Procedure To Recover Maintenance Dues from Defaulters of Cooperative
Housing Society
In
current situation running a society smoothly depends on how much cash reserves
the society has in its bank. Few societies doesn’t feel that much heat as
members are cooperative and paying maintenance bills on time, check .Regular
payment from members makes easier to run society as it doesn’t feel cash
crunches.
However
few societies are exception to this as default by members are keep on
increasing, which make committee members work more difficult to manage.
Recovering the dues from members is complicated task as it also harms the
personal relation with the committee members and defaulter members.
Under
Section 101 of Maharashtra Societies Act (MCS), society can fight the legal
battle to recover due from defaulters.
Society
Committee can follow below procedure to recover dues from defaulter society
member:
1)
Issue a simple letter to defaulter (there is no specified format for this)
which should have the amount dues, period for payment and also a warning
mentioned about “Failuer to make payment, society will make application to
society registrar under Maharashtra Societies Act section 101 to recover the
outstanding dues”.
2)
After the completion of given period on notice to defaulter, committee should
pass a resolution to take action against the defaulter.
3)
Under the section 101, Society chairman and secretary can take action against
the defaulter and has rights to sign all the required documents which they need
to submit to society registrar who will issue the recovery certificate.
4)
After the submission of all the papers from society to registrar. Registrar may
ask for hearing with defaulter member and verify the records. After verifying
and hearing if registrar find the appeal truthful he will issue recovery
certificate to society.
5)
Once the recovery certificate received by recovery officer, he will prepare the
demand notice which will send to Sale Officer and same notice will be attached
to property of defaulter member of society.
6)
Sale officer will visit the flat of defaulter to prepare and submit the list of
inventory of all his moveable property. If defaulter member is still not paying
out standing dues even after receiving Demand notice, Sale officer can seize
the moveable property and can hand them over to Secretary or Chairman of
society for custody.
7) After the seizing auction
date is fixed for auction of seized movable property. If the amount received
from auction is less as compared to dues
then Sale officer has right to auction the flat of defaulter member.
