HOUSING SOCIETY DEFAULTERS

Co-operative Socieities Act provides compulsory arbitration  for resolution of disputes between the society and members. Jurisdiction of Civil Court is barred. On an application by either party in prescribed form and with prescribed fee, the Registrar shall appoint an arbitrator  

Vikas Mishra,

 

First please be clear under which statute ( i.e. Societies Registration Act, 1860 or the Concerned State Societies Registrations Act, or the Co-Operative Societies Registration Act) the society you are dealing with is registered.

 

Then go through the Memorandum of Association and/or the bye-laws of the society for the provision to deal with in case of violation of rules by any member of the society.

 

In the Societies Registration Act, 1860, Refer to Section 6 which provides for suits by and against societies. With respect to who the complant may be made if the bye-laws are silent then Registrar of Societies has powers to enquire into the allegations by or against the society/members.

 

If even after the intervention of the Registrar, the problem is not solved then you can approach the Civil Court within whose jurisdiction the society is registered.

 

 

Thank you, Mr Thukral and Ramkrishnaji, I was refering to co- operative housing society which registered, but the bye-laws also refers that matter can be taken to co-operative courts, and civil courts.

Dear Sir, I am treasurer of a cooperative housing society in Kharghar. Our society has adopted the system of charging defaulters at the rate of 18% per anum and on receipt of cheque we first recover the delayed payment charges (DPC) and then the remaining amount is adjusted against the outstanding principal. Our accounts are audited every year and the auditor too has not picked any holes in this policy which has been adopted by the society. However, one of the member who has been a defaulter is unwilling to accept this and sends cheques as per his whims and fancies. My query is whether we are right in first recovering the delayed payment charges? Will be helpful if you address the query so that the society can take appropriate action in the matter.