.1974, has held that the Court should treat the likecases

alike and if relief is granted to a litigant it has to be

extended to a similarly circumstanced litigant as well, there being no derogatory circumstances.

In the above circumstances, this writ petition

succeeds; a Writ of Certiorari issues quashing the

impugned Registration Certificate bearing No. JNR-S455-

2015-16 dated 18.02.2016 a copy whereof is at Annexure-

ARNA Costs made easy.

Sd/

JUDGE

Formalities for Registration of Coop society With Important Highlights

 “3. Formalities for Registration- 

(1) A group of persons not less than ten persons intending to form 

a cooperative society may join together and elect a chief

promoter among themselves, and a few promoters to assist him and authorise him

to take further steps for registration of the society. Such group of persons shall

1. decide the name and area of operation of the proposed society, 
2. adopt the bye-laws of the proposed society and also resolve to authorise the chief promoter to collect the required share capital from the persons intending to become the members of the proposed society.

(2) The chief promoter shall approach the jurisdictional Registrar along with

1.  a list of persons who have joined together to form the proposed cooperative society, 
2. a copy of the proceedings of the meeting of the said group of persons containing their names, addresses and signatures, 
3. two copies of the bye-laws of the proposed society and 
4. a copy of the project report to show the proposed society has reasonable chances of success and is going to be a viable organisation.

(3) The Registrar on being satisfied that, the proposed society has reasonable

chances of success and is going to be economically viable may permit the chief

promoter to collect such amount of share capital from such number of persons

intending to become the members of the proposed society within such period as he

may specify.

(4) After getting permission from the Registrar, the chief promoter shall 

1. get a few receipts book printed in the name of the proposed society and collect the share capital from the persons intending to become the members of the proposed society.
2. He shall issue receipts to the proposed members for the amount collected with his signature under his name and designation. 
3. The money so collected shall be deposited within seven days from the date of collection, in an account opened by the chief promoter in the name of proposed society, in a scheduled or a cooperative bank.. 
4. He shall maintain a cash book, receipt book, voucher book and other accounts for the money collected and remitted to the bank. However, he shall be competent to retain such money as may be necessary and sufficient to incur incidental expenses like printing, stationery, typing, postage, etc.,

(5) After collecting the share capital to the extent permitted by the Registrar from the specified number of persons, the chief promoter shall 

1. convene a meeting of the promoters of the proposed society and place the details of 
1. the particulars of receipts and expenditure incurred and the names of the proposed members from whom share capital is collected. 
2. After getting a resolution passed in the promoters meeting, he shall submit a proposal to the Registrar for the registration of the society in the prescribed application along with 
1. five copies of the bye-laws of the proposed society and 
2. the list of proposed members with their names and addresses. 
3. If there is any change in the promoters list, it can be ratified by the registering authority.
3. The application shall be signed by each one of the applicants who is an individual and by a person duly authorised on behalf of any cooperative society which is an applicant and 
4. shall be accompanied by the prescribed fee."

Authority: KCS Rules  2013:

https://drive.google.com/file/d/1YahMN8eC8ZsIIL0NzuHsfqSg9aMioZFt/view?usp=sharing

Draft Coop society Bye Laws for review

 I am enclosing a link to a flip book version of  the Draft for Approval:

Flip  version of the ByeLaw is here: 

https://anyflip.com/sfytf/jqql/

(Change to "Enable full screen" using the button on the top second button from right.)

Errors & Omissions expected as it was all done in a hurry in 3 working days.

I will make a  downloadable pdf version which you can use for making  review comments etc. a little later. I am forwarding this ONLY to enable  an opportunity of observing the work in progress.

Formalities for Registration of Cooperative in Karnataka

 3.   Formalities  for  registration-  

(1)  A  group  of  persons  not  less  than  ten persons  intending  to  form  a  cooperative  society  may  join  together  and  elect  a  chief promoter  among  themselves,  and  a  few  promoters  to  assist  him  and  authorise  him to  take  further  steps  for  registration  of  the  society.    Such  group  of  persons  shall decide  the  name  and  area  of  operation  of  the  proposed  society,  adopt  the  bye-laws of  the  proposed  society  and  also  resolve  to  authorise  the  chief  promoter  to  collect the  required  share  capital  from  the  persons  intending  to  become  the  members  of the  proposed  society. 

