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.
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).
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.
Citation: 2026 LawText (BOM) (01) 64
Case Number: Writ Petition No. 8044 of 2025 with Writ Petition No. 8045 of 2025, Writ Petition No. 8155 of 2025, Writ Petition No. 8046 of 2025
Date of Decision: 2026-01-16
Case Title: 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
Before Judge: Amit Borkar J.
Advocate(s): Mr. A.R. Gole for petitioners, Mr. N.N. Bhadrashete i/by Ms. Priyanka Bhadrashete for respondent No.1, Smt. P.J. Gavhane AGP for State in WP/8044/2025, Smt. D.S. Deshmukh AGP for State in WP/8045/2025, Smt. M.S. Shrivastav AGP for State in WP/8155/2025, Mr. A.R. Deolekar AGP for State in WP/8046/2025
Appellant: Aspandiar Rashid Irani, Gustad Rashid Irani
Respondent: Pasayadan Cooperative Housing Society Limited, The Deputy Registrar of Cooperative Societies Thane City, Divisional Joint Registrar of Coop. Societies Konkan Division, Ujjvala C. Jadhav
Nature of Litigation: Writ petitions challenging recovery certificates issued by Deputy Registrar under Section 154B-29 of Maharashtra Cooperative Societies Act, 1960
Remedy Sought: Petitioners seeking quashing of recovery certificates for maintenance dues issued against them
Filing Reason: Aggrieved by revisional authority's order dated April 28, 2025 dismissing their revision applications against Deputy Registrar's recovery certificates
Previous Decisions: Deputy Registrar issued recovery certificates on March 15, 2024 -- Revisional authority dismissed revision applications on April 28, 2025
Issues: Whether recovery applications under Section 154B-29 of MCS Act for maintenance dues from 2005 filed in 2023 were barred by limitation Whether petitioners could be treated as flat owners liable for dues under MCS Act provisions given absence of registered agreement Whether statutory liability under Chapter VIII-A of MCS Act introduced in 2019 could apply retrospectively
Submissions/Arguments: Recovery applications barred by limitation under Article 137 of Limitation Act, 1963 as filed beyond three years from cause of action -- Petitioners not members of society and recovery under Section 101 of MCS Act restricted to members only -- Liability under Chapter VIII-A of MCS Act operates prospectively from March 9, 2019 -- No registered agreement executed as required under Section 4 of MOFA, thus petitioners not flat owners -- No resolution authorizing initiation of recovery proceedings
Ratio Decidendi: Recovery of maintenance and service charges under Section 154B-29 of the Maharashtra Cooperative Societies Act, 1960 is a special, self-contained statutory mechanism not governed by the Limitation Act. Such dues are recurring statutory obligations constituting a continuing wrong, and liability attaches to the premises, making the person in possession or enjoyment of the flat liable irrespective of formal membership or the existence of a registered sale agreement.
Judgment Excerpts: “Society dues such as maintenance charges and service charges are recurring statutory obligations arising from occupation and enjoyment of the premises and do not get extinguished merely by passage of time.” “Section 154B-29 operates as a special recovery provision with overriding effect, and the Limitation Act cannot be imported to defeat recovery of cooperative society dues.” “Liability to pay society dues follows the flat and is enforceable against the person who represents the premises in law by possession or enjoyment, irrespective of formal membership.”
Procedural History: September 26, 1996: Petitioners entered unregistered development agreement -- May 2007: Petitioners put in possession of flats -- March 29, 2023: Society issued demand notice for arrears from 2005 -- September 27, 2024: Society filed recovery applications under Section 154B-29 of MCS Act -- November 29, 2023: Petitioners filed reply raising limitation objection -- March 15, 2024: Deputy Registrar issued recovery certificates -- April 28, 2025: Revisional authority dismissed revision applications -- 2025: Petitioners filed writ petitions before High Court -- January 16, 2026: High Court delivered judgment
