Legal fees charged by hsg soc.
Querist :
Anonymous
(Querist) 19 October 2011
This query is : Resolved
KIND ATTN. AJAY SETHI.
THE RECOVERY SUIT ON DEFAULTERS ITSELF IS WRONG AND IF THE MEMBER GOES FOR REVISION
AND IF ORDER IS PASSED SAYING THAT NO COST TO ANYONE CAN THE SOCIETY LEVY LEGAL CHARGES.
THE RECOVERY PENAL INTEREST ITSELF IS 21%
WHICH IS ALREADY HIGHER THAN MARKET RATES.
MOREOVER THERE ARE MANY ISSUES WHERE IN AT TIMES THE MEMBER NEEDS TO TAKE LEGAL RECOURSE.
WHO WILL TAKE CARE OF MEMBERS LEGAL RIGHTS.
WHEN COMMITTEE MEMBERS HOLD THE SOCIETY TO THEIR WHIMS AND FANCIES.
PREM
ajay sethi
(Expert) 19 October 2011
under model bye laws society can charge interest at 21% . society is justified in doing so .
to my mind if member has genuine griveance against society as for instance when there are leakage in flat and no action is taken then if legal expenses are incurred by the member society should not debit his account for legal expenses by passing resolution to that effect .
however in a case where therein is a defaulter who has failed to pay society dues the society should receover outstanding dues with interest and recover legal expenses .
how will a society run if members dont pay society out goings?
if however order is passed that no legal charges are to be recovered then society cannot obviously do so
