Question 1

Can you give a dated, step-by-step timeline from a missed bill to a recovery certificate?

Accepted Answer

Yes. With a bill served on 1 Apr and a 15-day payment period, interest starts on 16 Apr, the member becomes a defaulter after 15 Jul, notices and resolutions follow, and a Form Y-6 application can be filed. The Registrar then has fixed steps: 7 days to cure defects, notice within 15 days of registration, and a decision aimed at within 3 months of the first hearing. Synthetic timeline (dates illustrative): - 1 Apr: April bill served. Payment period 15 days (general-body resolution), due 15 Apr. - 16 Apr: interest starts at the general-body rate, at most 12 % simple (Rule 106C-12(4) item 6;
  dBL 66).
- 15 Jul: three months from the due date (later than the service date). The member is now a
  defaulter (dBL 4(xiv), 65(a); Form Y-6 para 4). The Secretary places the case before the
  committee (BL 69(a)).
- 20 Jul: demand notice by registered post or hand delivery against acknowledgement, stating the
  amount, interest rate and that a s.154B-29 application will follow if unpaid. This also starts the
  three-month clock for committee disqualification (BL 116(b)).
- 20 Aug: final notice. - 5 Sep: committee resolution to file and authorising an office-bearer; general-body resolution
  as Form Y-6 para 6 recites (often a standing AGM resolution).
- 1 Oct: Form Y-6 filed with ₹100 court fee, authority letter, certified ledger, resolutions on the
  levy and on interest, treasury challan and notice copies (Rule 106C-14(1)-(2)).
- Within 7 days of any objection: cure defects, or the application is dismissed (106C-14(3)(b)-(c)). - Within 15 days of registration: Registrar's notice to the member (106C-14(3)(d)). - Hearing: written statement; first adjournment up to 15 days (106C-14(4)(a)). - Decision: every endeavour within 3 months of the first hearing; reasoned order and certificate in
  Form Y-7 (106C-14(6)-(7)), enforceable without a separate execution application.

Question 2

When exactly does a member who is late become a "defaulter", and is that the same as being disqualified from the committee?

Accepted Answer

No, they are two different clocks. A member becomes a defaulter when dues stay unpaid three months after the bill was served or the due date, whichever is later. Committee disqualification runs from a separate written demand notice served by hand or registered post: three months after that notice. Three clocks run from different starting points: 1. Interest: from the day after the payment period (dBL 66; BL 70). 2. Defaulter status: "fails to pay the dues ... within three months from the date of service of
   bill or notice or due date of payment, whichever is later" (dBL 4(xiv), 65(a)). Form Y-6 uses
   the same test (para 4).
3. Committee eligibility: a person who "defaults the payment of dues ... within three months from
   the date of service of notice in writing, served either by hand delivery or by registered post,
   demanding the payment" cannot be elected or co-opted (BL 116(b)); the draft adds Speed Post and
   applies it to sitting members too (dBL 112(a)). The Act has a matching disqualification
   (s.154B-23).
Synthetic example: bill served 1 Jun, due 15 Jun. Defaulter from 16 Sep (three months after 15 Jun). The society serves a written demand by registered post on 1 Oct; if still unpaid on 2 Jan, the member is disqualified from standing for, or continuing on, the committee. A member who pays late but inside the three months is not a defaulter, though he owes interest. A defaulter who clears everything stops being one.

Question 3

What notices must the society send before it applies for a recovery certificate, and what should they say?

Accepted Answer

At least one written demand notice, and in practice a final notice, sent by registered post, hand delivery with acknowledgement or courier, warning that a s.154B-29 application will follow. A copy of the notice must go with the application, and Form Y-6 expects copies with proof of delivery. Rule 106C-14(2)(f) requires "a copy of the notice issued by the society" with the application. Form Y-6 recites that the society sent due notice "by the registered post / hand delivery with acknowledgement / Courier", demanded the amount and told the respondents that an application under s.154B-29 would be filed if they did not pay (para 7). The verification asks for "copies of the Notices dated ..., ... and ... sent to the Respondent and the acknowledgment thereof". A notice that works should state: - the member's name, flat and the period of dues; - principal by head and interest, with the rate and the resolution fixing it; - the total and a date to pay (for example 15 days); - that failing payment the society will apply under s.154B-29 and claim costs; - that the notice is also a demand for the purpose of committee eligibility (BL 116(b)). Keep the postal receipt and tracking, or the member's signed acknowledgement. If the letter comes back unclaimed, keep the returned envelope unopened; it helps prove attempted service. Two notices a month apart are common and match the form's "notices dated" wording; the Rules do not fix a number.

Question 4

Does the general body have to pass a resolution for every recovery case, or is a committee resolution enough?

Accepted Answer

Form Y-6 recites both a committee and a general-body resolution to file the application and authorise an office-bearer. The safe practice is a standing general-body resolution authorising the committee to file against defaulters, plus a committee resolution naming each case and the person who will sign. What the texts ask for: - Rule 106C-14(2)(a): "a letter of authority, authorizing an officer or a representative to submit
  the application and represent the society".
- Rule 106C-14(2)(c)-(d): certified copies of the resolutions approving the levy of charges (or
  major repair fund or construction costs) and approving simple interest. These are usually AGM
  resolutions.
- Form Y-6 para 6: the "Committee members and the General Body have passed a resolution" on stated
  dates to file under s.154B-29, to execute the certificate under s.156 and Rule 107, and to
  authorise the Secretary, Chairman or Treasurer. The verification lists "Resolutions passed in the
  meeting of the Committee Member and the General Body Meeting".
- Form Y-7 lists only the committee's resolution among the documents filed. Practical approach: at the AGM, pass a standing resolution that the committee shall file s.154B-29 applications against any member who is a defaulter, and execute any certificate. Then, for each case, a committee resolution identifying the member, the amount and the authorised office-bearer. File both with the application. This avoids calling a general meeting for every defaulter while matching the form's recitals.

