Deepak K. (Executive) 10 April 2013

Need help on unjustified interest on hsg sty dues.

Dear Sir/Madam,

My pensioner mother is holding ownership of flat in a coop Hsg. sty at Meera Road East. Sir, I would like to sought your Advice on subject.

That, since 2006 my mother was facing heavy leakage problem in her bedroom wall after communicating verbally several times and in written twice with the society committee so far. They acted passively to bring solution to it until 2012. Heavy leakage problem was due to repairing/ plastering carried out in 2005. Thereafter new committee formed thrice since 2006 until Jan2013 but many time they refused to accept a written letter from my mother for requesting repair of above said heavy leakage. Society committee never acted on her verbal request time and again whenever secretary and chairman use to meet her in the society premises.

There is no other platform address such issues in society committee except meeting in AGM. There is no suggestion communication box or meeting platform for society members address their problem in all these years.

AGM happened 3 times since 2007 to 2013. And new committee elected. However, No elected members willing to cooperate secretary elected in 2007 and 2008 and society members problems went unheard during these time. The committee was sort of paralyzed and inactive. The committee elected in 2009 have not taken AGM until 2013. As they publically announced in the AGM meeting held in Jan 2013 that there was no time with them to call AGM. The balance sheet presented was fabricated and the "Sataynarayan Pooja" expenses were shown in the balance sheet when the said Pooja was not performed since 3 years. Which is a case of misrepresentation of account and which was expressed by the members attended AGM in Jan,2013. There is a scope for doubt for accounts presented since 2007 are appropriate.

My mother was regular on paying maintenance dues until May 2006. But being neglected by committee she had stopped paying dues since June 2006. as it is hard earned money paid from her only income source pension of Rs 3000/-PM.

In 2009 Upon insisting by newly elected committee about dues and assuring her verbally to look into her leakage problem and waiving off interest until May 2010. She paid a lump some Rs 25000 (half )against unpaid dues of around Rs 50000( figure including interest@ 21%). This new committee assured her provide statement of account since May 2006 and assured her provide interest free amount for final settlement soonest. But this turn out to be eye wash and nobody seems interested as thereafter whenever she use to reminded about statement and interest free figure for final settlement, they use to give her blank assurance but nothing has been produced as yet . The only good thing this committee did is they finally repaired the leakage prone wall externally in year 2012 . to that, She is yet to test the repairing in coming monsoon. This was done after carrying out structural audit but nobody taken in to confidence for the repairing work expenses.

However, Keeping in mind that it is not good in cooperative interest to hold the dues. She wanted to clear it but without a interest part as it is not her fault that nobody was interested in considering her problem and interest on dues taken its own course of loading on her unpaid dues. Knowing well that keeping pessimistic attitude to the solution, society will earn extra and thus committee does not want to take concrete action. However my mother use to regularly deposit society dues Rs 500 /- in her bank account from her Rs 3000 /- monthly pension. The reason which she could pay Rs 25000/- when the new committee assured to look into.

Kindly advise how she can avoid interest legally and be regular now . Her problem is solved in year 2012. But committee is not talking about any interest waiving as they have promised earlier.

Thanks

Deepak K.

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3 Replies

S R SHETTY (MANAGER - LEGAL) 30 October 2014

If it is ascertained that the leakage is from outside, then Society has to rectify the same. General body can waive interest, as a special case, but this should be taken up in AGM. If Committee does not take up in AGM, then the Member should take up in AGM. Member can not hold dues of society including interest thereon. Normally Societies do not waive interest, as it becomes a precedence in the Society. If already cleared all dues, then fine. If not paid, suggest to take up in next AGM.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 06 November 2014

There are a number of complaints. It is not possible to club them together and give a single solution. Each complaint has to be considered separately and the solution/or opinion given. 1. Leakage: The causes for a leakage can be one or more of several reasons and the responsibility can be fixed only after the reasons are determined. In your case it appears that it was the responsibility of the Society to repair the leakage. if the Society did not discharge its responsibility the member can complain to the Registrar or go to court. Stopping of payments cannot be resorted to. 2. If AGM’s are not held regularly nor are elections held, a member can complain to the Registrar. The Registrar has powers to set aside the non-performing Managing Committee, appoint an Administrator and call for elections under the auspices of the Registrar himself. When all those things were going on, if the leakage was not attended to, I do not know who exactly could be held responsible. 3. If balance sheet and accounts were fabricated, it would be a criminal offence. What was the statutory auditor doing? How did the members pass the accounts at the AGM’s. If the AGM’s were not held the accounts are still open. Again one has to go to the Registrar only for remedy. 4. Societies generally adopt the mercantile system of accounting. Under the system income accrued during any year but not actually received can be used for the expenditures. If interest receivable have been booked, applied for expenditures in the past years and thereafter the accounts audited by the statutory auditor and passed by the General Body at the AGM, it is not possible to reverse those accounts. How can one get back an amount which has already been spent? Do not ask if the amount was not actually paid how the expenditures were met. Though your mother was not paying for several years, the Society was still running. The Society would have been running on excess amounts paid by other members or utilizing the funds lying in the corpus funds. 5. Waiver of penal interest cannot be demanded. If at all such waiver is to be given, it can be done only by the GB. If the GB should consider it, either an EGM for the purpose should be called or it should be included as an Agenda item of an AGM. Either is the prerogative of the Managing Committee and if the MC does not oblige the member can do nothing. If things were not happening in a Society as one would have wished that it should have been, no individual or group of individuals can be blamed. The responsibilities fall on everybody including your mother.

Md Rakibul Islam 31 January 2021

Thanks for sharing the article, and more importantly, your personal experience mindfully using our emotions as data about our inner state and knowing when it’s better to de-escalate by taking a time out are great tools. Appreciate you rea firmwarexbd ding and sharing your story, since I can certainly relate and I think others can too