• Corpus amount not paid by owner on time

Hello Sir,

This is regarding Apartment Owners Association Corpus amount collection and actions against defaulters.

We have collected amount 15K from each owner in 2019 for the months of Aug, Sep, and Oct each month 5000/ with late payment charges of 1000/- for every month after due date, some of the owners have not paid in first two months , but paid together in last month (OCt2019) with total amount of 15K. and some owners have paid recently ( which is almost after 10 months) but not the late payment charges. 

While sending the notice to owners for corpus collection, we have mentioned that necessary actions will be taken against defaulters. 

My query is , can we disconnect the Generator and Water connections legally by sending a notice to defaulters, FYI, Generator and Water charges are part of Maintenance.

Please provide your views on this.
Asked 3 years ago in Consumer Law

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15 Answers

You cannot disconnect water and electricity supply as they are essential services 

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

1. . It is not clear whether the Association is registered under any Act or not.

2. It is not clear what is the objective behind collection of corpus fund.

3. Even if the collection of such find is considered to be legitimate and the Association has statutory recognition no such action like severance of essential supply of electricity or water can be done. This is an action  for which police on complaint can register FIR. 

Devajyoti Barman
Advocate, Kolkata
22824 Answers
488 Consultations

5.0 on 5.0

You cannot disconnect water connection but generators can be done if there is other source of electricity in their house. 

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

No. You can't. 

Those items are essential for human beings and we are staying in Society premises not in jungle Raj.

You have choice to proceed with recovery notice and seek fund remittance within two weeks failing which matter would be filed before competent authorities and court of law under due process of law.

 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

You can't disconnect the essential services without court order. You can file a proceeding with competent authority for the same to recover

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

Frankly speaking that the Association has levelled exorbitant penalty of Rs.1000/- per month  on monthly payment of Rs.5000/-  , that is 20% per month and 240% per annum.   You are running a ownership association or what.  Even the bank charge penalty @ 2% per annum.  Recall your illegal notice and fix a penalty in consultation with the owners and make the place livable if not heaven,

Since you sought our view, I have given mine. Rest upon you.  But think before your action that in case your electricity and water connection is disconnected  how you would feel.   Start thinking humanly please if we are!    I would be happy if it hurts anyone in the Association.

Dalip Singh
Advocate, New Delhi
1084 Answers
36 Consultations

5.0 on 5.0

- As per Supreme Court, No society is entitled to disconnect or suspend common amenities including electric & water supply, and only can issue a legal notice to the defaulter and if he/she does not pay the same, then approach the court for recovering the dues of maintenance. 

- As per the Apartment Ownership Act , Each apartment owner shall comply strictly with the bye-laws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended form time to time, and with the covenants, conditions and restrictions set forth in the Declaration or in the Deed to his Apartment. Failure to comply with any of the same shall be a ground for an action to recover sums due for damages or injunctive relief or both maintainable by the association head or the management committee on behalf of the Association of Apartment Owners or, in a proper case by an aggrieved apartment owner.

- Hence, if any flat owner is not paying the maintenance charges, it is open to the association to demand the same from the defaulting member in accordance with law, but cannot connect the essential services like electrify and water supply. 

- And hence, legally you cannot disconnect the Generator and water connection , but can send a legal notice for the recovery of the dues , and if no response then file a recovery case against them with penalty amount. 

Mohammed Shahzad
Advocate, Delhi
13230 Answers
198 Consultations

5.0 on 5.0

They have failed to make payment on time for Maintenance which includes Generator and Water charges. So if members will not pay for services he is consuming, definitely supply will disconnected.

What associations rules says about penalty in case of default or delay in making payment ?

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Yes the connections can be disconnected only after giving them proper notice.

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Since they have already paid the corpus funds but they are yet to pay the late fee amount only, you cannot disconnect the basic amenities facilities for this reason.

You can issue legal notice and then file a recovery suit through a civil court.

You can discuss about this issue at length in a special meeting convened for this purpose and take action as decided in the meeting.

 

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

That shouldn't be done as it would provoke them and enmity would increase.

Post the defaulters name on the notice board and call out their names in the gbm.

They should pay or they should challenge the same.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

Though maintenance charges are not in default but you can disconnect , advised not to disconnect water supply but disconnect the generator supply first after notice.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

1. No you cannot disconnect any service for recovery of dues from defaulters.

2. You can send legal demand notice for recovery of dues and file recovery suit against defaulters. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

The society cannot disconnect essential services without prior notice to the member.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

DEAR SIR,

It is suggested that water and electricity are essential services and thus disconnection of such services will attract penal actions against you. So, you are suggested to cause them suffer through other modes, 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

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