Once no dues certificate is issued it implies that there are no dues pending
2) society cannot claim interest from members after issuance of NDC
Can cooperative society charge interest after issuing no dues certificate
My housing society have issued me NDC twice, but still they asking for interest on delayed payments. its no where in by laws that they can charge interest not its mentioned on No dues certificate(NDC) that it is subject to audit. Can they charge interest on interest, what is the point of taking NDC if its not valid and can be challenged at any point of time.
Asked 4 years ago in Property Law
Religion: Sikh
14 Answers
See if the no dues is given after that society cannot charge interest on delayed payment.
Interest or interest on Interest cannot be charged even if society take legal step to recover same , same.csn be contested before court after producing no dues before the court.
can you please share any judgement or order regarding the same. my case is pending in Lok adalat. they are of the opinion that even after issuing NDC all charges are subject to audit.
Asked 4 years ago
Unable to find any judgments on the issue
has any audit objections being raised ?
what is interest claimed ?
No they can not charge anything after the issuance of the NOC
No they can't charge interest on interest. It's illegal
- As per law , after issuing , no dues certificate , the society cannot claim for interest on delayed payments.
- But it can charge interest only on government dues (property tax, water tax etc) collected by society only.
1. "No Dues Certificate" is a tentative certificate issued to Flat Owner /Member, by Society.
2. However, Flat Owner /Member, of Society, are legally bound to clear any legitimate dues, despite issuance of no dues certificate. Any inadvertent error in issue of no dues certificate, CANNOT be off-set by actual pending dues, since this affects the overall interest of other members & society and society CANNOT off-set any legitimate dues in its balance sheet, because of an inadvertent error.
Once NDC issued, nothing payable except fresh demand that lapse committed while issuing checking no dues. No interest payable only principal amount if any due.
See once NOC is given same is not.subjective or with terms same is given after seeing all the accounts and statements.
If you have the NDC issued by the society, you can refuse to pay the interest demanded by them.
If they have demanded the interest in writing then you can refuse to pay or comply with the demand in writing itself, but if it is oral, then you may also orally refuse them.
Tell them that you are ready to face them though legal process if they insist on their illegal demands on the basis of the NDC given by them.
Let them insist this, the lok adalat is not a regular court, you may refuse to accept their demand in lok adalat and ask them to revert the matter to regular court, you can very well challenge their claim in court if at all the matter is escalated to court.
Yes it can be challenged but you should not wait much if you want to challenge the interest charged by cooperative society.
That too after issuing No dues certificate.
Complain to local Cooperative Registrar Office. Handover your complain and enclose No due certificate.
Society can charge only simple interest and not compound interest at all. Kindly ask the society body members to follow the bylaws or you can make complaint to registrar or sub registrar of your area cooperative housing society registrar.
