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Prem Sequeira   28 February 2024

Different rules for maintenance dues recovery from chs & commercial bldg cooperative society

I have a maintenance dues outstanding at my office premises in a commercial building in Mumbai suburbs under a cooperative society since last many years due to major business losses incurred. Prior to the same I always had a credit balance in the society accounts for close to 12 years. I was under the impression that it is governed by the Maharashtra CHS bye-laws but was informed today by the secretary that it is governed by the Maharashtra Cooperative Societies act & does not have to subscribe to CHS bye-laws. 

My query is whether 

1) Payments made are to be by rule adjusted towards principal dues (as per CHS bye-laws) or in the case of CS act adjusted towards interest dues first. My payments are being adjusted only towards interest set off. 

2) Interest charges on defaulters payments is at 21% as adopted by society but being charged on compounded basis & not simple interest as being followed by CHS bye-laws. 

Pls advise on the right methodology to be followed by the society. 



 1 Replies

T. Kalaiselvan, Advocate (Advocate)     29 February 2024

Since it is coming under MCS and not under MCHS, the bylaws for the MCS would be applicable in this regard.

You can confirm the bylaws in this regard

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