Recovering dues: How to make defaulting members pay up
Here are the steps that are necessary for effecting the recovery of the co-operative society’s dues from its defaulting members by resorting to the provisions of the Section 101 which are given below:
Issue notice to the defaulter
The co-operative society has to give a notice to the defaulter member giving him an opportunity to make the payment of the dues to the co-operative society with.
In such a period, as the society may allow, with a warning therein that on failure to make payment of the same, an application would be made to the registrar under Section 101 of the M.C.S Act for recovery of the outstanding dues.
Pass a resolution in the committee
Upon the failure of the defaulting member to make payment of the outstanding dues of the society within the stipulated period mentioned in the notice, the managing committee has to pass a resolution in this meeting for taking action against the defaulting member under section 101 of the M.C.S Act 1960 autorizing the Secretary/Chairman of the society to sign all the documents to be submitted to the Registrar Co-operative societies and to furnish the necessary information required by the registrar for issue of a certificate.
Make an application to the registrar of the ward
The Secretary/Chairman of the society has to make an application to the registrar of Co-operative Societies along with other necessary documents as are required to be submitted.
Hearing by the registrar
On receipt of the application from the Co-operative Society, the registrar would give hearing to the member concerned and on verifications of the record, if the registrar is satisfied about the correctness of the outstanding dues and after making such inquiries, as the registrar deems fit, a certificate will be issued by the registrar to the society.
Receive the certificate
The registrar, on satisfaction of the claim of the society, issues a recovery certificate about the amount to be recovered against the member.
Inform the special recovery officer
On receipt of the certificate, under Section 101, from the registrar, along with other documents, the recovery officer has to prepare demand notice for being sent to the sale officer for restraining the movable property of the defaulted member concerned.
Actions to be initiated by the special recovery officer
The sale officer, on receipt of the recovery papers from the recovery officer, has to visit the flat of the member concerned for preparing an inventory of the movable property and hand over such list to the member concerned and serve the demand notice on the defaulter.
Take custody of the movable property of the defaulter
If the amount is not paid by the member concerned forthwith on service of the demand notice, the sale officer will seize the movable property of the member concerned as per the inventory and hand over the same to the secretary/ chairman of the society for safe custody.
Decide date and time of the auction
Thereafter the sale officer will fix the date, the time and place for such auction of the movable property seized and auction out the same and pay the sale proceeds thereof to the society, in satisfaction of the outstanding dues payable by the defaulting member to the society.
Sale of the flat
In the event of the proceeds of the sale of the movable property are found to be insufficient to cover the outstanding dues in full, as per the certificate, the sale officer will proceed against the flat of the member concerned by arranging auction of the flat to recover the balance of the dues payable by the member.
Source: Maharashtra Societies Welfare Association