• How can we (Resident's Welfare Association) handle defaulters?

I am the new president of a RWA where several residents have accumulated large amounts due to the Association. 
We have several chronic defaulters who have in some cases more than Rs 100,000/ of maintenance due. We have so far not resorted to any disruptive options but currently we are considering stoppage of services to these apartments.
Can anyone provide me with legal ramifications of stopping such services like water, parking and housekeeping or provide me with an alternative method of collection of dues?
Asked 2 years ago in Property Law from Bangalore, Karnataka
Hi, you cannot stop services like water and other services, first issue legal notice for recover the same and there after file a suit for recover the same.
Pradeep Bharathipura
Advocate, Bangalore
4371 Answers
178 Consultations

4.3 on 5.0

Hello,
1) No Resident Welfare Association or Housing Society has authority to deprive the resident of the essential services like water, housekeeping etc. and hence you can not take that step to deal with the defaulters.

2) You need to first publish their names on the notice board of the Association and allow a short period to comply. If they fail to respond or post up send them a legal notice demanding payment of arrears.

3) If the defaulters fail to pay even after receipt of the legal notice you will need to file  a suit for recovery in a civil court. The jurisdiction to file the suit will depend the nature of your welfare association.
S J Mathew
Advocate, Mumbai
2135 Answers
89 Consultations

5.0 on 5.0

Hi,
 the president or secretary can issue a notice asking for the arrears, there after send a legal notice and proceed in the court for recovery.
If your association is registered with the Registrar of societies your first forum is Dy.Registrar and you can file application before him to recover the money 
In case the association is not registered under District registrar of society , you can move to a civil court for recovery of the maintenance arrears due.
if it not registered under any particular act, and you have a bye-law  directing to disconnect the services,and amenities , yes you can do that.
Thresiamma G. Mathew
Advocate, Mumbai
1478 Answers
119 Consultations

5.0 on 5.0

1. You have allowed the water to come up to your head,

2. You can not stop providing basic ammenities to the defaulters without due process of law,

3. You shall have to file Recovery Suit against the defaulters before the Court praying for direction upon the defaulters to make the said payment with interest and also approval for ceasing to spend any further amount in providing basic ammenities to them from the funds provided by others.
Krishna Kishore Ganguly
Advocate, Kolkata
15182 Answers
368 Consultations

5.0 on 5.0

1) you cannot disconnect water and other essential services to defaulters 

2) your remedy is to issue legal notice and file suit for recovery of outstanding dues from defaulters . 

3) before issue of legal notice resolution has to be passed by association to take legal proceedings for recovery of dues with interest 

4) please note that if claim is more than 3 years old claim would be barred by limitation
Ajay Sethi
Advocate, Mumbai
35390 Answers
1963 Consultations

5.0 on 5.0

First call for a meeting of Welfare Association; send registered notice to all members / Occupiers of the Flat. Discuss the issue to all members and take a decision for collecting arrears. 

Again send Notice to all defaulters mentioning about the unanimous decision take by the members in Special meeting (Previous meeting). Mention that if they are not paid the arrears, you have compelled to take legal actions against them civil / criminal.

If they are turned up file a case before the Munsiff Court for recovery of money of the maintenance arrears due from the defaulter.  Don’t for get to keep the copy of the notice, acknowledgement card, Meeting Minutes book etc…you cannot disconnect water and other essential services to defaulters.if claim is more than 3 years old claim would be barred by limitation
Ajay N S
Advocate, Ernakulam
2449 Answers
28 Consultations

5.0 on 5.0

1. The RWA can issue a lawyer's notice to the defaulters and even follow it up (if required) by filing a suit for recovery against them in the court, but under no circumstances it can disconnect the electricity and water supply.

2. Electricity and water are essential services, of which a person cannot be deprived in a whimsical manner. 

3. If these essential services are disconnected by RWA the executive body members will be amenable to prosecution in their respective personal capacities.

4. The only method permissible under the framework of law is to issue a lawyer's notice to the defaulters. If they do not pay up even after the notice being issued then a case for recovery may be file din the court.

5. A resolution to initiate the process of law against the defaulters has to precede the issue of a lawyer's notice.
Ashish Davessar
Advocate, Jaipur
21382 Answers
572 Consultations

5.0 on 5.0

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