Question 5

What does a recovery application cost the society, and which of those costs can be recovered from the defaulter?

Accepted Answer

The court fee is ₹100. The society may also spend on postage, a newspaper notice if the member cannot be found, process fees and an advocate. The application can ask for costs and expenses, and the Registrar's certificate in Form Y-7 lists the costs, fees and other expenses allowed, which are then recoverable with the dues. Fees and costs named in the texts: - ₹100 court fee with Form Y-6 (Rule 106C-14(1)(a)), paid by treasury challan or other proof
  (106C-14(2)(e)).
- Cost of a newspaper notice where the opponent cannot easily be found, borne by the applicant
  (106C-14(3)(e), (g)).
- Form Y-6 lets the society include "other expenses such as notice fees & postage" (para 9), refers
  to process fees and ad valorem stamp (para 13), and prays that the certificate include "expenses
  incurred by the applicant for filing the application with the process fees" (para 14(a)).
- Form Y-7 has lines for "Cost & Fees of this application", "Other Expenses", and a list of
  expenses: stamp, cost and fees of inquiry, public-notice fee and other expenses.
Synthetic example: dues ₹84,000 plus interest ₹6,500; costs ₹100 fee, ₹240 registered post, ₹1,800 newspaper notice. If the Registrar allows them, the certificate covers ₹92,640 plus simple interest from the date of filing until payment. Advocate's fees: a society may engage an advocate; whether the fee is allowed as "other expenses" is the Registrar's call. What is not allowed stays with the society as a legal charge (a service charge). Execution may need a deposit towards process costs (Rule 107(2)).

Question 6

The defaulter's flat is locked and he cannot be traced. Can the recovery case still go ahead?

Accepted Answer

Yes. If the opponent cannot easily be found, the Registrar may serve notice by publishing a public notice in at least one local daily newspaper, with Civil Procedure Code rules on substituted service applying. The society pays for the publication and can claim it as an expense. The case can then proceed ex parte. Rule 106C-14(3)(e) allows the Registrar's notice to be served "through hand delivery, registered post acknowledgment due, or if the opponent could not be easily found by publication of public notice thereof in at least one local daily newspaper". The Code of Civil Procedure applies "mutatis mutandis" to such notice (106C-14(3)(f)), and the applicant bears the cost (106C-14(3)(g)). What the society should do: - Give the Registrar the flat address, any last-known address and e-mail or phone on record, and the
  returned registered-post covers from its own notices.
- Explain the attempts made (visits, letters returned "unclaimed" or "left"). - When directed, arrange the newspaper publication and file the paper cutting. - If the member still does not appear, the Registrar, after being satisfied that notice was duly
  served, orders the society to prove its claim and decides ex parte (106C-14(4)(b)). If the member
  later appears and shows sufficient cause before the decision, he is heard.
The certificate is then executed through the recovery officer; a locked flat can be attached and sold under Rule 107 if movable property is not available. Tenants or occupiers in the flat can also be named as respondents (Form Y-6 para 2).

Question 7

What happens if the defaulter, or the society's own representative, does not turn up at the Registrar's hearing?

Accepted Answer

If the member stays away after due service, the Registrar makes the society prove its claim and can decide ex parte. If the society stays away but the member appears, the claim is not dismissed for that reason: the Registrar may treat the member's presence as admission and issue the certificate, and in any case decides on merits. Rule 106C-14(4) sets out the consequences: - Member absent: if the society appears and any opponent does not, the Registrar, after checking
  that all opponents were duly served, orders the society to prove the claim on the next date and
  decides ex parte (106C-14(4)(b)).
- Member returns late: before the decision, if he appears and shows "sufficient cause" for not
  appearing earlier, he is heard as if he had appeared on the first day (proviso to (4)(b)).
- Society absent: if the opponent appears and the society does not, the Registrar "may issue a
  recovery certificate in Form Y-7 as admittance by the opponent" ((4)(c)(i)), and non-appearance
  of the society "would not be reason for dismissal of the claim"; the Registrar decides on merit
  ((4)(c)(ii)).
Also relevant: the first adjournment to file a written statement is limited to 15 days ((4)(a)); a member may appear personally, through an advocate or through a representative. For a member: attending with a written statement and documents is the only way to put your side. After a certificate issues, a civil court will not entertain a challenge; the route is revision (see defaulters_recovery-009).

Question 8

During a recovery hearing, can the member demand to see the society's ledgers, resolutions and bills?

Accepted Answer

Yes, within limits. Parties file the documents they rely on with their pleadings. If a relevant document is with the other side, the Registrar can order it produced, draw an adverse inference if it is not, or allow inspection within seven days. The member must first file his written statement. Rule 106C-14(5) deals with documents: - Each party files the documents referred to in its application or written statement when it files
  them ((5)(a)).
- If the Registrar is satisfied that a relevant document is in the other party's custody, he may
  order it produced on the next date. An application for this from the defendant is not
  entertained before he files his written statement ((5)(a) proviso).
- If the party fails to produce it, the Registrar may draw an adverse inference, and the hearing is
  not postponed for that reason ((5)(b)).
- If the documents cannot be brought for sufficient reason, the Registrar may allow the defendant
  to inspect them within seven days of the order ((5)(c)).
- If the defendant had no earlier access and an additional statement is needed, the Registrar may
  allow it ((5)(d)).
Documents a member typically asks for: the personal ledger from the start of the dispute, the AGM resolutions fixing each rate and the interest, the bills and proof of their service, and the notices with acknowledgements. Separately, as a member he has a statutory right to inspect and obtain copies of society records (s.154B-8), which he can use before the hearing.

Question 9

Our recovery application has been pending with the Registrar for over a year. Is there a time limit, and what can we do?

