Sir the penalty can be charged in the quarter there was delay in the payment the same provisions are included in the byelaws of the society society can make such provision to levy penalty on the late maintenance but still cannot take the unreasonable and unjustified amount.

Dear Client,

Penalty shall be acc. by laws of society. Maximum penalty is Rs. 5000 p.a or 21% p.a. interest.

You should approach cooperative registrar of your area with your complaint for any higher interest change by the society.

And interest shall be payable for defaulted time and not quarterly.

1. society is charging maintenance on quarterly basis

2. that too in advance and not in arrears

3. so say for the quarter Jan - March, the maintenance bill will be raised in the last week of Dec and the bill has to be paid on or before the commencement of the quarter Jan - March

4. lets assume the due date for payment for quarter Jan - March is 1st January

5. let us assume that the bill is not cleared on 1st January and is sought to be paid on 7th January

6. so if that is the case then the society can charge penalty only for the number of days for which the payment though due was not made i.e. society can levy penalty for the period 2nd January to 7 th January i.e.levy a penalty proportionately for 6 days delay in clearing maintenance bill

7. thus the penalty levied in your case for every week is wrong. That is, there could be some days in the week comprised in default period for which no penalty could have been payable as the maintenance would have been cleared prior to expiry of that week. or say in the beginning of the week. So levying penalty for the rest of the days of that week when the payment is already made, say on the first day of that week, is wrong. Levy of penalty always has to be on a proportionate basis

8. you are liable to pay penalty on pro-rata basis only for the number of days for which the payment has been delayed

Maximum penalty is Rs. 5000 p.a or 21% p.a. interest.

You should approach the cooperative registrar of your area with your complaint.

Penalty charges are exorbitant

2) is there any provisions in your bye laws for levy of penalty charges at rate levied by society

3) further resolution has to be passed in AGM for levy of penalty charges

4) let society take legal proceedings to recover penal charges

In Maharashtra cap is 21 per cent for delayed payment

2) for TN local Lawyer can guide you

3) if bills are raised quarterly and you fail to make payment within 30 days or 60 days society can charge you penal interest for the period of delay

Regarding cap govt. issues notice form time to time - check with registrar office.

as per weeks on only same held in by laws - Rs. 250/- per week

The maintenance charge depends upon the bylaws which is adapted by the society through its General Meeting interest

The modality of payment any penalty which is decided by AGM will be followed by all the members of the society and eventually you as well you need to make sure that you have to deposit the required amount will be 4 in advance as per the policy of the society and I believe the expenses are calculated on the basis of income and expenditure account and I located to all the members accordingly to absorb complete expenses.

You have an option open if there are a few more members who are in opinion that this practice should be amended you can approach to register of society and request him to pass his order in this regard.

The register is also bound to follow the bye laws adopted by the society in its General Meeting of members

1. The cap is for Maharashtra under the Tamil Nadu societies Registration act the Penalty is to be decided under the bye laws so the bye laws has to be referred.

2. Yes it can be as per the registered byelaws of tghe society further section 22 provides that a suit can be filed for recover of same.

Section 22 Where any by-law of a registered society provides Suit to recover

for the imposition of any pecuniary penalty for any breach penalty.

thereof, such penalty, when accrued, may be recovered

by suit filed in the court having jurisdiction where the

defendant resides or the registered office of the registered

society is situate.

3. See if the due date of payment is 1 Dec. for Jan to March and payment is made in second week then penalty for two weeks not as per the months of maintenance.(Quaterly)

Firslty, as per the information been given in your query, it may be taken as arbitary demand of the society.

Secondly, there is no provision of law under which the society may impose such a huge amount, and that is also without giving any prior notice to you.

Thirdly, it is for them to charge on the amount of total been required to be paid, but it doesn’t mean that they can charge anything.

Fourthly, you need to challenge the same arbitary ness before the civil court of law as this has to be stopped other wise if you pay today then they may ask from everyone.

Fifthly, and delay may only for the days, it can’t be like this that if the 8th day comes then they charge for the whole second week.

The amount of monthly maintenance charges and the rate of penalty, if any, for belated payment, should be duly incorporated in the bylaws of your society. Otherwise, any demand shall only be unjust and arbitrary. Check the bylaws, please.

1. Under the Maharashtra Societies Act, Rules & APPROVED bye-laws, only 21% SIMPLE interest is leviable on defaulted amounts. Rest everything shall be illegal & unauthorized.

2. HOWEVER, levy of Interest amount /percentage, on outstanding dues is defined in your own Society /Association bye-laws, which is final for all purposes. This you need to check.

3. IRRESPECTIVE of above, You have an option of putting up a written complaint to the local office of the Cooperative Registrar and to the local Consumer Court, for redressal of your genuine grievances.

Keep Smiling .... Hemant Agarwal

Such issues are governed by the bye laws of the society.

If the bye laws authorise the society to levy penalty on delayed payments, then all the members of the society are bound by the ruling.

There cannot be a separate law for any one member nor there can be any privilege shown to any member for any reason.

If you feel that this is exorbitant then you may raise this issue during the next annual or special general meeting of the society and get it modified by passing a resolution on this.

1.The cap of 21% or Rs. 5000 is under which clause / law? Is it also applicable for Societies registered under

Tamil Nadu ACt.

2. Can a fixed amount be levied irrespective of the billed amount?

3. For example, if Billed in Dec for Jan-Mar, on a delay delay of 2 weeks, penalty to be charged on full quarter

or only on 1 month (as the next 2 months are technically not yet due)?

The answer for these technical questions also can be found in the bye laws itself.

If you go by law then nothing is enforceable, the levies made by the society would not be maintainable if they approach court of law for this.

That is why they make such bye laws which is binding on all the members and is common for all.

You can agitate this issue in the general meeting of the society and get a solution to reduce the exorbitant penalties.