Co-operative Housing Society Maintenance Dues Are Continuing Liabilities and Not Barred by Limitation

The petitioners were allotted four flats under an unregistered development agreement and were put in possession of the flats. A co-operative housing society was later formed and registered in 2005. The petitioners did not pay any society maintenance or service charges from 2005 onwards.

In 2023, the society issued a demand notice seeking recovery of maintenance dues from 2005 along with interest at 21%. When payment was not made, the society initiated recovery proceedings under Section 154B-29 of the Maharashtra Co-operative Societies Act, 1960. The Registrar issued recovery certificates treating the dues as recoverable arrears.

The petitioners challenged the recovery on multiple grounds, including limitation, non-membership of the society, absence of a registered sale agreement, and lack of authority to recover dues prior to the 2019 amendment to the Act.

The Bombay High Court rejected all objections and upheld the recovery proceedings. The Court held that the obligation to pay society dues is both statutory and contractual, arising from occupation and enjoyment of the premises. Maintenance and service charges are recurring obligations and do not get extinguished merely due to lapse of time.

The Court emphasized that co-operative housing societies function on principles of self-governance and collective responsibility. Non-payment by some members directly frustrates the purpose of society registration and imposes unfair burdens on compliant members.

It was further held that Section 154B-29 provides a special and self-contained mechanism for recovery of society dues, overriding general dispute and limitation provisions. Since the statute does not prescribe any limitation period, members cannot import limitation principles from general civil law to defeat statutory recovery.

• Housing society maintenance dues do not become time-barred merely because they were not demanded for several years.

• Occupation and enjoyment of a flat creates a continuing liability, even in the absence of formal membership or a registered sale agreement.

• Societies can recover long-pending dues as arrears of land revenue under Section 154B-29.

• Interest on arrears (including high rates like 21%) is legally valid if authorised by bye-laws or AGM resolutions.

• Flat owners, promoters, and occupants cannot avoid liability by relying on technical objections such as limitation or non-membership.

This judgment explains in detail the statutory nature of co-operative housing societies, the concept of continuing wrong, and the legislative intent behind Section 154B-29, emphasizing financial discipline and sustainability of housing societies.

The complete judgment PDF is uploaded below for detailed facts, statutory interpretation, and reasoning.