Accepted Answer

The Rules ask the Registrar to make every endeavour to decide within three months of the first hearing, and to record reasons if it takes longer. It is a direction, not an automatic result. The society can write to the Registrar and the superior officer citing Rule 106C-14(6)(b); if the Registrar refuses to act on a wrong view of jurisdiction, the High Court has intervened. Rule 106C-14(6)(b) says "every endeavour shall be made by the Registrar to decide the application within three months from the first date of hearing", with a proviso requiring reasons in writing for going beyond. Other steps also have clocks: registration after scrutiny, notice within 15 days of registration (106C-14(3)(d)), first adjournment up to 15 days (106C-14(4)(a)). Practical steps when a case stalls: 1. Check the society has done its part: defects cured within 7 days, notices paid for, documents
   filed, representative present at each date.
2. File a short application asking for an early date and a decision, citing the three-month
   direction.
3. Write to the District Deputy Registrar or Divisional Joint Registrar, attaching the case history. 4. Where the Registrar declines to decide, for example by sending the society to the Co-operative
   Court, a writ petition has been entertained: the High Court in Legacy CHS held s.154B-29 a special
   remedy and set aside such an order.
Meanwhile interest keeps running on the dues at the society's rate, and the member remains a defaulter with the consequences that follow.

Question 10

We have a recovery certificate in Form Y-7. How is it actually enforced, and can the defaulter's flat be sold?

Accepted Answer

Through the recovery machinery under s.156 of the Act and Rule 107, as arrears of land revenue, with no separate execution application needed. The recovery officer issues a demand notice and proceeds first against movable property; if that is not enough, against immovable property, which can include the flat, by attachment and auction. Form Y-7 orders that the amount be recovered "as arrears of Land Revenue" under the Maharashtra Land Revenue Code 1966, or through officers delegated powers under s.156 and Rule 107, and states "There is no need to file a separate application for implementation of this recovery certificate". The 2026 amendment added s.154B-29 certificates to Rule 107(1)(e) and its proviso. How Rule 107 execution runs, in outline: - The recovery officer checks the particulars and prepares a demand notice setting out the defaulter
  and amount, sent to the sale officer (r.107(3)).
- Unless the applicant chose an order, movable property is proceeded against first; immovable
  property may be proceeded against if there is none or it is not enough, and simultaneously in case
  of necessity (r.107(4)).
- The sale officer serves the demand notice; if not paid at once, he attaches (distrains) property
  between sunrise and sunset, not in excess of what is due (r.107(5)(a), (c), (d)).
- No sale takes place until 15 days after the sale notice (r.107(5)(i)). - The society may have to deposit process costs (r.107(2)). Synthetic example: certificate for ₹1,10,000. The member pays after the demand notice: the matter closes with costs. If not, bank accounts or other movables are attached; if still short, the flat can be attached and auctioned, and the society's charge on the flat (s.154B-14) travels with it, as the High Court held for an auction buyer in Monarch Orchid.

Question 11

After the Registrar issues a recovery certificate, does interest keep running, and at what rate?

Accepted Answer

Yes. Form Y-7 orders simple interest from the date the application was filed until full payment, excluding any amounts already deposited. The rate is the one the society prayed for in Form Y-6; for periods from 22 Jun 2026 it should not exceed 12 % simple. The certificate in Form Y-7 lists the claim amount, costs and other expenses, and orders the society "to recover interest at simple interest from the date of filing this application till the date of full repayment excluding any such amount that might have been deposited by the respondents towards the dues". The society's prayer in Form Y-6 asks for "interest at the rate of ...% p.a. from the date of filing the application till the final payment" (para 14(a)). So interest is in two parts: - up to the filing date, inside the claim amount, at the general-body rate (Form Y-6 para 9(2)); - from the filing date, at the rate stated in the certificate, simple. Synthetic example: claim of ₹90,000 principal and ₹8,000 interest filed on 1 Oct 2026; certificate at 12 % a year. If the member pays on 31 Mar 2027 (181 days), post-filing interest is ₹90,000 × 12 % × 181/365 = ₹5,355.62. Whether post-filing interest runs on the principal alone or on the whole claim depends on the certificate's wording; the principle of simple interest points to principal. The 12 % cap in Rule 106C-12(4) item 6 applies to interest on defaulted charges; applying it to post-filing interest is our reading.

Question 12

The defaulter paid everything after we filed the recovery application. What happens to the case and the costs?

Accepted Answer

Tell the Registrar in writing that the dues have been paid and either withdraw the application or ask that it be disposed of as satisfied, claiming the costs already incurred if they were not paid. Any part payment is shown so that the certificate, if one issues, excludes amounts deposited. The Rules do not provide a separate withdrawal procedure, but the Form Y-7 certificate itself excludes "any such amount that might have been deposited by the respondents towards the dues". What to do: - Full payment of dues, interest and the expenses claimed: file a short letter or application with
  the receipt, stating the claim is satisfied, and ask for the application to be disposed of as
  withdrawn. Record this in a committee meeting.
- Payment of dues but not costs: state the balance (court fee, notice and postage, publication) and
  ask the Registrar to decide it; or waive small costs by a committee decision that is minuted.
- Part payment: file an updated certified ledger so the Registrar works on the correct balance. Synthetic example: application for ₹72,000 plus ₹2,140 expenses. The member pays ₹72,000 during the hearing. The society files the receipt and asks for a certificate only for ₹2,140 and post-filing interest, or settles for ₹2,140 and withdraws. Once dues are cleared the member stops being a defaulter; for committee eligibility, what matters is whether he had failed to pay within three months of the written demand.

Question 13

Our flat is in the joint names of my brother and me. He stopped paying his half. Can the society recover the whole amount from me?

