I have multiple issues with my housing society in Mumbai and seeking your help from your article. I believe you are lawyer in Mumbai/Pune.
Elections – Notice of AGM was sent to all members but AGM was not held in that day. It was held after 1 week and no notice of new date was given to all members. It was intentionally not sent the notice to some members who were not happy with present members and hence those members were kept away from AGM. Are these elections null and void?
Notice – after the elections, AGM of 2 years were held again without sending any notice to members. What are the rights of members in this scenario ?
Interest – AGM had prescribed 30% interest rate and which is calculated every quarter which puts interest on previous quarter making it even above 30%. Society said that 30% interest is passed in AGM. I guess maximum of 21% of interest can be charged which has to be simple interest. Is 30% compound interest legal?
Due – for some time there was delay in maintenance due to living in other city. We started to pay monthly maintenance for last 2 years and we sent emails to society to provide the dues amount to clear it. But society not given any statement for the dues. Without knowing how much to be paid (with 1 year interest) how someone can pay ? Can society ask for interest for these 2 years for society fault?
NOC for loan – We have to take loan for repairing of house and also for dues but society is refusing to issue NOC for the disputed dues mentioned in point 4. We are paying monthly maintenance for last 2 years still can society refuse to give NOC?
Please provide your valuable help and if there is possibility of raising legal case then guide accordingly.
I C Naik
I am not a lawyer. I am a retired Corporate Executive of 75 years. I can read a law well in which I have keen interest. I can understand it also well.
I will try to deal with every issue that bothers you.
- It appears a Notice of AGM was sent for a business of holding elections. After 13 2 2013 management of all Cooperative Society elections is given to State Cooperative Election Authority. Elections held by the Society’s committee in AGM are not valid in law. Inform the Deputy Registrar of your Ward and he will take steps to organize fresh elections.
- New Committee had no authority to call AGM of 2 years as the committee itself was not elected as per the MCS Act 1960. Inform the Deputy Registrar of your Ward and he will take steps to organize fresh elections.
- Interest in excess of 21% need not be paid by any member. More over it has to be simple rate and no interest on unpaid interest can be levied.
- If no demands are raised nothing is payable. So ignore the reminders. Make ad hoc payments if you think there are any arrears,
NOC for loan for repairing of house and also for dues there is no need to have NOC of the Society.