Charging high late fee

This query is : Resolved 
 

Online (Querist)
11 April 2021

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 ?


J K AgrawalOnline (Expert)
11 April 2021

Society can charge a reasonable and probable loss amount which it suffer for non performance of contract by you.

joe josephOnline (Querist)
11 April 2021

Does that mean they will be able to charge 144% as late fee ?

kavksatyanarayanaOnline (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 VashistaOnline (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 josephOnline (Querist)
12 April 2021

Yes,I am ready to pay an amount as latw fee,but not this exorbitant amount.

ashok kumar singhOnline (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 goyalOnline (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 josephOnline (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 AgrawalOnline (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.



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