1. Please refer to this office latter No DIN / Chand / 2008 / 1 dated 23 Sep 2008.
2. In Jun 1998, the Society had concluded a contract with M / S Chand Construction Co. for ‘External Electrification & Sub Station Works’ at the Society premises. After the work was executed, the Society issued an Account Payee Cheque to M / S Chand Construction Co. for Rs 11, 12, 886/- which bounced due to insufficient balance in Society’s account. On 31 Jan 2001, the Company pointed out that another amount of Rs 3, 58, 140/- being security deposit, was also refundable by the Society to M / S Chand Construction Co. The Society was, therefore, required to pay Rs 14, 71, 020/- to M / S Chand Constructions Co. This amount was also verified to be correct by the Society’s architect.
2. In Jun 1998, the Society had concluded a contract with M / S Chand Construction Co. for ‘External Electrification & Sub Station Works’ at the Society premises. After the work was executed, the Society issued an Account Payee Cheque to M / S Chand Construction Co. for Rs 11, 12, 886/- which bounced due to insufficient balance in Society’s account. On 31 Jan 2001, the Company pointed out that another amount of Rs 3, 58, 140/- being security deposit, was also refundable by the Society to M / S Chand Construction Co. The Society was, therefore, required to pay Rs 14, 71, 020/- to M / S Chand Constructions Co. This amount was also verified to be correct by the Society’s architect.
3. Having failed to get the Society to pay its dues, the Company went through arbitration and various courts to have the payments made. Finally, on 17 Dec 2007, the High Court of Delhi directed the Society to pay the Company Rs 29, 64, 656.13 with post decretal interest @ 12 % p.a. till the date of payment. The then MC, deliberately concealed the High Court order from members in the GBM held on 25 Dec 2007. In fact, the High Court order was never notified to the members.
4. When the Society to did not react to the orders of the Hon’ble High Court, The Company applied to the Court of District Judge, Delhi for execution of the High Court judgment and decree dated 17 Dec 20076. The Court issued a ‘Show Cause Notice’ dated 19 Jul 2008 to the MC and fixed the hearing for18 Aug 2008. On 18 Aug 2008, neither any member of the MC nor the Society’s counselor was present in the Court to present the Society’s stand. The Court has set 31 Oct 2008 as the date for passing the final order for attachment of the Society’s property.
Negotiations
5. A ‘negotiating team’ comprising of Col RC Kapoor, Brig Rakesh Goel and Dr AK Upadhyay was formed from amongst the new MC members, who met Mr Sumeet Chand and his lawyer on 21 Sep 2008 and again on 05 Oct 2008 to negotiate a better deal for the Society and save the members’ hard earned money.
The Agreement on 06 Oct 2008
6. Mr Sumeet Chand was invited to the Society office on 20 Oct 2008 to conclude the final Agreement on payments to be made. Shri Suresh Srivastava was in attendance as an independent witness. Highlights of the Agreement signed between the MC and Chand Construction Co. are as follows:-
(a) Rs 20 lakhs will be the total amount to be paid to Chand Construction Co.
(b) Rs five lakhs to be paid by 06 Oct 2008. This was done on the spot.
(c) Rs 11 lakhs is to be paid by the Society by 31 Oct 2008 i.e. the date set by Court for passing the final order.
(d) Balance of Rs four lakhs is to be paid by the Society on or before 15 Nov 2008.
(e) If the Society defaults in keeping the above schedule, for any reason whatsoever, then the Agreement would stand abrogated and the Society will have to pay the entire amount of over Rs 32 Lakhs as ordered by the High Court.
7. The Agreement signed between DIN CGHS Ltd and Chand Construction Co will be presented in the Court on 31 Oct 2008 to conclude the case.
Payments required to be made
(a) Amount Payable on 17 Dec 2007 Rs. 29,64,656.13
(b) Amount with interest @12% p.a. till 01 Oct 2008 Rs. 31,78,512.64
(c ) Amount per member (based on 160) Rs.. 19,865.71
After Negotiation
(a) Amount payable by 31 Oct 2008 Rs. 16,00,000.00
5. A ‘negotiating team’ comprising of Col RC Kapoor, Brig Rakesh Goel and Dr AK Upadhyay was formed from amongst the new MC members, who met Mr Sumeet Chand and his lawyer on 21 Sep 2008 and again on 05 Oct 2008 to negotiate a better deal for the Society and save the members’ hard earned money.
