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2026 Supreme(Bom) 22

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR, J.
Aspandiar Rashid Irani – Appellant
Versus
Pasayadan Cooperative Housing Society Limited – Respondent
Writ Petition Nos. 8044, 8045, 8046, 8155 of 2025
Decided On : 16-01-2026

Advocates Appeared:
For the Appellant : A.R. Gole
For the Respondents: N.N. Bhadrashete, Priyanka Bhadrashete, P.J. Gavhane, D.S. Deshmukh, M.S. Shrivastav, A.R. Deolekar

Obligations to pay society dues are recurring duties that do not extinguish over time, allowing recovery at any point under Section 154B-29 of the Maharashtra Cooperative Societies Act.

Headnote:(A) Maharashtra Cooperative Societies Act, 1960 - Section 154B-29 - Limitation Act, 1963 - Recovery of maintenance dues - Petitioners contended that recovery applications were time-barred and that they were not members of the society, hence recovery could not be initiated - Court held that dues are recurring obligations, and Section 154B-29 does not impose a limitation period for recovery of society dues. (Paras 4, 19, 20, 26)

(B) Jurisdiction of authorities - Role of the Deputy Registrar under Section 154B-29 is judicial in nature, and the authority can issue recovery certificates without being impeded by issues of limitation. (Paras 15, 18)

Facts of the case:
Petitioners claimed failure to pay maintenance dues from 2005 by the society was barred by limitation and argued they were not members, hence no recovery could occur. Society contended petitioners acted as promoters and therefore are accountable for dues. (Paras 2, 4)

Findings of Court:
Dues are statutory obligations subject to recovery without a specified limitation period, relationship governed by the Cooperative Societies Act and the society's bye-laws, defining obligations as ongoing. (Paras 15, 19, 22)

Issues: The court addressed whether recovery proceedings could proceed despite the passage of time and the status of petitioners as members or flat owners. (Paras 4, 5, 26)

Ratio Decidendi: Obligations to pay society dues are ongoing and do not extinguish with time; hence recovery can be made regardless of when it is initiated. (Paras 19, 25)

Result: Writ petitions dismissed.

Judgement Key Points

Key Points: - Obligations to pay society dues are recurring duties that do not extinguish over time, allowing recovery at any point under Section 154B-29 of the Maharashtra Cooperative Societies Act [judgement_subject]. - Dues are statutory obligations subject to recovery without a specified limitation period, with the relationship governed by the Cooperative Societies Act and the society's bye-laws, defining obligations as ongoing [judgement_act_referred]. - The Deputy Registrar's role under Section 154B-29 is judicial, and the authority can issue recovery certificates without being impeded by issues of limitation [judgement_act_referred]. - The court held that dues are recurring obligations, and Section 154B-29 does not impose a limitation period for recovery of society dues [judgement_act_referred]. - The petitioners contended that recovery applications were time-barred and that they were not members of the society, hence recovery could not be initiated [judgement_act_referred]. - The court addressed whether recovery proceedings could proceed despite the passage of time and the status of petitioners as members or flat owners [judgement_subject]. - Obligations to pay society dues are ongoing and do not extinguish with time; hence recovery can be made regardless of when it is initiated [judgement_subject]. - The writ petitions were dismissed [judgement_subject]. - Section 154B-29 provides a self-contained and special mechanism for effective recovery of society dues (!) . - There is nothing in Section 154B-29 which prescribes any period of limitation, nor is there any indication that the Limitation Act is attracted (!) . - The obligation to pay society dues is a recurring and continuing obligation (!) . - The liability for society dues is enforceable even if recovery is initiated later, as the liability does not vanish merely because ownership changes (!) . - The petitioners' contention that unregistered agreements do not confer housing rights was addressed [Table of Content]. - The court found no valid ground to set aside the judgment and order passed by the authorities, as they acted within their powers (!) .

What is the limitation period for the recovery of society dues under Section 154B-29 of the Maharashtra Cooperative Societies Act?

What is the nature of obligations to pay society dues?

What is the role of the Deputy Registrar in the recovery of society dues under Section 154B-29?


Table of Content
1. unregistered agreements do not confer housing rights. (Para 2 , 3 , 26)
2. arguments on membership and obligation to pay dues. (Para 4 , 7 , 11 , 12 , 14 , 28)
3. dues are statutory and contractual obligations. (Para 15 , 16 , 17)
4. non-payment of dues is a continuing obligation. (Para 18 , 19 , 21 , 22)
5. promoters have duties under housing laws. (Para 24 , 25 , 27)
6. judgment dismissal affirmed with no grounds for stay. (Para 29 , 30 , 31)

JUDGMENT :

AMIT BORKAR, J.

1. As the questions of law and fact arising in all these writ petitions are identical, it is appropriate to decide all the writ petitions together by a common Judgment and Order.

2. The facts necessary for deciding this group of writ petitions are taken from Writ Petition No. 8045 of 2025. The petitioners state that on 26 September 1996, they entered into an unregistered development agreement with one P and M Associates. Under the said agreement, the agreed consideration was four flats on the fourth floor, which was later changed to the fifth floor. After the construction was completed, respondent No. 1 society came to be registered on 18 May 2005. In terms of the development agreement, the petitioners were put in possession of four flats on the fifth floor. It is the case of the petitioners that no registered agreement was ever executed in their favour. It is further their case that after they were put in possession, the society neither issued maintenance bills nor raised any demand for maintenance charges from them.

3. On 29 March 2023, the society issued a demand notice calling upon the petitioners to pay arrears of maintenance from the year 2005. As the said amount was not paid, the society, on 27 September 2024, filed four applications under Section 154B-29 of the Maharashtra Cooperative Societies Act, 1960 for recovery of alleged maintenance dues along with service charges.

4. The petitioners filed their reply on 29 November 2023. They raised a specific objection of limitation and contended that, in view of the provisions of the LIMITATION ACT read with Section 92 (2) of the MCS Act, the recovery applications were clearly barred by limitation. They also contended that they are not members of the society and, therefore, no recovery proceedings under Section 154B-29 could be initiated against them. It was further contended that prior to the amendment of the year 2019, by which a separate chapter for housing societies was introduced, the earlier provisions of Section 101 of the MCS Act could not have been invoked against the petitioners. It was also pointed out that there was no resolution of the society authorising initiation of recovery proceedings.

5. The Deputy Registrar, by order dated 15 March 2024, rejected all the defences raised by the petitioners and issued four recovery certificates against them.

6. Aggrieved by the order passed under Section 154B-29 of the MCS Act, the petitioners preferred revision applications and, as required, deposited 50 percent of the alleged dues before the revisional authority. The revisional authority, by the impugned order dated 28 April 2025, dismissed the revision applications. Consequently, the petitioners have approached this Court by filing the present writ petitions.

7. Mr. Gole, Learned Advocate appearing for the petitioners, submitted that the applications filed by the society in the year 2023 seek recovery of arrears from the year 2005 without furnishing any proper calculation or breakup indicating the relevant period. He submitted that such applications are clearly barred by the law of limitation. He contended that the Registrar exercising powers under Section 154B-29 of the MCS Act acts as a Court within the meaning of Section 156(2) of the said Act. Therefore, by virtue of Article 137 of the LIMITATION ACT , 1963, a recovery application can be entertained only within three years from the date of default. He further submitted that even if it is assumed that the society had issued bills and that dues

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