Penal interest on outstanding dues of the society
Mehta
(Querist) 29 March 2017
This query is : Resolved
Is penal interest charged on outstanding dues of the society is justified ? What is the rate of interest as per law ? My society is recovering on the basis of compound interest and not on simple interest basis. What is the remedy for me if secretary is not co-operating me in giving the correct due amount.
Rajendra K Goyal
(Expert) 29 March 2017
Society can charge interest as per bye laws of the society.
Can approach registrar of societies in case step is not in accordance to the bylaws.
R.K Nanda
(Expert) 29 March 2017
depends on bye laws of society.
Mehta
(Querist) 29 March 2017
Thanks to all the Experts for your valuable advise. Need one clarification, bye laws of the society means my society or common bye laws of the society.
Bharat Vakil
(Expert) 30 March 2017
Your question is answered u/s 69 & 70 of the Byelaws. Which reads as under :-
69.
a. A Member shall be deemed to have committed default in payment of the
charges of the Society, if the payment mentioned in the demand notice/bill is
not made within the period as prescribed under Section 73CA of the Act. The
Secretary of the Society shall bring the cases of defaults in payment of the
Society's charges to the notice of the Committee for taking further necessary
action.
b. In case of default by Member in payment of maintenance and service
charges, the committee shall initiate a recovery proceeding under section 101
of the Act.
70. A Member shall be required to pay simple interest at twenty one percent per
annum, or, at such lower rate as may be fixed by the General Body, on the
outstanding dues to the Society, from the date the amount was due as
prescribed under Bye-law no. 69, till full and final payment by the Member
Mehta
(Querist) 30 March 2017
Experts Vakil sir, Thanks for the detailed explanation, as I informed my society has charged compound interest hence I am asking for the revised calculation on simple interest basis but secretary is not responding, what step I should take, please advise.
Bharat Vakil
(Expert) 31 March 2017
In that case you can file a appeal/complaint with the Deputy Registrar of Cooperative Societies of your area,giving the relevant details.
Hemant Agarwal
(Expert) 13 April 2017
1. STOP paying the Society dues, AFTER issuing a "legal notice" to the Society Secretary and thereafter file a grievance complaint before the local Consumer Court and recover all the earlier paid compound interest amounts.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Mehta
(Querist) 13 April 2017
Thanks to all the hon. experts for your valuable advises.
