Case Note & Summary
The Bombay High Court dismissed writ petitions challenging recovery certificates issued by a cooperative housing society for long-pending maintenance dues. The Court held that recovery proceedings under Section 154B-29 of the Maharashtra Cooperative Societies Act constitute a special, self-contained mechanism and are not governed by the Limitation Act. Maintenance and service charges were held to be recurring statutory obligations, and non-payment amounts to a continuing wrong. The Court further ruled that liability for society dues attaches to the premises and is enforceable against persons in possession or enjoyment of flats, even in the absence of registered sale agreements or formal society membership. Recovery certificates were upheld.
Headnote
A) Cooperative Law – Maharashtra Cooperative Societies Act, 1960 – Section 154B-29 – Recovery of society dues – Plea of limitation and delay – Held: Section 154B-29 is a special, self-contained recovery mechanism with overriding effect – Limitation Act and Section 92 not applicable – Maintenance and service charges are recurring statutory obligations – Non-payment constitutes a continuing wrong – Recovery of arrears cannot be defeated merely by lapse of time – Recovery certificates upheld (Paras 18-25). B) Cooperative Housing Society – Liability for maintenance charges – Petitioners in possession of flats under development agreement – Claim of non-membership and absence of registered sale deed – Held: Society dues attach to the premises – Liability follows the flat and is enforceable against person in occupation or enjoyment – Membership and occupation are sufficient connecting links – Absence of registered agreement does not absolve liability – Writ petitions dismissed (Paras 16-17, 26-29).
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Issue of Consideration: The Issue of whether recovery proceedings for maintenance dues initiated under Section 154B-29 of Maharashtra Cooperative Societies Act, 1960 against flat occupants were barred by limitation and whether statutory liability could be imposed retrospectively
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Final Decision
The Bombay High Court upheld the recovery certificates issued by the cooperative housing society and dismissed all the writ petitions. It held that recovery of maintenance and service charges under Section 154B-29 of the Maharashtra Cooperative Societies Act is not barred by limitation, as such dues are recurring and constitute a continuing liability. The Court further ruled that persons in possession or enjoyment of the flats are liable to clear society dues even in the absence of a registered sale agreement or formal society membership.
