Recovery of Issues & Replies

Part 4

v     Issues & Replies

      Can the Recovery Certificate be challenged by filing a dispute under section 91 of the Maharashtra Co-Operative Societies Act, 1960?

A.      Recovery Certificate cannot be challenged by filling dispute under section 91 of the MCS Act. This was observed by the Hon. Justice A. M. Khanwilkar at Bombay High Court dismissing disputes by the Respondent Mr. Dinkar Bhimrao Raut against Kedarling Vikas Seva Society Ltd. Even as per Circular No. 1793/135887/PK 234/14C dated 16^th April 1994. No stay is to be granted in respect of statutory payments (viz. municipal taxes, water taxes.  Amount to be recovered for the purpose of maintenance of the society). It should be told that till all such payments are remitted to the society no stay will be granted.

      Is it true that complains of members are not entertained by the Registrar till they pay their regular outgoings?

A.      Govt. of Maharashtra Co-operation & Textiles Development has issued Circular No. Co.Hsg.Scheme/Cir.No. 365/14 dated 2^nd November, 2002 to all Registrar Offices for handling of complaints of members of the Societies who are not paying their monthly charges to the society. The gist of the circular is as under :

(1)   Co-operative Housing Society Members should not stop the payment of monthly dues under any reasons/excuses.

(2)    If any member has any difference of option over monthly charges with Managing committee, it should be solve by giving application to the authority concerned. The Registrar should take care to solve the query received from member within one month.

(3)   If the authorities concerned say that monthly charges are more, the excess amount should be returned to the member as per order of the concerned authority or it should be deducted from monthly dues by the society managing committee.

(4)   Before taking into consideration the complaints of the members who are not paying their monthly charges, The Registrar should give instruction to such member to clear firstly their dues to the society. It is directive of the Government not to entertain complaints of members until all monthly dues are paid.

      Can the society disconnect essential services like water supply, use of lift, lifting garbage etc?

A.     Essential services are necessary for the occupants. It is not correct to disconnect them. There is a simple method for recovering dues. The other members can socially boycott the willful defaulter to compel payment but essential services should not be disconnected.

      Can a Society recover dues of the Adhoc Committee prior to the registration of the Society?

A.     The society acquires the right to collect amount from the defaulter only after the society is registered under the provisions of the MCS Act. Therefore if there are any dues of the Adhoc Committee, no action under section 101 of the MCS Act or in the Co-operative Court for the period prior to the date of registration of the society can be taken.

      Do the provision of the law of limitation will be applicable for the recovery from members of a housing society?

1. If a member is in default and if recovery proceedings are initiated against him, then the provision of the law of limitation will be applicable. It is held by Bombay High Court on 7^th October, 2003 in case of Versova Gardens CHS Ltd. v. Division Joint Registrar (C.S.) Mumbai.

Co-operative Societies are advised that they should initiate action against the defaulting members before the law of Limitation period, otherwise Co-operative Societies would not be able to take advantage of Section 101 of MSC Act.

In event society has not recovered the dues from the members within a period of three years then in such circumstances the society are advised to file a dispute under section 91 of the MSC Act where the period of limitation is not restricted to three years.