In some of the unfortunate events, societies at time may come across situation when they are unable to get the payment for maintenance bills, month after month. In such a condition, what are the lawful way to recover the dues that a society can opt for.
Maharashtra Societies Act, Under section 101, have provided lawful procedure to encounter such situation.
As a first step, societies can issue a letter to the defaulter mentioning the outstanding amount and the last payable date cautioning that beyond which housing society will be compelled to act along the lines of MCS Act to recover the dues. Upon failing the last deadline, the housing society management need to pass a resolution confirming that all are on same page and agreeing to take action against the defaulter to recover dues as per MCS Act stated procedure.
As per rule and privilege stated in section 101 in MCS Act, the chairman and/or secretary of the housing society can initiate the process by signing all the required documents and submitting the same to the Society Registrar office.
Society Registrar office will verify the documents and will provide Recovery Certificate to the society. Acting upon the certificate, the Recovery officer will prepare a demand letter to be sent to the Sales officer. Also the same notice will be attached to the defaulter’s property in question.
The Sales officer will visit the unit and will make list of all the moveable property present in the unit. If yet the dues has been cleared, the sales officer will seize the moveable properties and handover the custodial right to the Chairman of the society. The properties will then be auctioned off to raise the amount under leadership of the chairman. In case, the entire amount is not been able to recovered from the auction, the Sales Officer can seize the defaulters’ property as well and make arrangement to sale it off to recover the due amount.
So, here we have tried to collate the procedural step from authentic sources and relay in a simple layman term to give an overall idea of the same. However note that, before taking such steps, legal advices are absolutely important and recommended.
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