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By Legal Bureau

When member termed as a defaulter?
The member who fails to make required payment within the due date of bill, then he can be categorized as a defaulter. In such circumstances Society can also charge interest. It is important that there should be a demand upon the member by the society time to time by orally or by written notices.
Can a defaulter contest the election?
A defaulter can not contest the election. As per Bye-law No. 118 no person shall be eligible for being elected as a member of the Committee or co-opted on it, if he/she defaults the payment of dues to the society. A defaulter can propose a second candidate for the election.

How to recover the amount from defaulter?
If the defaulter does not respond to the request made by the society then the society obviously does not have any other alternative but to recover the dues from the defaulting member. The enquiry fees and court fees stamps have to be paid on the amount of claim as made out against the defaulting member.
What is the procedure to recover the amount from defaulter?
Before going with the procedure under section 101 of Maharashtra Co-Operative Societies Act, 1960 the Office bearer should try to discuss out the issue with the defaulters. Even after the discussion the defaulters do not wish to pay the dues then the office bearers should issue notice for recovery of dues, Inspite of the same if the defaulters do no pay the dues than a suit can be filled before the Asstt. Registrar/ Deputy Registrar u/s. 101 for recovery of dues.
The procedures for recovery of dues are as under:-
1. The Society should issue a notice to defaulting member with giving him an opportunity to make payment of dues within the period mentioned in the notice.
2. The Managing Committee has to pass a resolution for talking action under section 101 of the Act and to recover the dues in the Meeting.
3. The Hon. Secretary/ Chairman has to make an application to the Registrar along with all such other documents as are required to be submitted along with the application.

4. On receipt of such an application, the Registrar would give a hearing to the defaulting member/s and after verification of the records if the Registrar is satisfied about the dues, a certificate will be issued by him to the society, as he may deem fit. The notice to be issued after proper inquiry by the Registrar or such other officer who exercise the powers under Sec. 101 of this Act. If no such inquiry is made prior to the granting of such a recovery certificate granted is liable to be quashed.

5. On receipt of the certificate, the Recovery officer send demand notice to the sales officer for sale of the movable property of the defaulting member.

6. The sale officer, on receipt of the recovery papers visits the flat of the members.

7. If the amount is not paid, the Sale Officer will seize the movable property as per the inventory and hand it over to the Chairman/ Secretary or any other person for safe custody.

8. The sale officer will then fix the date, time and place for auction of the movable property seized. The same will be auctioned and the proceeds of the sale will be given to the society, in satisfaction of the dues outstanding against the defaulting member.

Misconduct by office bearers:-
Sometimes office bearers disconnect essential services like electricity, water supply, etc., of defaulters, who refuse to pay the societies dues inspite of repeated requests. The office-bearers should not disconnect the essential supplies even there is disputes with defaulter. If the member refuse to pay the dues then society can recover by filing a suit under section 101 of Maharashtra Co-Operative Societies Act, 1960 against the defaulter. If office bearers disconnect essential services the aggrieved party (Defaulter) files a criminal complaint and if the person found guilty for disconnecting the essential service/s can be punished with imprisonment which can extent up to a period of three months and/or fine.