Co-op hsg society - major repairs
Tauras
(Querist) 15 May 2014
This query is : Resolved
Society started major repair like Re-plastering of external wall, Painting etc and they started raising additional fund which is being included in the regular maintenance bill without communicating to the member. is it right practise? Hence some member Paid full maintenance bill i.e. Maintenance + additional repair fund which is being included in the bill. But some of the member denied and paid maintenance amount only i.e. excluding repair fund. Now, after 6 months society has started charging Interest @ 21% P.a. How can society charge interest on additional repair fund since its not communicated to the member. Society work is still in progress.What is the procedure which society should require to follow before carrying out any major repair work in the bldg.Please advice on the same urgently.
Abdul Latif
(Expert) 15 May 2014
Your querries is regulated regulated by bye laws of your society. Please read the bye law of your society.
Generally, the society or management committed take the decision of repair etc by passing the resolution at their meeting and circulate the decision of society or management committee to the all members of the society. If you did not get the notice of resolution then you should the society for the resolution authorising them to carry out the repair works. Please note that this resolution must be passed by majority or 3/4 as per the bye law of the society
Rajendra K Goyal
(Expert) 15 May 2014
Consult the bye laws of the society, if the provisions are not followed, move to cooperative court.
Dr J C Vashista
(Expert) 15 May 2014
Maintenance of society (especially)common area is the responsibility of Managing Committee, which collects funds from its members after due deliberation. Except, at times when it is very urgent in nature and it cannot be awaited till next GBM,the MC decides and intimates the members individually.
Otherwise, generally such expenditure is being projected and communicated to the members before collection of money for any major project, after being approved by GBM.
The decision of GBM is supreme and final.
Anand Bali Adv.
(Expert) 15 May 2014
I do agree with the expert Dr Vashishtha.
Here I just want to make a submission that without coming by a resolution passed by the member body meeting as required by the By-laws of the society specific no such charges can be levied on the members.
Here, there must be some members body meeting be called for the purpose and in that a resolution must have been passed for the general area maintenance with a estimated budget also by calling of the tenders of different works by a public notification.
Dr J C Vashista
(Expert) 16 May 2014
Thank you Mr Shankar Narayanan.
1. Respectfully I disagree with Mr. Anand Bali on the point of "some members body meeting be called for the purpose" as there is no provision in either of the Act (any of the State Act), Rules or Be-laws adopted by society for some of the members be called and resolution can be passed.
2. There is a Managing Committee of the Society conferred with all the powers of GB for performing its duties/ responsibility, which is being placed before the house i.e., GB in its annual meeting.
3. However, in exceptional circumstances Special General Body Meeting can be called by RCS or MC or a specified number of members through RCS (as per State Cooperative Societes Rueles)for specific purpose such such election of MC, adopting no confidence motion against MC etc.
4. Besides this, "calling of the tenders of different works by a public notification" is again misconceived prepostion since it depends upon the nature of repair work/ maintenance/project required to be undertaken by the MC, which is a procedural aspect and not a policy matter to be decided by the General Body of the Society.
Tauras
(Querist) 16 May 2014
First of all thanks to all for your valuable feedback.
But my query is still open, is it right to charge interest @ 18% p.a. on repair fund whereas maintenance is paid regularly excluding repair fund amount.Society did not communicated to the memeber and they decided internally and just added repair fund in the Maintenace bill. What i should require to check and confirm with the society whether they have done as per bye law or not. Please advice
T. Kalaiselvan, Advocate
(Expert) 16 May 2014
@Author: Your query has been properly answered by expert Dr. Vashista as well as expert Mr. Bali. It is you who has got to confirm the bye-law of your society/association, visit the office of the president/chairperson of your association, demand for the bye laws and point out your observations on the burning issues is they have not been in conformation to the set of rules meant for the purpose.
Dr J C Vashista
(Expert) 17 May 2014
In reply to your query for charging of interest @ 18% p.a. on repair fund, despite the fact that maintenance is paid regularl) excluding repair fund amount, if a bill has been raised against a member but the member defaults/fails to pay the bill, the Society is well within its rights to charge penal interest as provided in the Bye-laws adopted by the Society.
No demand/bill can be raised by the society in the circumstances explained hereinabove.
It is next to possible that the Society (MC) did not communicate to all the memebers regaiding decision taken internally (as alleged by you) and just added repair fund in the Maintenace bill. To my mind (you may disagree) there is some communication gap between the society and your-self, find it out.
Tauras
(Querist) 19 May 2014
Thank you sir...
V R SHROFF
(Expert) 19 May 2014
Well advised by Dr j c Varshista