Accepted Answer

Yes. The society deals with the flat as one unit and its dues as one account. Form Y-6 treats all respondents as jointly and severally liable, so the society can name both of you and recover the full amount from either. Your right to a contribution from your brother is a matter between you. Rule 106C-14(1)(c) requires the application to state whether each person claimed from is a member. Form Y-6 allows respondents who are members, joint members, associate or provisional members or occupiers of the flat, and states: "All the Respondents are jointly and severally liable for the said defaulted amount" (para 4). The bill is raised on the flat; the society is not required to split it by the co-owners' private shares. Synthetic example: dues on the flat ₹48,000. The society files against both joint members. The certificate is for ₹48,000 plus costs and interest, recoverable from either or both. If you pay ₹48,000, you can claim ₹24,000 from your brother under the general law of co-owners and contribution (a civil matter), not through the society. Consequences for you: while the flat's dues are unpaid after the three-month mark, you are exposed to the defaulter consequences too, including committee ineligibility after a written demand (BL 116(b); dBL 112(a)). Paying the whole and recovering from your brother avoids that. The first-named member in the share certificate is the one who votes (BL 104-105), but liability for dues does not depend on the order of names.

Question 14

A member died leaving arrears. The nominee has applied to become a provisional member. Can the society refuse until the arrears are paid, and who owes them?

Accepted Answer

The society should not hold up a nominee's or heir's provisional membership only for arrears, because the dues-first rule for transfers does not apply to heirs and nominees. But the arrears do not disappear: the Form Y-4 applicant undertakes to discharge present and future liabilities, the society keeps its charge on the deceased member's interest, and it can recover from the estate's holders or occupiers. Rule 106C-6(1) sets out provisional membership for a nominee (Form Y-4 with an indemnity bond) or, if there is no nominee, for a legal heir after a newspaper notice. Form Y-4 contains the applicant's statement "I undertake to discharge the present and future liabilities to the society". Form Y-5 (heirs under a registered family arrangement) has the same undertaking. The Act makes a transfer not effective until dues are paid, except for transfers to an heir or nominee (s.154B-7, as summarised in defaulters_recovery-006). The society also has a first charge on a deceased member's interest for outstanding dues (s.47(1)(b)) and a charge under s.154B-14. Practical course: - Process the Y-4 application on its merits; do not make clearing arrears a condition. - Give the provisional member a statement of the arrears, point to the undertaking, and agree a
  timetable.
- If unpaid, a s.154B-29 application can name the provisional member, the heirs and any occupier;
  the High Court has allowed recovery against legal heirs and occupiers (Aspandiar, para 20).
A provisional member has no ownership and is not on the share certificate (Rule 106C-6(1)(g)); the final transfer to the heirs remains subject to the society's charge.

Question 15

The society has a "first charge" on a defaulter's flat. Does that mean the society itself can sell or lock the flat?

Accepted Answer

No. The charge means the society's dues rank first against the member's interest in the property and that the interest cannot be transferred without clearing them. The society cannot sell, lock or occupy the flat on its own. A sale happens only through a recovery certificate executed by the recovery officer. Section 47(1)(b) of the Act makes outstanding dues payable by a member, past member or deceased member "a first charge upon his interest in the immovable property of the society", subject to any prior claim of Government for land revenue. Section 47(2)-(3) bars transfer of property subject to the charge without the society's previous permission, and makes a transfer in breach void. The draft 2026 bye-laws repeat that the society has a first charge on a member's shares and interest and may set off amounts payable to him (dBL 71). The Act's housing chapter adds a charge under s.154B-14 and the dues-first transfer rule in s.154B-7. What the charge gives the society: - priority over the member's other unsecured creditors in the flat; - leverage at any sale: the buyer is not admitted until dues are paid, even after a bank auction
  (Monarch Orchid; Tanvis Diamoda).
What it does not give: - a right to lock the flat, cut services or take possession (see defaulters_recovery-003); - a power of sale without a certificate. To realise the charge, obtain a Form Y-7 certificate and ask the recovery officer to proceed against the flat under Rule 107 if movables are insufficient.

Question 16

A defaulter has money lying with the society, such as a deposit or an advance. Can the society adjust it against his dues?

Accepted Answer

Yes, where the society's bye-laws allow it — and both the 2014 model bye-laws (BL 73) and the draft 2026 bye-laws (dBL 71) do: the society may set off any amount credited to or payable to the member against his dues. The Act's own set-off section (s.46) no longer applies to housing societies, so the power rests on the bye-laws. Record the set-off in the ledger and tell the member in writing. Share capital is different: it is repaid only when membership ends. The 2014 model bye-laws give the society a charge on a member's shares and interest and on any dividend, bonus or profits payable to him, and say it "may set off any sum credited by or payable to a Member" towards his charges (BL 73). The draft 2026 bye-laws say the same (dBL 71). BL 73 refers to s.46 of the Act, but since 2019 s.46 does not apply to housing societies (s.154B(2)); the power therefore comes from the registered bye-laws. Section 47(1)(b), which does apply, makes a member's dues a first charge on his interest in the society's immovable property. Typical items that can be set off: an advance or excess payment shown as a credit in the member's ledger; a refundable deposit (for example an interior-work damage deposit) once its purpose is over, subject to any deduction the deposit terms allow; any dividend or other amount payable to him. Synthetic example: arrears ₹21,500; the member has a ₹10,000 interior-work deposit whose work was completed without damage. The committee resolves to set off ₹10,000; arrears fall to ₹11,500 and interest runs only on that from the date of set-off. Share capital (for example ₹500) is refunded only on cessation of membership, when dues are deducted first (BL 30, 63 for the 2014 procedure). A deposit held for a purpose that is still running should not be taken early. Give the member a written statement of the adjustment; it helps avoid a later dispute.

Question 17

Can the society refuse a defaulter the NOCs he asks for, such as for a home loan, letting the flat, a passport or an electricity meter?

