Recovery of outstanding dues from apartment owners
Sagar Kotak
(Querist) 13 September 2016
This query is : Resolved
We are an Apartment Owners Association situated in Mumbai. One of our member i.e. a Condominium Apartment Owner has been defaulting in his payment of monthly maintenance charges since a long time inspite of issuance of Legal Notice by the Association. The Maharashtra Apartment Ownership Act 1970 is quite ambiguous with regards to the law & procedure pertaining to Recovery of Outstanding Dues from Apartment Owners (Unlike MCS ACT 1960 – U/s 101). May I be apprised by the respected learned counsels on the following subject issues:
1. What is the Legal remedy for Recovery of Outstanding dues from Apartment Owners and under what sections / laws ?
2. Which is the competent authority having the jurisdiction to adjudicate upon the said issue?
3. How much Court fees is required to be paid? (Tentative)
4. What is the procedure, in sequence, for initiating action against the Apartment Owner?
5. Any further valued opinion / guidance pertaining to the said issue is very much appreciated.
Awaiting the precious inputs of all the esteemed lawyers.
Warm Regards.
Ms.Usha Kapoor
(Expert) 14 September 2016
DEAR client,
Your Bye Laws will provide for every contingency such as the action to be taken against a defaulting member in not paying arrears of maintain charges.
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every owner if he is amember of the apartment owners association will have to pay maintenance.
To make a member to pay maintenance the association or the housing society which is supposed t be a registered one can initiate recovery of maintenance proceedings.
The investors who are selling the apartment will have to pay their dues to get NOC to either from the builder or the owners association .
in your case if the owners are members of the association/ welfare committee, first send them notice signed by the society president/chairman and if not paid sue them for recovery .If your association has been registered under society act, you can take this recovery procedure with the deputy registrar of societies.
Registrar will conduct a trial for recovery the erring owners will be summoned and if found the dues pending he can order a recovery certificate.once the recovery certificate /order by the concerned officer, the association can attach the property if the owner fails to pay. This is the legal procedure which can be initiated in a co-operative society where maintenance arrears due.As a punishment measure the owners may cu power supply and disconnect water supply to the flat of defaulting member in paying arrears maintenance charges.The owners association may collect penal interest at 21% or 12% in addition to maintenance charges from the defaulting member till payment.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 14 September 2016
U can invoke Coop Societies Act for recovery for obtaining recovery cert. U/s 101 .
Rajendra K Goyal
(Expert) 14 September 2016
1. Case before registrar of societies can be filed. Civil suit can also be filed against the defaulter.
2. Move to registrar of societies.
3. Discuss with local lawyer regarding court fee.
4. Your lawyer would guide, legal notice sent already.
cherukuri prasad
(Expert) 15 September 2016
Associations are registered under cooperative law. Therefore registrar of cooperation societies is the competent authority. All your grievances shall be redressed by him before you can go to civil court
Hemant Agarwal
(Expert) 15 September 2016
INTROSPECT ON THIS:
1. Recovery of members "outstanding dues" CANNOT be invoked under the MCS Act, UNDER ANY CIRCUMSTANCES, "IF" the members have formed a "Apartment Owners Association", under the "Maharashtra Apartment Ownership Act".
2. The ONLY & ONLY recourse to recovery of "outstanding dues", from members of a "Apartment Owners Association", is to file civil suit before the "Civil Court", under CPC Act, by following due procedure of law.
3. The registrar of Cooperatives (who is under the MCS Act) has absolutely no legal jurisdiction to hear or pronounce ANY order, on members registered under the "Maharashtra Apartment Ownership Act".
4. Cooperatives Societies are registered under MCS Act .AND. "Association /Condominium" are registered under "Maharashtra Apartment Ownership Act" and both have absolutely distinct bye-laws AND FURTHER "there is no registrar for adjudicating, as yet" for "Association /Condominium" that are registered under "Maharashtra Apartment Ownership Act".
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Raj Kumar Makkad
(Expert) 16 September 2016
I do endorse the wise advice of expert hemant agarwal ji.
