Levy of Charges Of The Society

Part 3

v     Demand Notice/Bill

As per Bye-law No.70, the Secretary of the society shall prepare a demand notice in respect of the charges of the society payable by members on the basis of the society Bye-law No.69(a) and issue the same to all the members on or before the date fixed by the Committee in that behalf. Every Member of the society shall pay the amount mentioned in the demand notice in full within such period as may be fixed by the committee. The demand notice/bill can be issued monthly, bi-monthly, quarterly, half yearly or yearly.

v     Interest, rebate/discount

(iii)               Interest As per bye-law No.71, a member shall be deemed to have committed default in payment of the charges of the society, if the payment mentioned in the demand notice is not made within the period as prescribed under Section 73 FFI of the Maharashtra Co-operative Society Act, 1960. As per the Section, the demand notice/bill amount is payable on presentation of it or on completion of 30 days on availing of the service by member, whichever is earlier. The Sectary of the society shall bring the cases of defaulters to the notice of the Committee for taking further necessary action.

As per Bye-law No.72, a defaulted member shall be required to pay simple interest at such rate as is fixed by the general body of the society at its meeting, subject to the maximum of 21 per cent per annum, on the charges in respect of which the member has defaulted, from the date of default until the payment.

(ii) No Validating of charging compound interest or penal interest There is no provision under the Maharashtra Co-operative Societies Act, 1960, Maharashtra Co-operative Societies Rules, 1961 or under the Model Bye-laws, allowing the Co-operative Housing Society to charge either compound interest or penal interest and thus, a Co-operative Housing Society cannot do so, even if the society passes a resolution to the said effect, at the general body meeting/committee meeting, by whatsoever majority. The Registrar may not allow such type of amendment in the Bye-laws. (i.e. even after following the due procedure, as laid down by the law/Bye-laws).     

(iii) No Validity of giving rebate/discount to those members who pay their dues in advance

At present, there seems to be no specific provision in the Maharashtra Co-operative Societies Act, 1960, Maharashtra Co-operative Societies Rules, 1961 or the Model Bye-laws, thereunder, which would enable the society to give any rebate or discount in the above case. Hence, the same may be termed as illegal. However, societies can incorporate such provision, whereby they can give discount/rebate which shall be at a nominal rate of simple interest, by amendment, the society can give such rebate/discount. If any advance amount is taken by way of deposits or loans from the members, the same may be covered by the provisions of Bye-law No.11 of the Model Bye-laws, provided the conditions laid down therein are observed.

v     Ground Rent

It is to be collected from all the members of the society. In case of Bai Puribai Mohanlal Shah v. Swantanra Bhavan C.H.S. Ltd., [1965 C.T.D. 486], it was held that upper flat owners in a society cannot say that ground is being used by the ground floor occupants and that ground rent is not payable by them. The ground floor sustains all the other floors constructed upon on it.