What are the necessary steps or procedure for the recovery dues from the defaulter members?

What are the necessary steps or procedure for the recovery dues from the defaulter members?

By resorting to the provisions of section 101 of the Maharashtra Co-operative Societies Act the co-operative society can seek for recovery of the amount due from the defaulters by adopting the following means,

  • the society has to give a notice to the defaulter giving him opportunity to make the payment of the dues within the specified period.
  • ii) upon the failure of the defaulter member to make the payment of the outstanding dues , the managing committee has to pass resolution in its meeting for taking action against the defaulter U/S 101 of the Act and authorizing the Secretary of the society to sign all the documents required to be submitted before the Registrar of the Societies.
  • the Secretary has to make an application to the Registrar of the Co-operative Societies.
  • On receiving the application the registrar would give hearing to the member and verifying the records and satisfying about the correctness after making the enquiries , if deem fit would issue a certificate for the recovery of the dues.
  • On receipt of the certificate under section 101 from the registrar the recovery officer has to prepare a demand notice of the dues.
  • The demand notice has to be again served upon the defaulter by the recovery officer and upon the receipt of such demand notice the defaulter does not pay the demand amount , the recovery officer shall visit the flat and prepare inventory of the moveables and hand over the same to the member as well as to the secretary.
  • Thereafter the sale officer shall fix a date, time and place for such auction of the moveable property seized from the defaulter member.
  • In the event the sale proceeds of the moveables are found insufficient to cover the outstanding dues in full, 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.

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