by Who is “Family” in a Housing Society?
Maharashtra Co-operative Societies Act, 1960 and Model Bye-Laws No. 3(25) (2014)
By Adv. Jagannath Mane – Co-operative Housing Society Legal Expert.
In Co-operative Housing Societies, disputes often arise over a simple but powerful term — “Family.” Whether it is about associate membership, nomination, flat occupation, or transfer of shares, misunderstanding this definition can lead to serious legal consequences.
This guide explains the legal position under the Maharashtra Co-operative Societies Act, 1960 and Model Bye-Laws 2014 (Bye-law No. 3(25)), along with practical insights from real disputes handled in Vasai–Virar region.
1. Importance of “Family” in Housing Societies
The definition of “Family” is important in the following situations:
- Admission of Associate Members
- Nomination and succession
- Transfer of shares or interest
- Permission to occupy flats
- Parking rights and usage disputes
- Eligibility for committee membership
Incorrect interpretation often leads to litigation before the Registrar or Co-operative Courts.
2. What Does “Family” Mean in Housing Society Law?
As per Bye-law No. 3(25), “Family” includes:
- Husband (In Case Female Member)
- Wife (In Case male Member)
- Father
- Mother
- Brother
- Sister
- Son
- Daughter
- Son-in-law
- Daughter-in-law
- Brother-in-law (wife’s brother / sister’s husband)
- Sister-in-law (husband’s sister / brother’s wife)
- Grandchildren
Key Observation:
The definition is inclusive and not exhaustive, meaning:
- Societies may interpret it broadly in genuine cases
- However, misuse to include unrelated persons is not permissible like tenants, friends, or business partners.
3. Position under Maharashtra Co-operative Societies Act, 1960
The MCS Act does not provide a detailed definition of “Family” in all contexts but recognizes it indirectly in provisions related to:
- Membership (Sections relating to admission and transfer)
- Nomination and inheritance
- Rights of legal heirs
Therefore, societies rely heavily on Model Bye-Laws for clarity.
4. Practical Legal Implications
(A) Associate Membership Rights
A person can become an Associate Member if:
- He/She is part of the member’s “Family”
- Consent of the original member is given
Common Issue:
Societies wrongly approve non-family persons — leading to disputes and cancellation proceedings.
An Associate Member is entitled to attend General Body Meetings (AGM/SGM) and, with the written consent and authorization of the original member, may exercise voting rights and be eligible to contest elections, including holding office as a Committee Member or Office Bearer (Chairman, Secretary, or Treasurer), subject to compliance with the Model Bye-Laws
[ However, such rights are not automatic. An Associate Member can exercise voting rights or contest elections only if duly authorized by the original member and if his/her name appears in the share certificate or membership records as required under the Model Bye-Laws ]
(B) Nomination V/s Inheritance (Legal Heirship)
- A member can nominate a person from family or even outside
- However, nomination does not create ownership, only a trustee-like right
Courts have repeatedly held that:
- Legal heirs prevail over nominee in ownership disputes
(C) Occupation of Flat. [ Who Can Stay in Your Flat? ]
- Family members can reside without being members
- Non-family occupants may require permission of the society.
Disputes often arise in:
- Leave & License cases not required for family members.
- Unauthorized occupants if non members occupation of Flat.
(D) Transfer of Shares / Flat/Shop Within Family mambers
- Transfer within family is generally easier.
- Housing societies cannot levy transfer premium on transfers made in favour of family members, even when the transaction is completed via a registered sale deed.
- Non-occupation charges are applicable only when the premises are given to non-family members; no such charges can be imposed if occupied by family
- Stamp duty and procedural requirements may differ.
(E) Committee Membership
- Only eligible members (not all family members) can contest elections
- Family members are eligible to be admitted as Associate Members in a co-operative housing society, subject to the consent of the original member and compliance with the Model Bye-Laws..
- Associate members have limited rights unless authorized
5. Common Misuse and Legal Risks
Many disputes arise due to:
- Showing tenants as “family members”
- Creating false associate memberships
- Unauthorized occupation by non-family persons
- Claiming rights in property without legal heirship
Such acts may lead to:
- Cancellation of membership
- Disqualification from committee
- Legal action under the MCS Act
- Civil and criminal proceedings
6. Judicial Approach
Courts and authorities generally follow these principles:
- Bye-law definition is guiding but not absolute
- Real relationship and dependency are examined
- Fraudulent claims are strictly rejected
7. Practical Advice for Society Members
- Always declare correct family details
- Avoid misuse of associate membership
- Execute proper nomination forms
- Maintain legal documents for relationships
- Take society approval where required
8. Conclusion
The term “Family” under Model Bye-Laws No. 3(25) (2014) is wider than the traditional definition but not unlimited. Its correct interpretation ensures smooth functioning of housing societies and prevents unnecessary disputes.
Understanding this concept is essential not only for members but also for managing committees and legal practitioners dealing with co-operative housing matters.
