Recovery of amount from member defaulter

Recovery of amount from member defaulter

Que.Recovery of amount from member defaulter?

A member who does not pay his dues to the Society may become a defaulting member. The society has to take any action for recovery of dues from him as stated below

a)The society has to send 3 letters to him at a span of 15 days each asking him to pay the amount and making him aware that legal action of recovery will be taken against him if he does not pay his dues.
b)Society has to pass resolutions about the interest to be charged on such dues and the actions to be taken against defaulters in its Annual General Meeting. The society can charge up to a maximum of 21% interest
c) Society has to file an application along with all necessary documents and Court fee stamp for obtaining Recovery Certificate against the defaulting member with the Deputy Registrar Cooperative Department of the Area within which the society is situated
D)On receiving a Recovery Certificate the society has to hand it over to the Recovery Officer for further process of Recovery.