Guest (n/a) 07 September 2009

Claim of interest by society

Dear Sir,

I have faced a doubt while arguing a case today.

The problem is that whether a Scoeity is empowered or has any authority to claim interest on the maintenance charges for the period prior to the formation of the Society or not.

The maintenance charges were enhanced by the Builder before formation of the Society and my client had asked some clarifiations. Pending clarifications, I had paid only the old maintenance charges. But after formation of the Society, my client had paid complete pending maintenance charges in the enhanced rates. Now the Society is charging interest for the period before formation of the Society. Whether they have the authority for this or not.

Kindly clarifiy.

Yours faithfully

Reply Follow

3 Replies

R.R. KRISHNAA (Legal Manager) 08 September 2009

In the absence of any clause or rules in the Bye laws of the society, the society cannot claim interest. Moreover the society has no right to claim interest as the society came into existence only subsequently.

Viewed from another angle, it can be said that the society has stepped into the shoes of the builder and is claiming the interest and the past pending maintenance charges. If argued in such way the society has right to claim past maintenance and other pending charges.

But if your querry is with regard to interest, my answer would be that the BYE LAWS or MEMORANDUM of the society must contain the provision for claiming interest and penal interest etc etc. Otherwise the society has no right.