(2)  The  chief  promoter  shall  approach  the  jurisdictional  Registrar  along  with  a list  of  persons  who  have  joined  together  to  form  the  proposed  cooperative  society,  a copy  of  the  proceedings  of  the  meeting  of  the  said  group  of  persons  containing their  names,  addresses  and  signatures,  two  copies  of  the  bye-laws  of  the  proposed society  and  a  copy  of  the  project  report  to  show  the  proposed  society  has reasonable  chances  of  success  and  is  going  to  be  a  viable  organisation.   

 (3)  The  Registrar  on  being  satisfied  that,  the  proposed  society  has  reasonable chances  of  success  and  is  going  to  be  economically  viable  may  permit  the  chief promoter  to  collect  such  amount  of  share  capital  from  such  number  of  persons intending  to  become  the  members of  the  proposed  society  within  such  period  as  he may  specify. 

(4)  After  getting  permission  from  the  Registrar,  the  chief  promoter  shall  get  a few  receipts  book  printed  in  the  name  of  the  proposed  society  and  collect  the  share capital  from  the  persons intending to  become  the  members of  the  proposed  society.  He  shall  issue  receipts  to  the  proposed  members  for  the  amount  collected  with  his signature  under  his  name  and  designation.  The  money  so  collected  shall  be deposited  within  seven  days  from  the  date  of  collection,  in  an  account  opened  by the  chief  promoter in  the  name  of  proposed  society,  in  a  scheduled  or a  cooperative bank..  He  shall  maintain  a  cash  book,  receipt  book,  voucher  book  and  other accounts  for  the  money  collected  and  remitted  to  the  bank.    However,    he  shall  be competent  to  retain  such  money  as  may  be  necessary  and  sufficient  to  incur incidental  expenses  like  printing,  stationery,  typing,  postage,  etc.,   

(5)  After  collecting  the  share  capital  to  the  extent  permitted  by  the  Registrar from  the  specified  number  of  persons,  the  chief  promoter  shall  convene  a  meeting of  the  promoters  of  the  proposed  society  and  place  the  details  of  the  particulars  of receipts  and  expenditure  incurred  and  the  names  of  the  proposed  members  from whom  share  capital  is  collected.    After  getting  a  resolution  passed  in  the  promoters meeting,  he  shall  submit  a  proposal  to  the  Registrar  for  the  registration  of  the society  in  the  prescribed  application  along  with  

• five  copies  of  the  bye-laws  of  the proposed  society  and  
• the  list  of  proposed  members  with  their  names  and addresses.    

If  there  is  any  change  in  the  promoters  list,  it  can  be  ratified  by  the registering  authority.   

The  application  shall  be  signed  by  each  one  of  the applicants  who  is  an  individual  and  by  a  person  duly  authorised  on  behalf  of  any cooperative  society  which  is  an  applicant  and  shall  be  accompanied  by  the prescribed  fee."

Authority: Karnataka Cooperative Act Rules 2013

Sharing of Information with the Focus Interest Group

 Dear All,

1. I will keep sharing daily the progress on the work wrt registration of Coop.
2. This is to facilitate Notice (to owners) and Comments (from owners).
3. You can comment as reply to the mail or as comments on the particular blog post itself.
4. I strongly believe that all owners have a right to know what is happening so that they can contribute or at least warn if such warning is needed to avoid some difficult situation for our group. 
5. Many heads are always better than one head!
6. I strongly believe in total transparency as the work is in progress.

• In 1913 “Harper’s Weekly” published “What Publicity Can Do” by Justice Louis D. Brandeis which began with the following words: 8

  Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman.

7. Those who are disinclined to contribute to the thinking process can always ignore/switch off from these communications and blog posts.
8. Those who are willing and able to contribute are always welcome and any contribution will be appreciated.
9. Those who  have differing thoughts/opinions are more than welcome to express it and differences of thoughts/opinions will be analyzed carefully and if found suitable will be incorporated in the work in progress.
10. A lawyer will be extremely sensitive to his ignorance in the particular area of practice coming to light of his clients and 
11. since I am NOT a lawyer, I have no such bias or any need to conceal my ignorance or need for such guidance.
12. So, feel absolutely free to comment/suggest as liberally as possible or not at all as you choose personally.

See the applicable Acts and Rules here:

https://lsm-coop.blogspot.com/2021/11/applicable-acts-rules.html

 

The rules/regulation regarding 

1. application for Registration, 
2. the process involved in submission of application and 
3. its further approval  and
4. issue of Registration certificate and 
5. what to do if the Registrar refuses to register a proposed co-operative society 

and these have been captured  in detail here:

https://lsm-coop.blogspot.com/2021/11/application-for-registration-of.html