Society’s dues not recoverable after three years

vector-skyline-36By Accommodation Times News Services

By Vinod Sampat, Advocate

 

If a member is in default and if recovery proceedings are initiated against him, then the provisions of the law of limitation will be applicable. The implication of the judgement, delivered by Bombay High Court on 7th October 2003 in the case of “Versova Gardens CHS Ltd. V/s. Divn. Jt. Reg. (C.S) Mumbai, is that if the Society has not recovered the dues from the defaulting member for three years, then it will be difficult for the society to recover under section 101 of the Maharashtra Co-operative Societies Act, 1960.

Section 101 of the Maharashtra Co-operative Societies Act, 1960 stipulates that if a member of the CO-operative Housing Society has not paid his dues, then the speedy procedure to recover the dues can be invoked by initiating action under Section 101 of the Maharashtra Co-operative Societies Act, 1960 are completed within four months. Legal hurdles with regard to the recording of evidence are not applicable for proceedings initiated under Section 101 of the Maharashtra Co-operative Societies Act, 1960. The Registrar of Co-operative Societies is a quasi judicial authority. One does not have to appoint an Advocate to initiate action u/s 101 of the Maharashtra Co-operative Societies Act, 1960.





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2 thoughts on “Society’s dues not recoverable after three years

  1. sir , thanks u article is helfully . But I have 2 cases of practical , for advice which socity at large may benifit ,
    1) builder has sold one flat two buyers, both have paid stamp duty purchaser’ A’ is an invensator pays part money to builder, for a flat , society is formed , obtains share certficate a copy only ” but does not pay balance amount , builder selll to purchase B, who pays full price of the flat , issue a letter of allotment etc . then socirty refruses to issue or regularise the sale, purcaser B is in physical postion for over 8years , then soicrty issue sec 101 proceding for revovery of soicety maintance charges, purchase B , pays and clears dues , but no society maiantance bill is isssued on his name , issue stil unresoled , society says get NOC from purchaser A,, purchasesays builer has to pay balance amount for investment of 4 other flats , till builder settle the issue NO NOC SHALL BE ISSUED : what shall purchaser B do to obtain share certficate , who is still paying society montly dues without is name recipt . yr suggestion sir ,

    case 2) sir101 is applicale only to reg. share holders – members. still thereare 5members who are in postion , where claims is about 5-20 laks against the non memebers , will sec 101 by society help to recover , as purchaser says issue bill on our name , we all will pay , your suggestion to sole this isssue .

  2. For recovery of dues, maintenance and service charges, a Forum is provided under section 101 of the Mah Coop. Societies Act. If the proceedings are barred by limitation, how the same will be maintainable under different Forum?

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