sudhakar s. yeradkar (service) 01 October 2009

Fine on bounced cheque by Co-op hsg society.

My maintainence cheque for June,09 Rs.713/- dishonoured due to reason "Word amount & figure not matching" - In July bill society has charged interest for June outstanding as well as Rs.250/- as fine under title OTHER CHARGES'. where as Bank has debited Rs.41/- from society account. I request for bye-laws or resolution but society is not ready to produce the same. I would like to know is society authorised to charge interset on outstanding at the same time fine for dishonouring cheque which amount is high then the bank charges.

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2 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 02 October 2009

You seek the rules copy from siciety in writing and if not provided take the help of local lawyer.

V. VASUDEVAN (LEGAL COUNSEL) 03 January 2010

While interest for the month June is as per the model bye-laws, society is not empowered to charge any fine. Hence do not pay any fine and lodged a fresh cheque or cash for the principal amount due and interest and take a receipt for the amount. Even if they refuse, the refusal should be in writing.

vasudevan