Intrest on delayed payment in society
3 months ago
I live in Maharashtra. First of all society has installed metal sheet on the roof of a building and for this they took 20 thousand rupees from each member, but that roofing sheet was of cheap quality and became useless, then they changed the roofing sheet of the building and for this they Took 74 thousand more rupees from each member. But I delayed the payment because at that time my father died so I did not have money so after some time I paid the money but they charged 14 thousand interest on that 74 thousand so total came to 88 thousand but I paid only 74 thousand But now they are forcing me to pay interest of 14 thousand, is there any solution for this?
A.Dear Client,
Typically, apart from the monthly maintenance charges, any additional capital or one-time expenses are covered by the society's corpus fund or reserve fund. If these funds fall short, a resolution is passed in a meeting, requiring a majority vote to collect the necessary amount from residents to address the shortfall. In the event a member fails to pay their contribution by the deadline, penal interest cannot be charged, as this would be deemed unfair trade practice by the society. In this situation, it's advisable to bring the matter to the attention of the Registrar/Dy. Registrar of Cooperative Societies or the Cooperative Court for resolution. If a resolution is not achieved, escalating the grievance to the Consumer Forum within two years from the date of the cause of action can be considered to seek appropriate relief in the matter.
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Typically, apart from the monthly maintenance charges, any additional capital or one-time expenses are covered by the society's corpus fund or reserve fund. If these funds fall short, a resolution is passed in a meeting, requiring a majority vote to collect the necessary amount from residents to address the shortfall. In the event a member fails to pay their contribution by the deadline, penal interest cannot be charged, as this would be deemed unfair trade practice by the society. In this situation, it's advisable to bring the matter to the attention of the Registrar/Dy. Registrar of Cooperative Societies or the Cooperative Court for resolution. If a resolution is not achieved, escalating the grievance to the Consumer Forum within two years from the date of the cause of action can be considered to seek appropriate relief in the matter.
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A.Dear Client,
A society is not a money lending agency to charge interest on delayed payments by a resident member until and unless they borrowed the capital on interest from other sources provided the same is permissible under the bylaws of the Society. Usually, other than the monthly maintenance charges, all other capital or one-time expenses are met from the corpus fund or reserve fund of the Society, and if it falls short of budget then a resolution is taken in a meeting on a majority of the vote to collect a certain amount from the members resident to meet the shortfall. So, if a member fails or delays paying his contribution projected for the purpose by the deadline, he cannot be charged with penal interest for the delay which amounts to unfair trade practice on the part of the Society. In the prevailing situation, you need to bring the matter to the notice of the Registrar/Dy. Registrar of Cooperative Societies or the Cooperative Court for a resolution in the matter failing which you may escalate your grievance before the Consumer Forum within two years from the date of cause of action seeking appropriate relief in the matter.
A society is not a money lending agency to charge interest on delayed payments by a resident member until and unless they borrowed the capital on interest from other sources provided the same is permissible under the bylaws of the Society. Usually, other than the monthly maintenance charges, all other capital or one-time expenses are met from the corpus fund or reserve fund of the Society, and if it falls short of budget then a resolution is taken in a meeting on a majority of the vote to collect a certain amount from the members resident to meet the shortfall. So, if a member fails or delays paying his contribution projected for the purpose by the deadline, he cannot be charged with penal interest for the delay which amounts to unfair trade practice on the part of the Society. In the prevailing situation, you need to bring the matter to the notice of the Registrar/Dy. Registrar of Cooperative Societies or the Cooperative Court for a resolution in the matter failing which you may escalate your grievance before the Consumer Forum within two years from the date of cause of action seeking appropriate relief in the matter.
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