Outstanding Maintenance Dues from Builder and Delay in Issuing Share Certificate
Within the intricate setup of cooperative housing societies (CHS/ Society), member-residents often find themselves entangled in a web of challenges, seeking clarity on issues that impact their daily lives.
This week, we are looking at a perplexed shop-owner facing outstanding maintenance dues left by the builder, prompting a meticulous examination of responsibilities and recourse. Another resident faces an unjustified delay in receiving a share certificate, prompting a strategic approach to address the situation. Lastly, we tackle the complexities of a landlocked plot hindering redevelopment and shed light on the consequences and remedies when an annual general body meeting is not conducted within the stipulated period. Outstanding Maintenance Dues from the Builder
Question: The builder had left some unsold shops in our project and members formed the cooperative housing society (CHS) without the builder's cooperation. I purchased a shop from the builder in January 2019. This shop was vacant and there was no power connection until I bought it. When I approached the Society for membership, they denied it, saying that I had not cleared the outstanding maintenance dues.
Why am I supposed to clear the outstanding maintenance when it is the builder's responsibility? When I approached the builder with this issue, he says that Society cannot claim maintenance on an unsold shop. Now I am stuck between these two parties and have been paying monthly maintenance from the date I purchased the shop. But the outstanding keeps on increasing due to the interest being applied on the previous dues. Please advise.
Answer: Once the Society of the building is formed, the builder should pay for the maintenance of his unsold flats and shops. Society is correct in charging maintenance of your shop. But it should be calculated from the month the Society was registered and not for the period before the registration.
Find out how the Society has charged maintenance of your shop. If the Society has calculated the charges, including months before its registration, you should refuse to pay it. On the other hand, if the dues have been calculated from the month of registration, just before you bought the flat, you should ask your Society to give you notice. This notice should be split three ways – dues before registration of Society (if Society has asked for it), dues after registration until the time you purchased the shop, and dues after you bought the shop. You should then pay all the Society's dues after you bought the shop, even if you have not opened the shop as yet.
Any maintenance that is asked by the Society, before registration and after registration up to the time you purchased the shop, you should take up separately in a consumer court. File a case jointly against the builder and the Society.
Society is responsible for recovering dues from the builder and it should send monthly maintenance bills to all unsold flats and shops he owns. It seems that the Society has failed to do so.
Kindly hire the services of a good advocate to present your case in the consumer court, and you shall succeed in recovering the dues of your shop from the builder.
Unjustified Delay in Issuing Share Certificate
Question: The concerned property was transferred to me in January. Since then, despite repeated reminders, the Society has not issued a share certificate as prescribed under bye-law no 40. What next step should I take to address this inordinate delay?
Answer: Under bye-law 172, write a letter to the secretary of your Society to give you the share certificate within 15 days of your complaint to them. Mention that otherwise, after 15 days under bye-law no. 174(A)(ii), you will make a complaint against the CHS to the deputy registrar of cooperative societies.
When you make a complaint against your CHS to the deputy registrar of cooperative societies, he will write a letter to your CHS asking them to give you your share certificate within 15 days of his letter. A copy of the deputy registrar's letter will also be sent to you. With this copy of the letter, you can do a follow-up with the Society for the share certificate.
If you still do not get the share certificate, then under MCS Acts 22(2) and 23, make an appeal to the deputy registrar of cooperative societies, who will conduct a hearing in his office and pass a favourable order. Again, if the Society fails to comply, the deputy registrar will dissolve the current managing committee and appoint an authorised officer, who will then issue you the share certificate.
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question Right of Way in a Landlocked Plot
Question: Our 34-year-old housing society building is on a landlocked plot, and the owner of a property measuring 4x9 meters is obstructing our way. He is not willing to give the right of way to the main municipal road, which is just 4 meters away from our building compound. Please advise how we can proceed with redevelopment.
Answer: Kindly hire the services of an architect to figure out a way for your landlocked plot. Once you get this done by an architect, you should find a good advocate practising in easementary rights who would help you make a complaint to the concerned Tahsilar. This should help you get the right of way to reach the main road.
Delay in Conducting AGM
Question: If the annual general meeting (AGM) of a certain financial year is not held before the end of September in the following year due to inadequate advance intimation of 14 clear days, what are the consequences and remedies for these?
Answer: If your CHS does not hold an AGM in the following year by 30th September, then you can approach the deputy registrar (DR) of cooperative societies to appoint an authorised officer for your CHS, to conduct an AGM.
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
