Adv. R. P. Rathod.
emphasis that “It is the duty
of every member to pay dues properly & on time for
ensuring the smooth functioning of the society.” Generally people living in
(Co-operative Housing Society) CHS are well aware
of the fact that they are required
to pay their regular contributions
towards the expenses and expenditure incurred for running the day-to-day
affairs of the society. Remember, a CHS is never
formed for making profits instead it collects and disburses
the contributions from its members towards common facilities and
services enjoyed by its members.
These members do not understand
that the society is formed by
like-minded people for enjoying certain benefits
that can be achieved in a cumulative fashion. There
are habitual
defaulters and some deliberate defaulters,
apart from those few who are misguided and
join the forbidden group of defaulters
for unwanted reasons
that need to be sorted out.
Realising the difficulties
faced by the Managing committee members
of the society, Adv. R. P.
Rathod. states
that the following punishment and the penalties
are prescribed
for the defaulters. The fact is that one cannot stop paying
his/ her share towards the regular contributions
towards the maintenance of the society
as per the provisions of the byelaw. The
Law is
very clear on this subject that the member should not hold the
payment
for any reasons. There
are various legal remedies to solve
the problems of the member but he should
not hold the payment or use the same as
pressurizing tactics.
Adv. R. P.
Rathod. says that it is very important that a
defaulter of a CHS should understand
the problems, complications and consequences
associated with him.
If a member
fails to pay the dues after issue of the
notice for a period exceeding three months is termed
as a defaulter as per the Maharashtra Co-operative Societies Act
1960 and as per Bye-laws of the society.
Every member of the society also
will call him by this name, which is an insult
to the member.
A defaulter as termed above cannot
contest the election to be held
for the post of Committee Members as per
the provision of the Bye-laws and Election Rules.
A persistent defaulter can be expelled
by the society as provided in the Bye-laws and the Maharashtra
Co-operative Societies Act 1960. Even
the High Court
has held that a persistent defaulter can
be expelled.
(4.)
Eviction from the flat:
If the member is expelled and the same is approved
by the registrar and other higher
authorities, the concerned member is evicted from
the premises to pay society dues.
(5.)
Attachment of the flat:
After obtaining the Recovery Certificate from
the Registrar the Special Recovery officer,
shall make all the arrangements to auction
the premises,
which again will be at the lowest price.
This not only insults the member but he
will also make him suffer financially.
The concerned member will have
to undergo
lot of embarrassment. Once the respect and goodwill
is lost it will be very difficult to regain.
Dues attract interest @21% p.a., which
is an exorbitant penalty to be
paid by the defaulter member, Adv. R. P.
Rathod. terms defaulting maintenance charges as
good as defaulting a credit card payment.
The concerned defaulter will have to
defend his legal cases at his own cost. Further any expenses
incurred by the society in filing the cases will be recovered
from the concerned member and the same will
be included in the Certificate of recovery given
by the registrar. Upon granting
such Recovery Certificate the Stamp Duty,
Court enquiry
fees and surcharges will have to be paid by the respective
defaulter member.
Further a portion of the Legal expenses
incurred by the society will be included in the share
of contribution
given by the defaulter member. Besides, attending the Court cases
and Registrar's
office is a time-consuming process. Last
but not the least; you will have to pay all the dues along with
interest.
At every general body meeting and Committee
meeting, discussions about the recovery of dues from
such defaulter will be held. It is better
to pay
society dues and fight for other disputes.
If the defaulter has some
complaints or grievances against the society
or Managing
Committee, his said complaints will not be entertained
by the Office of Registrar unless
and until he pays the society dues.
If in the General body meeting the
members frame & approve certain rules with respect to parking
and resolve to not to allow or allot parking
to a defaulter. Then in such a situation he/ she
would be deprived from parking
his/her vehicles in the society.
The concerned defaulter member
cannot avail of any loan which he wants to take by mortgaging
his premises on which dues are pending, as
the financial
institution will always ask for a No dues Certificate, which
would make him run pillar to post and
solicit before the Office bearers for issue
of No dues
Certificate.
(13.) He cannot Sell
his premises:
A defaulter member
cannot sell his/ her flat unless and
until he clears-off the dues. As the society would refuse the NOC
& also to transfer the premises unless & until
the dues
are cleared.
If he wishes to rent
or sub-let his premises the society
might not let him permission to do so
unless and until he pays all the dues.
Thus I recommend all members of CHS to
pay the dues of the society always
on time. If there is any dispute on extra charges,
the same can be claimed as refund by making an application
to the Office of the Registrar, Co-operative societies.
In such cases, at least
the unnecessary
expenses on surcharge, Court fees, Enquiry fees, interest
burden will be reduced also all the disadvantages discussed hereinabove
will not hold for the member concludes Adv. R. P. Rathod.