• Society payment defaulters

How to solve such problems. Society payment defaulters. What steps should the society take. 
Please advice.
Asked 3 years ago in Property Law
Religion: Other

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14 Answers

First, please send demand notices to all the defaulting members, on the society's letterhead and duly signed by the secretary or a competent office-bearer (according to the society's bylaws), asking them to pay all arrears of maintenance charges on or before a deadline and putting them on notice that if they do not meet their commitments by the deadline, they will stand to be disqualified as members. After the deadline, you may proceed to disqualify them in accordance with the procedure laid down in society's bylaws. For recovery of arrears, the society has to file a suit at the appropriate court.

Swaminathan Neelakantan
Advocate, Coimbatore
2976 Answers
20 Consultations

Issue legal notice to defaulter to pay society dues 

 

2) pass a resolution on managing committee to take legal proceedings against defaulter if he fails to pay 

 

3) file application before cooperative court for recovery of dues 

 

4) contact a local lawyer 

Ajay Sethi
Advocate, Mumbai
97854 Answers
7936 Consultations

Legal costs vary depending upon lawyer engaged by you 

Ajay Sethi
Advocate, Mumbai
97854 Answers
7936 Consultations

The society if a registered body can send a legal demand notice to the defaulters demanding the arrears of maintenance amount giving them short time to comply with the demands made. 

If they fail to respond or comply with the demands made, then the society as decided in the general or special meeting in this regard, can initiate steps to file a money recovery suit against all defaulter by following the procedures in this regard as laid down in the bylaws of the society. 

T Kalaiselvan
Advocate, Vellore
88056 Answers
2377 Consultations

The court fee for recovery of money will depend on the court fee of the state within which the proposed suit is to be filed, you may enquire the same from the lawyer who you propose to engage for this purpose. 

T Kalaiselvan
Advocate, Vellore
88056 Answers
2377 Consultations

If it's in Maharashtra you can go for recovery proceedings before dy registrar of cooperative societies

Prashant Nayak
Advocate, Mumbai
33128 Answers
215 Consultations

The court fee depends on the claim amount. For lawyer's fees, please consult a local at the place of suing.

Swaminathan Neelakantan
Advocate, Coimbatore
2976 Answers
20 Consultations

- As per the Co-operative Societies Act, Each apartment owner/member shall comply strictly with the bye-laws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended form time to time, and with the covenants, conditions and restrictions set forth in the Declaration or in the Deed to his Apartment.

- Further , failure to comply with any of the same shall be a ground for an action to recover sums due for damages or injunctive relief or both maintainable by the association head or the management committee on behalf of the Association of Apartment Owners .

- Hence, if any flat owner is not paying the maintenance charges, it is open to the association to demand the same from the defaulting member in accordance with law, 

-Further, each member is liable to pay the monthly maintenance charges to the society irrespective of whether the member has not constructed the house in the plot or not living in the house after constructing the same. 

- Hence society can take legal action against the defaulter after sending a legal notice for the same , and if no response then society can recover the amount after filing a recovery suit before the court. 

- Cost of filing suit is depend upon the lawyer to whom engaged.  

Mohammed Shahzad
Advocate, Delhi
14903 Answers
226 Consultations

Water and electricity supply are essential items and cannot be disconnected 

 

Society has to take recovery proceedings against defaulters 

Ajay Sethi
Advocate, Mumbai
97854 Answers
7936 Consultations

1. The notice demanding the arrears of maintenance is to be sent to their respective addresses by registered post of all the persons who defaulted the payment.

2. You cannot disconnect the basic amenities or essential services, however that is not the procedure to recover the arrears of maintenance amount.

3. A suit is to be filed for recovery of maintenance amount after the defaulters failed to respond or not complying with the demands made.

4. For instituting the recovery suit, you may have to obtain permission through a resolution by a majority of members in the special meeting of the association,. 

5. Individual decisions in this regard even if there is a clause permitting the society to initiate recovery action is existing, may not be maintainable. 

T Kalaiselvan
Advocate, Vellore
88056 Answers
2377 Consultations

You will have to go by what your bylaws say in such matters. No society has powers to disconnect water and electricity supplies. The best option will be to initiate legal action for recovery of the arrears.

Swaminathan Neelakantan
Advocate, Coimbatore
2976 Answers
20 Consultations

Dear client, 

Considering the fact that the defaulter notices have failed, you can initiate legal proceedings against them for defaulting in payment. The persons will be considered as defaulters under the specific section under the Housing Societies Act of your state. As for how much a suit like this might cost, please consult your lawyer. 

Thank you. 

Anik Miu
Advocate, Bangalore
10491 Answers
121 Consultations

Hi, you have to file a Suit for recovery of money. Other than that you have no other options.

Pradeep Bharathipura
Advocate, Bangalore
5617 Answers
338 Consultations

You should send it by post. You can paste it directly on door if you can serve through other modes. 

You can't stop water supply it's criminal offence. There is no provision to stop water supply for not paying maintenance. You can only recover it through proper channel. All the aforesaid illegal ways from your side will make you liable for action

Prashant Nayak
Advocate, Mumbai
33128 Answers
215 Consultations

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