Accepted Answer

Mostly no. Withholding documents is not a recovery method the law provides. For a sale or transfer, dues must be cleared before the transfer takes effect, so the society can insist on that. For letting, no NOC is needed at all; a housing loan to buy the flat needs no permission; and certificates the member needs for public authorities should state the facts, not be withheld to force payment. - Transfer or sale: a transfer (other than to an heir or nominee) is not effective until the
  society's dues are paid (s.154B-7), and the society has a charge on the interest (s.154B-14,
  s.47(2)). Refusing to process the transfer until dues are cleared is lawful.
- Leave and licence: no permission of the society is required; the member only intimates the
  society 8 days in advance with the agreement and police intimation copy (BL 42). A "NOC" cannot be
  demanded, so it cannot be withheld.
- Mortgage for a purchase loan: no permission is required to mortgage the flat to obtain a loan to
  buy it (BL 43 proviso). Banks often still ask for a letter; the society can give one that states
  the dues outstanding.
- Passport, gas, electricity meter and similar: these are certificates of residence or consent to
  works. They are not a society's leverage for dues. A letter stating facts, including any dues, is
  the safer course.
The draft 2026 bye-laws also prohibit collecting "donations" as a condition for any permission or NOC (dBL 12(vi)(a)(iii)). Arrears are recovered through s.154B-29; refusing unrelated NOCs invites a complaint to the Registrar or a consumer complaint.

Question 18

Can the committee stop a defaulter from using the clubhouse, gym or a second parking slot until he pays?

Accepted Answer

Essential services, no. Optional amenities are a grey area: the draft 2026 bye-laws allow suspending an additional parking slot for non-payment of parking charges after a hearing, but no text allows a general ban on amenities for arrears. Any restriction should be a general-body rule, applied to all, after notice and hearing. What the texts say: - Cutting water, electricity or lift access is not allowed (defaulters_recovery-003). - Parking: under the draft 2026 bye-laws unpaid parking charges are dues recoverable like any other,
  and the committee "may suspend the use of an additional parking space" where a member defaults in
  parking charges or breaches the parking policy, "after giving the Member a reasonable opportunity
  of being heard" (dBL 80(vi)-(vii)). It does not extend to the member's first slot.
- Amenities: amenities charges are shared equally by members (Rule 106C-12(4) item 11(viii)). A
  member pays for them whether or not he uses them. Nothing in the Rules links access to payment.
If a society wants a rule that members with arrears above a set amount cannot book the hall or join paid classes, the safer path is: a general-body resolution, applied to all equally, notice to the member, a chance to be heard, and a record of the decision. A penalty for breach of bye-laws under BL 164 follows its own procedure and is capped at ₹5,000 a year. Denying amenities does not replace recovery; pursue s.154B-29 for the dues.

Question 19

A defaulter offers to clear arrears in instalments if we waive the interest. Can the committee agree?

Accepted Answer

The committee can agree an instalment plan, in writing, without giving up anything. It should not waive accrued interest on its own: interest is part of the dues, and writing off dues needs the auditor's certificate and a general-body resolution. A lower interest rate for the future is a general-body decision that must apply to all. Instalments: the committee is responsible for recovery (BL 69; dBL 65) and can agree a schedule as a way of recovering. Put it in a signed letter: total dues on a date, the instalments and due dates, that interest continues on the unpaid balance, and that on any missed instalment the whole balance falls due and the society may file under s.154B-29. Waiving interest: the 2014 bye-laws allow writing off members' dues only if certified irrecoverable by the statutory auditor and sanctioned by the general body, with other approvals where the society owes a financing agency (BL 148-149). The draft 2026 bye-laws say expressly that write-off covers "maintenance charges, interest, recovery expenses, legal expenses", needs all reasonable recovery steps, the auditor's certificate, recorded reasons and a general-body resolution, and does not extinguish the right to recover (dBL 144). Interest that is recoverable is not "irrecoverable". Synthetic example: arrears ₹60,000 principal and ₹7,200 interest. Plan: ₹10,000 now and ₹6,000 a month for about ten months, interest continuing at the general-body rate. If the member keeps to it, the committee may propose to the AGM a policy for interest relief that applies to everyone in the same position; it cannot do a private deal.

Question 20

Can the AGM announce a one-time "amnesty" waiving interest for all defaulters who pay the principal by a date?

Accepted Answer

It is legally uncertain. The general body fixes the interest rate, so it can lower the rate for the future for everyone. Waiving interest already due is closer to a write-off, which the bye-laws allow only for amounts the auditor certifies as irrecoverable. If a society tries it, the scheme should be open to every member on the same terms and be put to the auditor first. Arguments for: the general body fixes the rate of interest "not exceeding" 12 % simple (Rule 106C-12(4) item 6) and is the supreme authority (Rule 106C-13(3)(a)). A resolution reducing the rate prospectively is clearly within its power. Arguments against a retrospective waiver: interest already charged is part of the dues. The 2014 bye-laws allow writing off members' dues only when the statutory auditor certifies them irrecoverable, the general body sanctions it and, unless the society is audit class A or B with a sufficient Bad Debt Fund, the financing agency (if the society owes it money) and the Registering Authority approve (BL 148-149). The draft 2026 bye-laws require all reasonable recovery steps first, treat interest as part of what may be written off, and say a write-off is only an accounting entry that does not waive the right to recover (dBL 144). A blanket waiver of recoverable interest also shifts cost to members who paid on time. Older arrears: interest charged before 22 Jun 2026 at a rate above 12 % (the 2014 model allowed up to 21 %, BL 70) is not an amnesty question. The Rules have no transition clause for such arrears; the safe course is to charge no more than 12 % simple for any period from 22 Jun 2026 on all arrears, old or new, and to take advice before recovering more than 12 % for earlier periods. If the society goes ahead with an amnesty anyway: frame it as a scheme open to all members with arrears on a stated date, on the same terms; quantify the interest forgone in the AGM notice; get the statutory auditor's view before the meeting; record the resolution and apply it mechanically. Synthetic example: 6 defaulters owe ₹4,20,000 principal and ₹38,000 interest. A scheme that waives interest for payment by 31 Dec costs the society ₹38,000; members who paid on time effectively bear it. That is the point members will debate.

