Charging high late fee

joe joseph (Querist) 11 April 2021 This query is : Resolved
All,

I am owner of a flat in Kochi,Kerala. Few times I have paid the maintenance fee late. Society is charging a late fee of around 144% . Is this possible ?

Follow Query

Report Abuse

Quick Summary

If your housing society is charging an exceptionally high late fee, such as 144%, for delayed maintenance payments, it's worth investigating. While societies can charge reasonable fees to cover losses due to late payments, this rate seems excessive. You should first check your society's bylaws and any relevant member resolutions. If the fee isn't in line with these rules, you can complain to the Registrar of Cooperative Societies or Kerala RERA. If bylaws do permit such a high fee, a court may still deem it unreasonable and not enforce it, as damages should reflect actual losses.

J K Agrawal (Expert) 11 April 2021
Society can charge a reasonable and probable loss amount which it suffer for non performance of contract by you.

joe joseph (Querist) 11 April 2021
Does that mean they will be able to charge 144% as late fee ?

kavksatyanarayana (Expert) 11 April 2021
No. However, verify the Bylaws of the Society. But to the higher late fee cannot be asked if the rules and regulations are not permitted. So complain to Kerala RERA/Deputy Registrar of Coop.House Buldgs.Societies of your District.

Dr J C Vashista (Expert) 12 April 2021
Late fees charges are pre-decided by members of the society which is mentioned in its (society) Bye-Laws, what has been provided by all members of the society ?
You will agree and appreciate that penal charging of delayed maintenance to wake up lazy and lethargic members applicable to all members (including yourself), isn't it ?

joe joseph (Querist) 12 April 2021
Yes,I am ready to pay an amount as latw fee,but not this exorbitant amount.

ashok kumar singh (Expert) 12 April 2021
Check out by-laws of your Society, and try to take the copy of resolutions taken by the members of society as to certify for such amount, which you feel being exorbitant one. if you found that the demand is not in terms of the by-laws and the resolution of the society, in such event you have to submit your representation to the society and even though the same not resolved then you have to prefer a suit for declaration before the competent civil court having jurisdiction, thereof.
thanks

Advocate Bhartesh goyal (Expert) 12 April 2021
Society can't act against it's own bye- laws and if any office bearer of society demands maintainance charges or late fee in illegal
manner ,you can make complaint to Registrar co-operative societies .Don't pay if you think late fee is exorbitant and arbitrarily.

joe joseph (Querist) 12 April 2021
What if bye-law demands 144 percent as late fee. Is it possible to file a case for asking this huge amount as late fee.

J K Agrawal (Expert) 13 April 2021
you are not bound to pay 144%. As per section 73 of indian Contract Act in case of breach of contract you are bound to pay the actual loss sustained by suffering party. in your case the damage is liquidated at 144% so the court will see that if this much is a reasonable loss to society or not. in case of liquidated damages It is maximum 144% in your case.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries