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Section 101 of
MCS Act 1960 provides easy route for Recovery of Dues of society says Adv. R. P. Rathod.
The recovery of dues from the defaulting members of any Housing Society
is a thorny task when such unashamed members do not co-operate with
the Managing
Committee of their Society. They enjoy all the facilities under
the laws governing
the Societies simultaneously by breaking the laws of Society in the
matter of timely payment of their monthly dues.
Earlier, the Co-operative
Housing Societies used to proceed against the defaulting member for recovery of dues
under Section 101 of the MCS Act, 1960
with full-fledged trial in the Co-operative
Court with all the ingredients e.g. cross-examination of
witnesses, exhibiting the documentary evidences and their interpretations
etc.
With the amendment of
Section 101 of the MCS Act, 1960
the recovery of dues from the willful
defaulters has now become easy and faster. The reason is that the amendment
provides quick relief with no full-fledged inquiry unlike the
series of proceedings in Co-operative Court. The
power is now given to the Asst. Registrar/
Deputy Registrar to issue a Recovery
Certificate for the amount due by making a summary inquiry on
the basis of the affidavits filed by the disputant
and the respondent.
To begin with the procedural aspect, the Chairman/ Secretary of
the Society has to issue a demand notice
to the defaulter giving him opportunity to make the payment of the dues to the Society within such period,
as the Chairman/ Secretary may
allow, with a warning therein that on failure to make payment of the same, an
application would be made to the Asst. Registrar/
Deputy Registrar under section 101
of MCS Act, 1960 for recovery of the outstanding dues.
Thereafter, upon the failure of the
defaulter member
to make the payment of the outstanding
dues to the Society within stipulated period as
mentioned in the notice, the Managing
Committee has to pass a resolution
against the defaulter member under section 101 of the MCS Act 1960
authorizing the Chairman or the
Secretary of the Society to sign all
the documents to be submitted to the Asst. Registrar/Deputy Registrar of
Co-operative societies and to furnish the necessary information
required by the them for issuing a Recovery
Certificate.
On receipt of the application from the Society, the Registrar
would give hearing to the member
concerned and on verification of the facts
of the case, outstanding dues and after making such inquiries,
as the Registrar deems fit, the Recovery
Certificate will be issued.
On receipt of the Recovery Certificate under
section 101 from the Asst.
Registrar/Deputy Registrar along with other documents, the Recovery Officer shall
prepare demand notice for being sent to the Sale-Officer for attaching
the movable property of the member
concerned. The Sale Officer, on receipt of recovery paper from the Recovery Officer,
shall visit the flat of the member concerned for preparing an inventory
of the movable property and
handover such list to the member concerned and serve the demand notice
on the defaulter member. If the
amount not paid by the member concerned immediately on service of the demand
notice, the Sale Officer will seize the movable property.
Thereafter, the Sale Officer will fix the
date, time and place for such auction of the movable property seized
and auction out the same and pay the sale proceeds thereof to the Society,
in satisfaction of the outstanding dues payable
by the defaulting member to the society.
In the event of the proceeds of the sale of movable property are found
to be insufficient to cover the outstanding dues in full
as per the Recovery
Certificate, the sale officer will then proceed against the flat
of the member concerned by arranging auction of the flat to recover the balance
of the dues payable by the member to the Society.
· Issue a Legal Notice for payment
of dues to the defaulter.
· Pass the resolution to recover the dues in the Managing
Committee Meeting.
· Issue a final Legal notice to the defaulter.
· Apply to the Asst. Registrar/ Deputy Registrar
for the recovery of dues.
In these years we have helped so many societies recover their dues &
outstanding, in case you require our services you are free to
contact the Co-operative Guru says Adv. R. P. Rathod.
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