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Society dues not paid

(Querist) 11 December 2011 This query is : Resolved 
SIX YEARS AGO A BUYER BROUGHT A FLAT IN THE SOCIETY. NOC WAS GIVEN BY THE SOCIETY FOR REGISTRATION AND LOAN FROM BANK. THE BUYER APPLIED FOR MEMBERSHIP, DUE TO CERTAIN ANOMALIES THE FLAT WAS NOT TRANSFERRED. THE BUYER WAS REQUESTED TO CURE THE ANOMALIES AND APPROACH BACK TO THE SOCIETY. THE BUYER EVEN AFTER 6 YEARS HAS NOT COME BACK TO THE SOCIETY AND ALSO NOT PAID THE PENDING MAINTENANCE DUES OF THE SOCIETY.IN THE MEAN TIME THE LIEN LETTER HAS ALSO NOT BEEN SEND BY THE BANK TO THE SOCIETY.

NOW THE SOCIETY HAS APPROACHED THE BANK TO SAY THAT SINCE THE SHARES OF THEIR CLIENT HAVE NOT BEEN TRANSFERRED IN HIS NAME AND ALSO HE IS NOT THE MEMBER OF THE SOCIETY THE SOCIETY CANNOT TAKE CARE OF THE LIEN FORCED ON THEM.

THE SOCIETY HAS ASKED THE BANK TO EITHER GET THE FLAT TRANSFERRED IN THEIR CLIENTS NAME OR THE SOCIETY WILL NOT BE RESPONSIBLE FOR THE LIEN.

WOULD THIS ACTION BE RIGHT ON THE PART OF THE SOCIETY TO GET ITS DUES AS IT CANNOT APPROACH THE SOCIETY REGISTRAR AS THE CLIENT IS NOT A MEMBER ?

SUSHIL WAGH
Raj Kumar Makkad (Expert) 11 December 2011
The society has no other option in the given facts but to initiate action, it has taken. This act is not harmful against anyone.
V R SHROFF (Expert) 11 December 2011
Sushil Wagh,
Your Society have Right over the Members.
Your Bye-Laws are applicable to Your Members only. You cannot dictate Bank or Purchaser, who is not a member.

Let it be 6 years or 60 years.

According to me, Society should
1] Charge Non Occupation Charges to present Occupier
2] Send a Notice under sec 101 of Mah Co-op Soc Act (if in Mah St)
3] Start Recovery Procedure against OLD MEMBER, and the beneficiary [Occupier] and collect your dues.
4] Impose Fine say 1L for non compliance of your stated facts.
5] Inform Bank accordingly, with warning that you will withdraw your NOC to Bank, if problem not resolved by concerned parties.

Adv Shroff
11-12-2001



V R SHROFF (Expert) 11 December 2011
Sushil Wagh,
Your Society have Right over the Members.
Your Bye-Laws are applicable to Your Members only. You cannot dictate Bank or Purchaser, who is not a member.

Let it be 6 years or 60 years.

According to me, Society should
1] Charge Non Occupation Charges to present Occupier
2] Send a Notice under sec 101 of Mah Co-op Soc Act (if in Mah St)
3] Start Recovery Procedure against OLD MEMBER, and the beneficiary [Occupier] and collect your dues. User of Society services like water, etc , are liable for 101 recovery.
4] Impose Fine say 1L for non compliance of your stated facts.
5] Inform Bank accordingly, with warning that you will withdraw your NOC to Bank, if problem not resolved by concerned parties.

Adv Shroff
11-12-2001



Chanchal Nag Chowdhury (Expert) 11 December 2011
The Society is well within its rights to withdraw lien in the given circumstances.
Guest (Expert) 11 December 2011
Agree with experts.
prabhakar singh (Expert) 11 December 2011
Mr.V R SHROFF has given you appropriate guidance to meet the problem posed before you.one does not need to add any thing more.
M V Gupta (Expert) 13 December 2011
One important issue is overlooked by my learned friends. The society does not appear to have issued any rejection of the transfer application filed by the vendor Memebr and the purchaser of the flat. Under Sec 22 of the Maharashtra Coop Societies Act, 1960 the only gorund on which a transfer of flat and the sahres can be rejected by a Society is that the transferor did not complete one year of Memebrship in the Society. No othe ground to refuse transfer of shares and flat is acceptable. If within Three months the Soceiyt had not advised refusal of the transfer the purchaser will be deemed to have been admitted as memebr of the Society.As such I feel in the circumstances narrated the purchaser is legally deemed to be ammember of the Soceity. Better the Soceity consults local lawyer who is dealling Society's matters and act as per his advice.
Sushil Wagh (Querist) 14 December 2011
Thanks all for your valuable comments. The occupier was served a notice within 3 months of his application for transfer with reasons on anomalies to be rectified for flat to be transferred. The occupier has not complied nor replied to the same. Sec 101 is not applicable to the occupier and the previous vendor is not traceable. Maintenance bills are being provided to the the occupier who is not paying the same.

Hence the approach to the bank for withdrawal of NOC and lien.
M V Gupta (Expert) 14 December 2011
The letter said to have been written is only for rectification of certain anomolies. This is not a letter of refusal for admission of the transferee as member of the Society. It would appear that the difficulty faced by the Society can be solved by admitting the Transferee as member of the Society and transferring the share certificate in his name, pending rectification of the anomolies and then recover all the arrears of the dues from the transferee.In case he does not pay up the dues then the Society may file an application before the Registrar for recovery of the dues with interest. Incidentally the Section mentioned in my earlier posting should be read as Sec. 29 (2)(a) of the MCS Act and not sec. 22.
Sushil Wagh (Querist) 15 December 2011
Thank you Gupta ji for your valuable suggestion. The letter to the occupier was for for rectification of certain anomolies and till the same was done transfer was to be put on hold. If the flat is transferred with the anomalies intact, other would be flat buyers would make it an example to break the rules.


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