I have a maintenance dues outstanding at my office premises in a commercial building in Mumbai suburbs under a cooperative society since last many years due to major business losses incurred. Prior to the same I always had a credit balance in the society accounts for close to 12 years. I was under the impression that it is governed by the Maharashtra CHS bye-laws but was informed today by the secretary that it is governed by the Maharashtra Cooperative Societies act & does not have to subscribe to CHS bye-laws.
My query is whether
1) Payments made are to be by rule adjusted towards principal dues (as per CHS bye-laws) or in the case of CS act adjusted towards interest dues first. My payments are being adjusted only towards interest set off.
2) Interest charges on defaulters payments is at 21% as adopted by society but being charged on compounded basis & not simple interest as being followed by CHS bye-laws.
Pls advise on the right methodology to be followed by the society.
