Sushil Wagh (LAW STUDENT) 11 December 2011

Society dues not paid

SIX YEARS AGO A BUYER BROUGHT A FLAT IN THE SOCIETY. NOC WAS GIVEN BY THE SOCIETY FOR REGISTRATION AND LOAN FROM BANK. THE BUYER APPLIED FOR MEMBERSHIP, DUE TO CERTAIN ANOMALIES THE FLAT WAS NOT TRANSFERRED. THE BUYER WAS REQUESTED TO CURE THE ANOMALIES AND APPROACH BACK TO THE SOCIETY. THE BUYER EVEN AFTER 6 YEARS HAS NOT COME BACK TO THE SOCIETY AND ALSO NOT PAID THE PENDING MAINTENANCE DUES OF THE SOCIETY.IN THE MEAN TIME THE LIEN LETTER HAS ALSO NOT BEEN SEND BY THE BANK TO THE SOCIETY.

NOW THE SOCIETY HAS APPROACHED THE BANK TO SAY THAT SINCE THE SHARES OF THEIR CLIENT HAVE NOT BEEN TRANSFERRED IN HIS NAME AND ALSO HE IS NOT THE MEMBER OF THE SOCIETY THE SOCIETY CANNOT TAKE CARE OF THE LIEN FORCED ON THEM.

THE SOCIETY HAS ASKED THE BANK TO EITHER GET THE FLAT TRANSFERRED IN THEIR CLIENTS NAME OR THE SOCIETY WILL NOT BE RESPONSIBLE FOR THE LIEN.

WOULD THIS ACTION BE RIGHT ON THE PART OF THE SOCIETY TO GET ITS DUES AS IT CANNOT APPROACH THE SOCIETY REGISTRAR AS THE CLIENT IS NOT A MEMBER ?

SUSHIL WAGH

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6 Replies

Kanaksinh P.Boda (Educationist/Lawyer) 11 December 2011

Why the anomalies were not rectified while issue NOC ? Why the Society raised this issue while considering membership?

The person concerned has acquired a status of 'deemed membership' under the rules and therefore considering him a non member will bounce back on Society.

However, for pending dues, a suit of recovery can be filed against defaulter in the coperative court.

even if he is not considered as a member, the society can start recovery process against him.

There is nothing wrong in informing the Bank of the status of the mattter and disown the responsibility in lien recovery, in the interest of the society.

Dr J C Vashista (Advocate) 11 December 2011

Since local laws are applicable in Cooperative Societies and differ on certain subjects, you are required to intimate which state the case pertain?

The society has to move to The Registrar Coopertive Societies for arbitration and recovery of maintenance dues.

Lien of bank shall also have first charge on the flat, please look into this aspect as well.

Sushil Wagh (LAW STUDENT) 14 December 2011

Dear Kanaksinh Boda ji the NOC was given for the stamp duty registeration of the flat addressed to the Registrar of stamp duty and the Bank NOC was given to take loan.

Kanaksinh P.Boda (Educationist/Lawyer) 14 December 2011

The Bank will insist upon cooperation of the Society as long as the flat is a part and parcel of the Building under Society's care. It will be appropriate to file suit for recovery of dues irrespective of member or otherwise. The actiontaken at present may not bring desired results.