Legal Question in Credit and Debt Law in India

Due to shift from Ratable Value to Capital Value of Property Tax the P. Tax is reduced and our Housing Society has received refund of the excess amount paid to MCGM. Society has decided to refund this amount to the members proportionately. However, the issue is that the period for the excess amount refunded is prior to the resale of two flats. Question is: are the present two members eligible for the refund which is prior to their purchasing of flat.? Who should be the rightful beneficiary of the refund? Please advise quoting rule/Law if any . Thanks.


Asked on 4/29/15, 12:16 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

29.04.2015

Dear Sir / Madam,

Normally, refund of excess Property Tax payment received by the Society is adjusted by the Society against the forthcoming Property Tax dues of the member. If the Agreement for Sale specifically mentions that the Seller remains liable to pay any past claims or dues of the Society or any other authority, that may arise till the date of the Agreement, unless the Agreement specifically mentions that any past excess amount(s) paid by the Seller to the Society or any other Government authority prior to the date of the Agreement accrue to the Purchaser, it automatically implies that all such excess(es) paid by the Seller prior to the date of sale, accrue to the Seller alone. The present two members as Purchasers are not eligible for the refund which pertains to the period prior to purchase of the flat. So, if there is no specific mention of the Purchaser being the beneficiary of such refund in the Agreement for Sale, the excess refund is due and payable by the Society to the Seller.

Regards,

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Answered on 4/29/15, 1:18 am


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