Ashwin 21 July 2015

How is the interest calculated for late payment

I am new to this forum. My society issue a building repair work invoice on 15th of every month asking its member to make a payment by same month end. Now for some reason I delay a payment by one day which is payment was suppose to be done by 31st but I made a payment by 1st of next month. Now society is calculating the interest for complete next month which is for period of 1 month and charging me. My question here is can society or any one charge me interest for complete month when the payment was made on very first day.

If yes which rule are they following. I know this amount is not big but just want to know is this behavior right.

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2 Replies

Subash M R (Advocate) 22 July 2015

Whenever by any bye-law duly made in accordance with the rules and regulations of the society,any pecuniary penalty is imposed for the breach of any rule or bye-law of the society,so,if bye-law says late payment of one day or thirty days may be considered on the same footing,then you should be bound by it.

Thanking you,

Ashwin 25 July 2015

In agm meeting committee member has not passed any such resolution. In fact in agm meeting committee member have been given power to wave this off if their is minor delay of couple of days. I just need to know does society law defines any such thing