Recovery under section 101 in housing society
sandeep
(Querist) 26 August 2016
This query is : Resolved
Respected sir/madam. 1) One of our member in society defaulter as per committee. 2) society file a case under section 101 in 2006 in 2010 the member given the cheque of outstanding amount with interest but without penalty . 3) property tax penalty is levied on only this member but committee never passed in resolution. 4) society never clear the cheque, now society want to file a case again under section 101. What is the chances of recovery under section 101 for society also time limit is also for recovery under section 101 if yes please describe the period.? Query is urgent please reply as earlier as possible.
Ms.Usha Kapoor
(Expert) 27 August 2016
Dear Client,
Benefit of following completing 101 latest amended procedure. You can fast track your case under amended section 101 odf Cooperative Housing Societies Act which is summary procedure and you can fastback the recovery procedure in the new amended law of Section 101:Procedure
1.The Section 101 procedure is a simpler way of realizing arrears of society dues without instituting the cumbersome court proceedings a compulsion in business which require establishing debt due by a debtor to a creditor in the course of business a profit making activity necessarily.
2.The hallmark of this procedure is the Assistant Registrar/ Deputy Registrar issuing a Recovery Certificate for the amount due, after making a hearing and a summary inquiry on the basis of the affidavits filed by the disputant and the respondent. Obtaining this certificate costs maximum of Rupees one thousand payable as application fees to the State Government.
3.A certificate granted by the Registrar under sub-section (1) or (2) shall be final and a conclusive proof of the arrears stated to be due therein, and the same shall be recoverable according to the law for the time being in force for the recovery of land revenue.
4.After the recovery certificate is issued the ball is in the Court of the state Government;
i.On receipt of the Recovery Certificate, the Recovery Officer shall prepare demand notice for being sent to the Sale-Officer for attaching the movable property of the member concerned.
ii.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.
iii.If the amount not paid by the member concerned immediately on service of the demand notice, the Sale Officer will seize the movable property.
iv.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.
Making Application for issuing a recovery certificate
a.Issue a notice for payment of dues (including up to 21% interest) to the defaulter, with a warning therein that on failure to make payment of the same, an application would be made to the Competent Authority under section 101 of MCS Act, 1960.
b.Pass the resolution to recover the dues in the Managing Committee Meeting.
c.Issue a final notice to the defaulter
e.Apply to the Assistant. Registrar/ Deputy Registrar for the recovery of dues.
f.Pay the prescribed fee (Rs 15 to 1000 max) through a challan payable at the Reserve Bank of India.
As is evident there is no suit before court of law is involved. Infact for cooperative disputes cooperative courts have exclusive jurisdiction and even that is obviated by special procedure of Recovery Certificate and Administration of the State helping Societies to recover arrears of dues at almost no coast. Question of time barring is unthinkable.
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Comment ( 1 )
santosh kumar
February 21, 2015 11:04 pm
a person is not paying his dues from 3 year how society an recover the dues from such member
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Hindi Version
Rajendra K Goyal
(Expert) 27 August 2016
Why the society did not clear the cheque received?
Whether previous case was withdrawn?
Has the society send the notice?
Discuss with local lawyer in view of the bye laws of the society.
Kumar Doab
(Expert) 27 August 2016
You may revert to points raised by Mr.Goyal.
sandeep
(Querist) 29 August 2016
Limitation for recovery under section 101
Raj Kumar Makkad
(Expert) 29 August 2016
Limitation for recovery is 3 years from the date of entitlement to recover.
Rajendra K Goyal
(Expert) 03 September 2016
Repeated, Please ask any further information / advice in same thread. :
http://www.lawyersclubindia.com/experts/Society-maintenance-566271.asp
http://www.lawyersclubindia.com/experts/Housing-society-penalty-614676.asp
http://www.lawyersclubindia.com/experts/Recover-dues-of-housing-society-559186.asp
Kumar Doab
(Expert) 03 September 2016
Why so many repetitions?