Question 21

The committee is not acting against a big defaulter, who happens to be close to an office-bearer. What can ordinary members do?

Accepted Answer

Raise it in writing with the committee, then at the general body, which can direct the committee to file. The model bye-laws put a duty on the committee to initiate recovery. If it still does not act, complain to the Registrar, and point the statutory auditor to the arrears. A committee member who is himself a defaulter loses his seat. The duty: the Secretary must bring defaults to the committee (BL 69(a)), and in default of payment "the committee shall initiate a recovery proceeding" (BL 69(b)); the draft says the committee "shall initiate appropriate recovery proceedings ... including recovery under section 154B-29" (dBL 65(b)). The Rules make the committee responsible for executing general-body decisions (Rule 106C-13(2)(a)). Steps for members: 1. Written request to the committee asking for the recovery status of arrears above a stated amount
   (without naming others publicly; see defaulters_recovery-004 on privacy).
2. Inspect the arrears position in the accounts (s.154B-8). 3. Move a resolution at the AGM, or requisition a special general meeting, directing the committee to
   file within a set time.
4. Complaint to the Registrar about non-action, with the resolution and the committee's reply. 5. Bring it to the statutory auditor, whose report goes to the general body and the Registrar. Personal liability of committee members for loss (s.88 surcharge) requires foundational material from an audit, inquiry or inspection, not suspicion (Sudhir Diwan). If the defaulter is himself on the committee, he is disqualified once he fails to pay within three months of a written demand (s.154B-23; BL 116(b)).

Question 22

Should the society go to the Co-operative Court under s.91, or file a civil suit, instead of applying under s.154B-29?

Accepted Answer

For ordinary dues, s.154B-29 is the designed route and the High Court has treated it as a special remedy that overrides ss.91, 93 and 98. A s.91 dispute suits claims that need full adjudication, such as damages or disputed liability for repairs. A civil suit is rarely the right forum for dues. Section 154B-29, with Rule 106C-14, gives housing societies a summary procedure: application in Form Y-6, notice, hearing, and a certificate in Form Y-7 executable as arrears of land revenue. In Legacy CHS (2024) the High Court held that s.154B-29 overrides ss.91, 93 and 98 and that the Registrar was wrong to send a society to the Co-operative Court (paras 6-9). When s.91 may still be used: - a claim for damages (for example, water damage caused by a member's unauthorised work) where the
  amount and liability must be proved;
- disputes about the validity of a levy or resolution, which members also bring under s.91; - mixed disputes where dues are only part of the relief. Even then, where the draft 2026 bye-laws allow the society to carry out repairs and "recover the actual cost incurred from the Member as dues", that amount can be billed and recovered like other dues if the bye-law is adopted. Civil court: s.154B-29(3) and the certificate's finality make the civil court the wrong forum to challenge a certificate (Aspandiar, para 18), and a society gains nothing by suing for dues. Synthetic example: arrears ₹95,000 go under s.154B-29; a ₹2,40,000 claim for damage to the flat below caused by a member's tiling work goes to the Co-operative Court.

Question 23

A member sold his flat and left without clearing old arrears, and we admitted the buyer anyway. Can we still recover from the seller?

Accepted Answer

Yes, for the period he was the member or in possession. His liability for that period survives the sale, and the Act's charge covers dues of a past member. The seller's own transfer papers usually contain an undertaking to discharge liabilities up to the transfer. The buyer is a separate question. Past members: s.47(1)(b) makes dues of "any member or past member or deceased member" a first charge on his interest. The High Court has said that for the period during which a person was a member or in possession, the liability is enforceable even if recovery is initiated later (Aspandiar, para 20), and that s.154B-29 recovery is not barred by lapse of time (paras 19, 22-23). Documents: the 2014 transfer forms have the transferor declare the liabilities due on the date of the application and undertake to discharge any liabilities relating to the period before the transfer. Keep those papers; they are strong evidence. Procedure: a Form Y-6 application states whether the respondent is a member or not (Rule 106C-14(1)(c)); name the former member, give his last known address, and use newspaper service if he cannot be traced (106C-14(3)(e)). The buyer: admitting him without clearing dues does not by itself make him liable for the seller's period. If he gave an undertaking to pay past dues, that may be enforceable against him too. Lesson for the committee: under s.154B-7 a transfer (other than to an heir or nominee) is not effective until dues are paid; insist on a dues-clearance statement before admitting a buyer.

Question 24

I have received the Registrar's notice on a recovery application but I think the claim is wrong. What defences can I raise?

Accepted Answer

File a written statement on the date fixed, with documents. You can show payments not credited, charges not approved by a general-body resolution, interest above the lawful rate or compounded, charges shared on a wrong basis, or that you were not the member or occupier for the period. Ask for the society's documents if needed. Do not ignore the notice: the case can be decided without you. Procedure: appear personally or through an advocate or representative and file a written statement; the first adjournment is limited to 15 days (Rule 106C-14(4)(a)). If you do not appear, the case can go ex parte (106C-14(4)(b)). You may ask the Registrar to order the society to produce documents after you file your statement (106C-14(5)). Common points of defence, each needing proof: - Payments not credited: receipts, bank statements, UPI references. - Levy not approved: the society must attach certified resolutions approving the charges and the
  interest (106C-14(2)(c)-(d)); if a head or rate has no resolution, say so.
- Interest: above 12 % simple for periods from 22 Jun 2026, compounded, or charged during the payment
  period.
- Wrong basis: service charges not split equally per flat, non-occupancy charges above 10 % of
  service charges, fund contributions not on construction cost.
- Wrong person or period: you were not the member or in possession then. What rarely works: withholding because of a grievance about services (maintenance_charges-007), or that the dues are old (Aspandiar held s.154B-29 is not barred by lapse of time, para 19). After a certificate issues, the remedy is revision under s.154, usually with a part deposit; a civil court will not hear a challenge (defaulters_recovery-009).

