by In the intricate landscape of cooperative housing societies, financial disputes between societies and their members can occasionally necessitate legal action to resolve. When all attempts at reconciliation fail, societies often resort to filing a recovery suit under Section 154B-29(2) of the Maharashtra Cooperative Societies (MCS) Act, 1960. This blog aims to elucidate the essential documents required for initiating such legal proceedings, ensuring clarity and compliance with statutory requirements.
Understanding the Legal Framework
The MCS Act, 1960 provides a structured framework for the governance and management of cooperative societies in Maharashtra. Section 154B-29(2) specifically pertains to the recovery of dues and outlines the procedural steps and documentation necessary to file a recovery suit before the Deputy Registrar of Cooperative Societies.
Section 154B-29 (1): Notwithstanding anything contained in sections 91, 93 and 98, on an application made by a housing society for the recovery of its dues or for the recovery of its repairs and maintenance, construction cost and service charges, and on the housing society concerned furnishing a statement of accounts and any other documents as may be prescribed, in respect of the arrears, the Registrar may, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated therein, to be due as arrears.
Section 154B-29 (2): Where the Registrar is satisfied that the concerned society has failed to take action under the foregoing sub-section in respect of any amount due as arrears, the Registrar may, on his motion, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated therein, to be due as arrears and such a certificate shall be deemed to have been issued as if on an application made by the society concerned.
Section 154B-29 (3): A certificate granted by the Registrar under sub-section (1) or (2) shall be final and a conclusive proof of the arrears stated to be due therein, and the same shall be recoverable according to the law for the time being in force, as arrears of land revenue. A revision shall lie against such order or grant of certificate, in the manner laid down under section 154 and such certificate shall not be liable to be questioned in any court.
Section 154B-29 (4): It shall be lawful for the Collector and the Registrar to take precautionary measures in accordance with the provisions of the Maharashtra Land Revenue Code, 1966 or any law or provisions corresponding thereto for the time being in force, until the arrears due to the concerned society, together with interest and any incidental charges incurred in the recovery of such arrears, are paid, or security for payment of such arrears is furnished to the satisfaction of the Registrar.
Documents Required for Filing a Recovery Suit:
- Application in prescribed format.
- Stamp Paper of Rs.100/- (please verify current rate from Maharashtra Stamp Act).
- Membership entrance Date proof.
- Extract of defaulter members ledger (3 certified copies)
- Final Notice issued by the Society (sending bill is sufficient & sending separate notice is not required).
- Resolution copy if an authorized officer appointed by managing committee or Vakalt Nama in favour of Lawyer.
- Resolution copy for maintenance fee structure and interest charges or a copy of respective Bye-Laws.
- Copy of resolution about initiating recovery process under sec. 154(B)(29) (formerly known as 101)
- Payment of Inquiry fee, Court Fee and Notice fee to be deposited with government treasury after the challan is approved by DR/AR.
Common grounds of “Disputes” for Default :
- NOC charged beyond 10% of Service Charges.
- Compound interest (Interest on Interest) charged instead of Simple Interest.
- Leakage of Flat-from outside, from upper flat or adjoining flat.
- Repairing of common areas not done to the expectation of some members.
- Major Repair, panting not carried out.
- AGM are not conducted in time or regularly, Accounts not circulated.
- Transfer or Transmission of Flat not happened.
- Attending to complaints-not done properly or not done at all.
- Levy of fines, penalty for breach of bye laws.
- Intra Members disputes resulting in major altercation.
- Legal heir/Nominee not admitted as member of Society.
- Funds misappropriated by members of the Managing Committee, office bearers.
- Dues from Builder as regards unsold flats.
- Penalty/Charges/Fines are levied which are not specified in Bye laws, Rules or MCS Act.
Conclusion:
Filing a recovery suit under Section 154B-29(2) of the MCS Act, 1960 demands meticulous preparation and adherence to legal procedures. By compiling and submitting the above-mentioned documents, a housing society can effectively pursue its claim against a member for unpaid dues, ensuring compliance with legal requirements and safeguarding the society’s financial stability.
It is imperative for cooperative housing societies to maintain transparency and adherence to statutory frameworks to resolve disputes efficiently and uphold the principles of justice prescribed by the MCS Act, 1960. Should you find yourself in a similar situation, seeking guidance from legal experts specializing in cooperative society laws is advisable to navigate the process effectively.
In essence, proactive management of documentation ensures that the interests of the housing society are protected while upholding the integrity of cooperative governance principles under the MCS Act, 1960.
Disclaimer:
This blog provides general guidance and should not substitute for professional legal advice tailored to specific circumstances. Each case may require individualized legal counsel to ensure proper handling of legal proceedings.