The Agreement on 06 Oct 2008
6. Mr Sumeet Chand was invited to the Society office on 20 Oct 2008 to conclude the final Agreement on payments to be made. Shri Suresh Srivastava was in attendance as an independent witness. Highlights of the Agreement signed between the MC and Chand Construction Co. are as follows:-
(a) Rs 20 lakhs will be the total amount to be paid to Chand Construction Co.
(b) Rs five lakhs to be paid by 06 Oct 2008. This was done on the spot.
(c) Rs 11 lakhs is to be paid by the Society by 31 Oct 2008 i.e. the date set by Court for passing the final order.
(d) Balance of Rs four lakhs is to be paid by the Society on or before 15 Nov 2008.
(e) If the Society defaults in keeping the above schedule, for any reason whatsoever, then the Agreement would stand abrogated and the Society will have to pay the entire amount of over Rs 32 Lakhs as ordered by the High Court.
7. The Agreement signed between DIN CGHS Ltd and Chand Construction Co will be presented in the Court on 31 Oct 2008 to conclude the case.
Payments required to be made
(a) Amount Payable on 17 Dec 2007 Rs. 29,64,656.13
(b) Amount with interest @12% p.a. till 01 Oct 2008 Rs. 31,78,512.64
(c ) Amount per member (based on 160) Rs.. 19,865.71
After Negotiation
(a) Amount payable by 31 Oct 2008 Rs. 16,00,000.00
(b) Amount payable by 15 Nov 2008 Rs. 4,00,000.00
(c) Total Amount payable Rs. 20,00,000.00
(c) Total Amount payable Rs. 20,00,000.00
(d) Amount per member Rs.12,500.00
(e) Saving per member after negotiation Rs. 7,365.71
Final Share of Each Member
(a) Amount payable by 20 Oct 2008 by all members Rs. 7,000.00
(b) Amount payable by 10 Nov 2008 by all members Rs. 3,000.00
Total Rs. 10,000.00
Total contribution from members Rs. 16,00,000.00
Contribution from society’s fund Rs.4,00,000
8. Members are requested to note that as per agreement in case we are unable to make payments by the due date, the Society will have to make total payments as per decree i.e. Rs. 29,64,656.13 + interest @12% p.a. upto the date of payment (Over Rs 32 Lakhs). In view of above we request all members to ensure that their payment is received by the Society by the due date. You will appreciate that in case we are unable to meet the schedule of payment because of default in payments by some members, the extra liability over and above Rs. 20, 00,000.00 plus interest @12% shall be shared by such members who have delayed the payments.
Sd/-
(Col Jagdish Madan, Retd)
Secretary
Copy to: Registrar Cooperative Societies
Old Court Building
Parliament Street,
New Delhi
A/R (SW)
Final Share of Each Member
(a) Amount payable by 20 Oct 2008 by all members Rs. 7,000.00
(b) Amount payable by 10 Nov 2008 by all members Rs. 3,000.00
Total Rs. 10,000.00
Total contribution from members Rs. 16,00,000.00
Contribution from society’s fund Rs.4,00,000
8. Members are requested to note that as per agreement in case we are unable to make payments by the due date, the Society will have to make total payments as per decree i.e. Rs. 29,64,656.13 + interest @12% p.a. upto the date of payment (Over Rs 32 Lakhs). In view of above we request all members to ensure that their payment is received by the Society by the due date. You will appreciate that in case we are unable to meet the schedule of payment because of default in payments by some members, the extra liability over and above Rs. 20, 00,000.00 plus interest @12% shall be shared by such members who have delayed the payments.
Sd/-
(Col Jagdish Madan, Retd)
Secretary
Copy to: Registrar Cooperative Societies
Old Court Building
Parliament Street,
New Delhi
A/R (SW)
Now, that the committee has changed, following text under TITLE needs to be changed "In the absence of cooperation from the Management Committee to usher in transparency and share information".
ReplyDeleteThe new management is committed to respect members' right to information. The objective of the blog remains the same even with the new MC in place
ReplyDeletethank you for the feedback. The blog description has been updated.
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