2) issue legal notice to flat owners to pay arrears of maintenance
2) if they fail to pay file suit to recover the outstanding dues
Non Payment of Maintenance by apartment owners
What can an association do recover maintenance charges from non-cooperating residents? In our society there are apartment owners who have not paid the maintenance for a very long time. How do we recover the money from them? For few residents there is lack of fund to maintain the property month on month. Every month the association has to literally beg for the maintenance and it is getting difficult for us to sustain. The association feels pity for the residents who are paying in time and not getting the benefit out of it. Need suggestion from respected team here!
Asked 6 years ago in Civil Law
20 Answers
1.The association can take coercive measures to put pressure on the defaulting flat owner but the same must not be beyond the provision of law.
2. For example the defaulting member can be deprived of getting common facilities like access to gym, swimming pool,club etc.but in no circumstances essential services like electricity/water supply can be disrupted.
3. So act accordingly.
Hi,
Please see the provisions of bye laws of the society which must have provided the actions needed for defaulting owners.
1. If the CAM charges are outstanding for 6 months the common services must be stopped.
2. The defaulting owner will be barred from contesting any election of the society.
3. The transfer of the property will only be entertained after the payment of CAM charges along with the transfer charges.
4. Society may file a civil suit for recovery of the charges and the legal expenses in this regards.
5. If bye-laws are not provided in such a way to deal with defaulting owner, must be amended in this regard by 2/3rd majority.
Thanks
First serve those a notice to compliance the norms of the society.
Secondly, wait for 15 days.
Thirdly and lastly, do what your norms say, if objected by the non payers tell them to pay.
Stage1-Placing their names in notice board
Stage 2- Cut down amenities
Stage 3 - Strict community by-laws to be framed.
Hi, the association can file a recovery suit against the residents who are not paying the maintanace .. To put more pressure on such residents the RWA can also restrict them from providing the basic facilities .
As per the agreement to sell and the sale deed, it has been mentioned clearly that the purchaser should not at anytime, deny paying of the maintenance charges to maintain the common areas, gardens, pathways, etc of the property. Basis this clause can't the association charge and put penalty on the defaulter? Also the rules and regulation of the property which has been passed by 2/3rd majority of the elected association members also has the clause where stern action can be taken like disconnection of electricity and water connection for non paying residents of maintenance. Can we take action basis this?
Asked 6 years ago
Yes, for sure but keep one thing under consideration that it should be signed by them (agreement).
And if they call the police or other authority then show them the agreement and notice copy, and also no individual is doing this you all been the society doing it, so don't worry.
Good Luck
You can act according to your bylaws
Hi, yes you can proceed with taking such action .. Only then a reasonable pressure can be put on them ..
Clarifying: When we say agreement to sell and sale deed, its the same which the residents have signed when they were buying the apartment from the builder. The society rules however was made/prepared by the elected members of the association and the executive committee members.
Asked 6 years ago
1. You may issue them the notice for payment of arrears, if they fail to deposit the outstanding payment initiate the expulsion proceedings against the defaulting members. The same has to be done after taking permission from the registrr of Societies
If there is a clause of taking action like disconnection of basic amenities then you may defined go ahead and take the same.
Regards
Society rules so framed are valid and you (MC) is at liberty to take any action at par with such rules.
Regards
1) you can recover interest for delay in payment of maintenance charges
2) the rate of interest should be as per your bye laws
3) electricity and water are essential services
4) cannot be disconnected by the association for defaulters
As mentioned earlier society cannot disconnect electricity and water supply
I may repeat under no circumstances the association can disconnect water or electricity connection to the defaulting member.If they do the office bearers can be criminally prosecuted.
Come out with a list of defaulters and publish the same. Through this list/notice, call upon the defaulters so clear their dues forthwith, failing which they'll be expelled from the Society.
Repeat this exercise a couple of time before initiating the explulsion proceedings before the Registrar, Societies
If there's clause in the society byelaws empowering the society to disconnect the facility such as water and electricity, take recourse to this.
If a resident has not paid his maintenance due till the decided due date, you may give a written notification of 12 days extra to make the payment, and then a grace period of 3 days.
If still not paid, discuss with the Management Committee and send a notice to the defaulter.
Post this, you may pass a resolution during an association meeting and send a legal notice to the defaulter after consulting an advocate.
An interest of 12% per annum may be charged on the default amount from the due date to the payment date.
After this, committee may withdraw community borne facilities such as tanker-water, or generator power supplied during a power-cut, or both. In this case, re-connection of services shall be made only if and when full default amount has been paid along with interest incurred. For re-connection of services, defaulter has to additionally pay some amount as penalty.
The above are few suggestions to initiate action to recover the maintenance amount due to the association and not provided in any law.
Also the rules and regulation of the property which has been passed by 2/3rd majority of the elected association members also has the clause where stern action can be taken like disconnection of electricity and water connection for non paying residents of maintenance.
Can we take action basis this?
Metrowater, sewerage connections are common benefit that all apartment owners are entitled to. A flat owner purchased the flat through a registered sale deed and was entitled to enjoy the facilities of common areas provided to the apartment.
The disconnection of water supply is a deprivation of the fundamental right to livelihood guaranteed under Article 21 of the Constitution.
The society/association was formed for the benefit of all apartment owners and each one was entitled to enjoy all common facilities.
The association is not entitled to disconnect the basic amenities for the members who defaulted in the maintenance payment.
It is open to the association to demand the same from the defaulting member in accordance with law, as provided in the bye laws of the association.
When we say agreement to sell and sale deed, its the same which the residents have signed when they were buying the apartment from the builder.
The society rules however was made/prepared by the elected members of the association and the executive committee members.
The society/association , if a registered body, has to follow the bylaws as formatted by the government/registrar of societies in this regard and cannot frame their own rules.
The rules or bylaws should be in accordance to the Apartments owners association act or any other prevailing law by which the association has been formed.