Membership and Voting Rights
If I sell my flat, am I still liable for past dues of the society?
Written By: GatePal Analyst
Last Updated on
Short Answer
Yes, as per the Gujarat Cooperative Societies Act, 1961, you may still be liable for past dues of the society even after selling your flat.
Detailed Explanation
Section 31 of the Gujarat Cooperative Societies Act, 1961 states that a member who transfers his interest in the society shall continue to be liable for any dues to the society at the time of the transfer. This means that even if you sell your flat, you are still responsible for any outstanding payments or dues owed to the cooperative society.
In practice, this provision ensures that the financial obligations of a member towards the society do not cease upon the transfer of ownership. This is crucial for the smooth functioning of cooperative societies and to prevent any financial burden from being shifted to the new owner.
Real-world Scenarios
Scenario 1: Mr. A sells his flat in a cooperative society to Mr. B without clearing his pending maintenance dues. As per Section 31 of the Act, Mr. A remains liable for the unpaid dues, and the society can take legal action against him to recover the outstanding amount.
Scenario 2: Ms. X transfers her membership to her relative but fails to settle the outstanding electricity charges. The society can hold Ms. X accountable for the unpaid bills as per the Act.
Step-by-step process:
When selling a flat, ensure all dues to the cooperative society are cleared.
Obtain a 'No Dues Certificate' from the society confirming the settlement of all outstanding payments.
Transfer the ownership only after ensuring compliance with Section 31 of the Act.
Reference
Section 31 of the Gujarat Cooperative Societies Act, 1961: Official PDF
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