Adv. R. P. Rathod. emphasis that “It is the duty of every member to pay dues properly & on time for ensuring the smooth functioning of the society.” Generally people living in (Co-operative Housing Society) CHS are well aware of the fact that they are required to pay their regular contributions towards the expenses and expenditure incurred for running the day-to-day affairs of the society. Remember, a CHS is never formed for making profits instead it collects and disburses the contributions from its members towards common facilities and services enjoyed by its members.
These members do not understand that the society is formed by like-minded people for enjoying certain benefits that can be achieved in a cumulative fashion. There are habitual defaulters and some deliberate defaulters, apart from those few who are misguided and join the forbidden group of defaulters for unwanted reasons that need to be sorted out.
Realising the difficulties faced by the Managing committee members of the society, Adv. R. P. Rathod. states that the following punishment and the penalties are prescribed for the defaulters. The fact is that one cannot stop paying his/ her share towards the regular contributions towards the maintenance of the society as per the provisions of the byelaw. The Law is very clear on this subject that the member should not hold the payment for any reasons. There are various legal remedies to solve the problems of the member but he should not hold the payment or use the same as pressurizing tactics.
Adv. R. P. Rathod. says that it is very important that a defaulter of a CHS should understand the problems, complications and consequences associated with him.
If a member fails to pay the dues after issue of the notice for a period exceeding three months is termed as a defaulter as per the Maharashtra Co-operative Societies Act 1960 and as per Bye-laws of the society. Every member of the society also will call him by this name, which is an insult to the member.
A defaulter as termed above cannot contest the election to be held for the post of Committee Members as per the provision of the Bye-laws and Election Rules.
A persistent defaulter can be expelled by the society as provided in the Bye-laws and the Maharashtra Co-operative Societies Act 1960. Even the High Court has held that a persistent defaulter can be expelled.
(4.) Eviction from the flat:
If the member is expelled and the same is approved by the registrar and other higher authorities, the concerned member is evicted from the premises to pay society dues.
(5.) Attachment of the flat:
After obtaining the Recovery Certificate from the Registrar the Special Recovery officer, shall make all the arrangements to auction the premises, which again will be at the lowest price. This not only insults the member but he will also make him suffer financially.
The concerned member will have to undergo lot of embarrassment. Once the respect and goodwill is lost it will be very difficult to regain.
Dues attract interest @21% p.a., which is an exorbitant penalty to be paid by the defaulter member, Adv. R. P. Rathod. terms defaulting maintenance charges as good as defaulting a credit card payment.
The concerned defaulter will have to defend his legal cases at his own cost. Further any expenses incurred by the society in filing the cases will be recovered from the concerned member and the same will be included in the Certificate of recovery given by the registrar. Upon granting such Recovery Certificate the Stamp Duty, Court enquiry fees and surcharges will have to be paid by the respective defaulter member.
Further a portion of the Legal expenses incurred by the society will be included in the share of contribution given by the defaulter member. Besides, attending the Court cases and Registrar's office is a time-consuming process. Last but not the least; you will have to pay all the dues along with interest.
At every general body meeting and Committee meeting, discussions about the recovery of dues from such defaulter will be held. It is better to pay society dues and fight for other disputes.
If the defaulter has some complaints or grievances against the society or Managing Committee, his said complaints will not be entertained by the Office of Registrar unless and until he pays the society dues.
If in the General body meeting the members frame & approve certain rules with respect to parking and resolve to not to allow or allot parking to a defaulter. Then in such a situation he/ she would be deprived from parking his/her vehicles in the society.
The concerned defaulter member cannot avail of any loan which he wants to take by mortgaging his premises on which dues are pending, as the financial institution will always ask for a No dues Certificate, which would make him run pillar to post and solicit before the Office bearers for issue of No dues Certificate.
(13.) He cannot Sell his premises:
A defaulter member cannot sell his/ her flat unless and until he clears-off the dues. As the society would refuse the NOC & also to transfer the premises unless & until the dues are cleared.
If he wishes to rent or sub-let his premises the society might not let him permission to do so unless and until he pays all the dues.
Thus I recommend all members of CHS to pay the dues of the society always on time. If there is any dispute on extra charges, the same can be claimed as refund by making an application to the Office of the Registrar, Co-operative societies. In such cases, at least the unnecessary expenses on surcharge, Court fees, Enquiry fees, interest burden will be reduced also all the disadvantages discussed hereinabove will not hold for the member concludes Adv. R. P. Rathod.