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Sandeep Jani (service)     03 March 2010

Managing Committee's power to write-off outstanding dues

I am a member of a co-operative housing society in Mumbai. One of our society's member was not paying maintenance bill and there is an amount of around 60,000 outstanding as Interest on his total outstanding since long. Now that member has sold the flat for a handsome amount, but he is able to convience the society's managing committee due to good relation with the Secretary to Write-off the outstanding Interest amount and get the Flat transferred in the Buyer's name. Is this within the Power of managing committe to waive such amount when they have recovered such interest from other defaulting members? Even the amount is reflecting in the Society's balance sheet since last six years. If managing committee transfer the flat in name of buyer, what steps can be taken by members of the society??


Learning

 2 Replies

V. VASUDEVAN (LEGAL COUNSEL)     03 March 2010

The Managing Committee has no power whatsoever to write off the member's claim. In fact as a prudent committee, it ought to have to initiated recovery proceedings against the defaulting member in the first instance. At least when he transferred the Flat, the Committee ought to have recovered the money and full without which the transfer is not complete. In fact the Registering authorities insist on a specific written no objection from the Managing Commitee which could not have been issued until clearance of dues. Each and every MC Committee member and the MC collectively is guilty of laches. You may prefer a complaint against them with the Registrar for appropriate action.

vasudevan

ramani (Director)     11 March 2010

All MC members have to sign an M-20 bond under theMCS Act 1960.Has your MC members signed the bond. If they have signed ,you can proceed against the concerned committee members .Even if they have not ,you can proceed to cancel the transfer since they have no right to effect a transfer. U may proceed accordingly. S Ramani Surakshaa Cooperative Society Management & Solutions lucky201@sify.com

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