Co operative audit
sandeep
(Querist) 23 July 2017
This query is : Resolved
I received the audit report of my society for the year 2016-17. One member is defaulter in our society since registration of society. Society was registered in 2006 under mcs act. The society is filed a recovery under section 101 of mcs act in Dec 2016. The registrar ia dismissed the recovery and reason state that society have no right to recover the amount of prior registration and state that issued him fresh bill without adding prior registration amount in bill. Now society is given him fresh bill with interest from registration period i.e. from 2006. Now that defaulter member showing the Oct 2006 bill is 1290 and total amount payable is 2,00,000/- . Now auditor had made two entry in audit report liability and show that one liability is prior registration and second entry is after registration. Now that defaulter member write a letter to society and asking when my dues is only Rs 1290 in Oct 06 then why society is charged amount arbitrary and state that hence it was society mistake to issue a wrong bill I am not liable to pay interest and given a cheque of only principal amount. I am secretary of the society. 1) Now there is a question that can we make dual entry in liability one for prior registration and second is after registration? 2) Can u please suggest that it is our mistake to issue the wrong bill ,Can we accept the cheque of principal amount or ask him to pay total amount with interest?
Kishor Mehta
(Expert) 24 July 2017
Sir,
It depends on the maintenance bills issued, in case of monthly or quarterly issue of bills the defaulter member may be asked to pay the amount, with interest, from October 2006 onwards if the amount of interest is shown separately in the bill.
The member cannot shirk his liability on a technicality.
Good luck,
Kishor Mehta
Rajendra K Goyal
(Expert) 24 July 2017
Agree with the advice from expert Kishor Mehta.
Dr J C Vashista
(Expert) 25 July 2017
Why the Society kept on accumulating the amount since 2006. Was there any demand raised since 2006, if the member did not pay during last 11 years, what legal action was initiated by MC?
The limitation for recovery is 3 years, how the Society can raise bill and claim the amount retrospectively?
However, consult and engage a local lawyer practicing in Cooperative Societies matters.
krishna mohan
(Expert) 27 July 2017
I may add that it is time barred claim unless continuous notice is issued and recovery action taken legally by issue of legal notice. You may consult legal expert of your area specialized in property matters for right advise. Since it is a cooperative housing society, AGM normally need to have taken a call on such long pending dues and passed appropriate resolution in terms of your byelaws.
