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EA   26 November 2022

Can society charge interest on delayed payment of major repair fund contribution

Hello, I am the Secretary of a Co-operative Housing Society Ltd., in Mumbai.  

Our building which is 25 years old has 34 flats.  We have taken up Major Repairs based on the Structural Audit Report done.  Some members have refused to pay the recent contribution of Rs. 10,000/- which was passed in the AGM on 25.9.2022 and included in the maintenance bill of October 2022.  Now that the interest is charged on this unpaid amount of Rs. 10,000/- in their maintenance bill of November 2022, they claim that it is illegal to charge interest on unpaid Major Fund Contribution.

Could any of you please inform what is the correct position on this? Is there any court decision allowing the society to charge interest on unpaid dues of Major Repairs?  Appreciate your valuable response.  Thanks!


 1 Replies

P. Venu (Advocate)     26 November 2022

Any and every delayed payment is liable for interest at a reasonable rate. Those who unwilling to comply can seek remdies in accordance with the law/procedure.

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