Tenancy, PG, and Use of Premises
If a tenant fails to pay bills, can society charge the owner double? (No, just owner)
Written By: GatePal Analyst
Last Updated on
Short Answer
No, as per the Gujarat Cooperative Societies Act, 1961, the society cannot charge the owner double if the tenant fails to pay bills.
Detailed Explanation
Section 123 of the Gujarat Cooperative Societies Act, 1961 governs the rights and obligations of members towards the society. This section clearly states that the liability of a member for the debts of the society is limited to the extent of the share held by the member. Therefore, if a tenant fails to pay bills, the society cannot charge the owner double as the owner's liability is limited to their share in the society.
Furthermore, Rule 117 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the recovery of dues from members. This rule specifies the procedures and limits within which the society can recover dues from its members. It does not allow for charging the owner double if the tenant defaults on payments.
In practice, if a tenant fails to pay bills, the society can take legal action against the tenant to recover the dues. The owner may be notified of the default, but their liability is limited to their share in the society as per the Act.
Real-world Scenarios
Scenario 1: A tenant in a cooperative society fails to pay maintenance bills for several months. The society sends notices to the tenant for payment but receives no response. In this case, the society can take legal action against the tenant for recovery of dues without charging the owner double.
Scenario 2: An owner in a cooperative society is unaware of the tenant's default in bill payments. The society informs the owner about the default and requests cooperation in resolving the issue. The owner is liable to pay only up to the extent of their share in the society.
Scenario 3: In a cooperative housing society, the owner and tenant have a clear agreement regarding the payment of bills. If the tenant defaults, the owner can take necessary steps to recover the dues from the tenant without being charged double by the society.
References
Section 123 of the Gujarat Cooperative Societies Act, 1961: Official PDF
Rule 117 of the Gujarat Cooperative Societies Rules, 1965: Official PDF
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