I need you advice . I have purchased a resale flat in Navi Mumbai Maharashtra . I did an sale agreement with the seller in November 2015 . I had given copy of sale agreement to society and demanded a no due certificate to which society had issued provisional NOC stating that property is mortgaged with Union bank of India. In NOC it was written that there is no due pending on the property . In January Owner submitted the loan closure letter issued by Union Bank Of India to society and demanded final NOC and No due certificate . and we received the same . I moved in to the property on 21st of january . I have received demand letter from society for “Building repair fund 2016” , Sinking fund for 2014-15, Sinking fund for 2015-16 . I asked the manager and secretary why this backdated demand are generated after issuing NOC . to which I got reply that it was decided in AGM which was held in August 2015 and I will have to pay it before due date .
My queries are as below
1) If there was due on flat can society issue no due certificate and NOC .
2) Do I need to pay the dues as the dues are for previous financial year .
3) Can the society demand backdated dues.
4) What should I do to resolve such issue as I am new to society and don’t know any one.
I C Naik
For collecting funds from the members Bye-Laws cast duty on managing committee
under Chapter IX. LEVY OF CHARGES OF THE SOCIETY having Bye-Law Nos 65-71.
The Committee is obliged to apportion all society charges as listed under Bye-Law No 65 on each and every flat on the basis fixed under Bye-Law No 68. Mark the basis of allocation of contribution under enquiry.
- Sinking Fund: As provided under the bye-law No. 13(c).
13 c.” The Sinking Fund at the rate decided at the meeting of the general body, subject to the minimum of 0.25 per cent per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land.”
Housing societies are run on funds contributed by members in accordance with provisions as per Bye-Laws. It does not have any other income yielding source and does not have a profit motive. So collection of fund is the most critical responsibility of the Committee undoubtedly.
It is no doubt that members of managing committee are voluntary service providers to the society and to its members. Even then in the matter of responsibility towards society matters is imposed jointly on all members and there is a statutory provision as well as a provision in Bye-Laws as to how to treat the losses arising to the society on account of acts and omission or negligence on the part of the managing committee. It is undoubtedly a failure of the Committee to raise demand for Sinking Fund 2014-2015 along with the demand raised for “Building repair fund 2014-15” The Committee having failed to raise the demand in a timely manner the member who was liable to contribute the same has escaped the burden. The Committee has now raised that on the member who was not liable to pay that as he was not a member for the period for which funds are demanded. This burden can not be thrust on the person who was stranger at a relevant time.
So you are advised to write to the Chairman/Secretary that in view of following provisions in the MCS Act 1960 and in Bye-Laws the contribution to Sinking fund 2-14-15 so demanded now needs to be shared by the members of the Committee.
Section 731AB reads as :
(1AB) The members of the committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the society. The members of the committee shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the society.
Provided that, before fixing any responsibility mentioned above, the Registrar shall inspect the records of the society and decide as to whether the losses incurred by the society are on account of acts or omissions on the part of the members of the committee or on account of any natural calamities, accident or any circumstances beyond the control of such members:
Bye-Law No 137 reads :
The Members of the Committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the Society. The Members of the committee shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the Society.
If the Committee does not agree then write a letter to the Deputy Registrar of cooperative societies of the Ward in which your CHS is registered. It is possible that the Registrar of cooperative societies may not heed to your request, so you can file a complaint to the District Consumer Grievance redressal forum of your district to the effect that the Committee is guilty of deficiency in service to the extent they fail to collect due fund amount from the member who transferred his flat. This will not cost you a lot. You need not hire a lawyer. You can file a complaint in your words.