Question 25

How does a housing society recover unpaid maintenance through the Registrar?

Accepted Answer

It applies to the Registrar under s.154B-29 in Form Y-6 with a Rs 100 court fee. The application attaches the member's certified ledger, the resolutions approving the charges and the interest, and the demand notice. After a hearing, the Registrar issues a recovery certificate in Form Y-7, which is enforced as arrears of land revenue. Section 154B-29, in Chapter XIII-B inserted in 2019, replaces s.101 for housing-society dues. It applies "notwithstanding" ss.91, 93 and 98. The Registrar may also act on his own motion if the society does not (s.154B-29(2)). The certificate is final and can be challenged only in revision under s.154 (s.154B-29(3)). The Collector and the Registrar may take precautionary measures under the Land Revenue Code, such as attachment, until the dues are paid (s.154B-29(4)). The procedure is Rule 106C-14: - Application in Form Y-6 with a Rs 100 court fee. It states whether the opponent is a member
  (106C-14(1)).
- Attach an authority letter, the certified ledger, certified copies of the resolutions that
  approve the levy and the simple interest, the fee challan and the society's notice
  (106C-14(2)).
- The Registrar gives 7 days to cure defects, then registers the application (106C-14(3)(b)-(c)). - Notice goes to the opponent within 15 days of registration, by hand, registered AD or a
  newspaper notice (106C-14(3)(d)-(e)).
- The first adjournment for the written statement is at most 15 days (106C-14(4)(a)). - The Registrar should decide within 3 months of the first hearing (106C-14(6)(b)). - A reasoned order is passed and the certificate issued in Form Y-7 (106C-14(7)). Form Y-6 treats dues unpaid within three months of the bill or its due date as arrears. Good practice before filing is a written demand and two registered reminders that warn of s.154B-29. The 2014 bye-laws require the committee to start recovery on default (BL 69(b), which still names s.101). The draft 2026 bye-laws name s.154B-29 (dBL 65(b)).

Question 26

Can the society recover dues from a tenant, an occupant who is not a member, or the legal heirs of a deceased member?

Accepted Answer

Yes. A recovery application can be made against a member, a flat owner or an occupier. The High Court has allowed recovery certificates against legal heirs, and against occupants who were never admitted as members. "Defaulter" in Chapter XIII-B covers a member, flat owner or occupier who fails to pay within three months of the bill (s.154B-1; dBL 4(xiv)). Rule 106C-14(1)(c) requires the application to say whether the opponent is a member. In Legacy CHS (2024) the Deputy Registrar refused a certificate against a deceased member's heirs as too complicated. The High Court quashed that refusal and sent the matter back. In Aspandiar (2026) occupants who had never been admitted as members were held liable, because they "represented the premises" (para 20). A tenant under leave and licence has no direct liability to the society under the bye-laws. The member remains answerable. Name the member as the opponent, and add the occupier only where the facts support it.

Question 27

Can the committee cut off water, electricity or lift access to a defaulter's flat?

Accepted Answer

No. Nothing in the Act, the Rules or the model bye-laws allows the society to cut essential services to force payment. The lawful route is recovery through the Registrar under s.154B-29, with interest and, if needed, attachment. Cutting services exposes the committee to complaints, police action and claims. The Act gives societies a strong recovery remedy: a certificate enforced as arrears of land revenue, with precautionary attachment (s.154B-29). It does not give self-help powers. - The bye-laws list the Society's charges and how they are recovered (BL 64-70; Rule 106C-12).
  Disconnection is not among them.
- The draft 2026 bye-laws treat water supply, lifts and electricity as essential services the
  society must keep running (for example dBL 170(d)).
- Electricity is supplied under a contract between the member and the distribution licensee,
  and only the licensee may disconnect under the Electricity Act 2003.
In Tungare (Feb 2026) the High Court said recovery proceedings, interest and attachment are the remedies for arrears, and that expulsion is "not a substitute for recovery" (para 10). It gave disconnecting water as an example of conduct that paralyses collective life (para 13). Some High Court orders have refused writ relief to heavy defaulters whose water was cut. We could not confirm any judgment that approves disconnection as a recovery method. A member whose supply is cut can complain to the Registrar and the police, or raise a s.91 dispute. Consult an advocate.

Question 28

Can the society put defaulters' names on the notice board or in the WhatsApp group?

Accepted Answer

Be careful. The committee must review defaults and the general body may see the position of arrears. Nothing in the Act or bye-laws authorises naming defaulters publicly. From 13 May 2027 the DPDP Act also restricts using members' personal data beyond its purpose. Tell the member privately and report arrears to the committee and general body without names where you can. The Secretary must bring defaults to the committee (BL 69(a); dBL 65(a)). A member's right to inspect the books covers only the portions recording that member's own transactions (s.154B-8(1)). The Act does not give members a right to see other members' ledgers. The draft 2026 bye-laws tell societies not to disclose members' personal or sensitive information except where the law requires it (note to dBL 39). A society holding members' data is a data fiduciary under the DPDP Act 2023. Its duties of notice, purpose limitation and security apply from 13 May 2027 (DPDP Rules 2025 r.1(4)). A public list can also invite a defamation complaint if it is wrong or stale. What is safe: - individual demand notices by registered post or email; - an arrears statement in the committee minutes; - an aggregate figure in the annual report; - the names of defaulters who are committee candidates, to the Returning Officer, where
  eligibility turns on it.

