Write-off of Irrecoverable Dues

(a) The Society may write off any amount due from a Member or any other person, including maintenance charges, interest, recovery expenses, legal expenses or any other amount lawfully recoverable, only where such amount has become irrecoverable and its recovery is not reasonably practicable.

(b) No amount shall be written off unless—

(i) all reasonable steps for recovery under the Act, Rules and these Bye-laws have been taken;

(ii) the amount is certified as irrecoverable by the Statutory Auditor appointed under the Act;

(iii) the Managing Committee records detailed reasons for recommending such write-off; and

(iv) the General Body Meeting approves the proposal by passing an appropriate resolution.

(c) Where the Society is indebted to any financing institution or where approval of any authority is required under the Act, Rules or Government directions, such write-off shall be subject to obtaining the necessary approval.

(d) Where the Society has created a Bad Debt Fund or any similar reserve for meeting irrecoverable dues, the write-off may be adjusted against such fund in accordance with the Act, Rules, Government directions and applicable Accounting Standards.

(e) Every proposal for write-off shall contain—

(i) the name of the Member or person concerned;

(ii) the amount proposed to be written off;

(iii) the period to which the dues relate;

(iv) the recovery proceedings undertaken;

(v) reasons why recovery has become impracticable; and

(vi) the recommendation of the Managing Committee and the Statutory Auditor.

(f) A write-off shall be an accounting adjustment only and shall not, by itself, extinguish or waive the legal right of the Society to recover the amount if it subsequently becomes recoverable under law.