Question 29

Can a member who is in arrears stand for the managing committee or stay on it?

Accepted Answer

No. A defaulter of any society cannot be elected, co-opted or nominated to the committee. A sitting committee member who becomes a defaulter ceases to hold the seat. Section 154B-23(1)(i) bars a person who "is a defaulter of any society". Under s.154B-23(2) a disqualified member ceases to be on the committee and the seat falls vacant. A default disqualification does not carry the five-year bar in s.154B-23(3). The person becomes eligible again once the default is cleared (s.154B-23(4)). BL 116(b) and dBL 112(a) say the same thing in bye-law terms: dues unpaid three months after a written demand served by hand, registered post or speed post. The Returning Officer rejects the nomination of a disqualified candidate (ER Part X-1A, 76-I). The model bye-laws do not take away a defaulter's vote at a general body meeting; see elections-004.

Question 30

A flat is sold with arrears pending. Can the society refuse to admit the buyer until they are paid?

Accepted Answer

Yes. A transfer of a member's share and interest, other than to an heir or nominee, is not effective until the society's dues are paid. The society has a charge on the share and interest for those dues. In July 2026 the High Court applied this even to a bank-auction buyer. Section 154B-7 restricts transfers until the dues are paid. Section 154B-14 gives the society a charge on the share and interest of a member, past member or deceased member for the dues. In Monarch Orchid the buyers had purchased at a bank auction. The High Court held that the charge travelled with the flat and that they could not claim membership without clearing the past dues. The Registrar's orders directing their admission were set aside. On the society's offer, the court let the buyers pay the principal for the period before purchase without interest. The same judgment held that a pending s.91 recovery dispute does not stop the society relying on s.154B-7. The committee should not use s.154B-7 to block membership indefinitely where the dues are genuinely disputed. It should give a clear dues statement quickly (BL 27 allows 15 days on resignation).

Question 31

Can the society expel a member who does not pay maintenance?

Accepted Answer

Only as a last resort, and only through the full expulsion procedure with the Registrar's approval. The High Court has said that expulsion is "not a substitute for recovery". Use s.154B-29 first. BL 48(a) lists persistent failure to pay as a ground for expulsion. Expulsion needs a show-cause notice, a hearing, a general-body resolution and the Registrar's approval (s.35; BL 48-53). In Tungare (Feb 2026) the High Court read "acts detrimental to the interest of the society" narrowly. Filing complaints and litigation is not misconduct. Arrears are "a separate statutory breach" with their own remedies: recovery proceedings, interest, penalties and attachment (para 10). The court reasoned that expulsion strikes at residence itself, so it needs strict scrutiny (para 5).

Question 32

Can the committee write off dues it cannot recover?

Accepted Answer

Only after every recovery step has been exhausted, with the auditor's certificate, the committee's reasons and a general-body resolution. A write-off does not extinguish the society's right to recover later. BL 148-149 of the 2014 bye-laws allow writing off irrecoverable charges only when recovery has failed. The written-off amount must be certified by the auditor and approved by the general body. The draft 2026 bye-laws add a Register of Written-off Dues and state that the write-off does not extinguish the right to recover (dBL 144-145). Because the High Court has held that s.154B-29 recovery is not time-barred (Aspandiar, see maintenance_charges-006), a write-off should be rare and fully documented.

Question 33

I have received a recovery certificate. How can I challenge it?

Accepted Answer

By revision under s.154, filed with the revisional authority. A civil court cannot question the certificate. The revisional authority normally requires part of the amount to be deposited first. Consult an advocate quickly. Section 154B-29(3) makes the certificate "final and a conclusive proof of the arrears" and provides that it "shall not be liable to be questioned in any court". The only remedy is revision in the manner of s.154. In Aspandiar the petitioners had to deposit 50 % of the dues before the revisional authority, under s.154(2A) (para 6). The High Court's writ jurisdiction under Article 226 remains, but it is used sparingly. Defences that can succeed: - no valid resolution approving the levy or the interest; - wrong calculations; - amounts already paid; - the opponent was not the member or occupier for the period. Rule 106C-14(4)(b) protects an opponent who shows sufficient cause for missing earlier hearings.

Question 34

The interest cap came down from 21 % to 12 % in June 2026. What about interest on arrears that were already due before that?

Accepted Answer

From 22 Jun 2026 no society may charge more than 12 % simple interest a year on any outstanding dues, whatever its bye-laws say. Interest already charged for periods before that date, at a general-body rate within the old 21 % cap, is not wiped out by the Rules. For the period from 22 Jun 2026 onward, charge at most 12 % on the whole outstanding. Rule 106C-12(4) item 6 fixes interest on defaulted charges at "the rate fixed by the general body not exceeding simple interest 12% per annum". The Rules came into force on publication, 22 Jun 2026, and bind every housing society over its bye-laws (see mh-2026-rules). BL 70 of the 2014 bye-laws had allowed 21 % or a lower general-body rate. The Rules contain no clause making the new cap retrospective. The safer reading has two parts: - interest that accrued up to 21 Jun 2026 at a lawful rate stays payable; - from 22 Jun 2026 the rate on all dues, old and new, is capped at 12 % simple. Societies should therefore: - pass a general-body resolution fixing the rate at 12 % or less; - recompute ledgers so that no interest above 12 % accrues from 22 Jun 2026; - never compound interest. The draft 2026 bye-laws add two points: no interest during the payment period, and 12 % applies if the general body has fixed no rate (dBL 66). A recovery application under s.154B-29 must attach the certified resolutions approving the interest (Rule 106C-14). An over-charged interest line invites an objection before the Registrar.

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