Section 154B-29 of the Maharashtra Cooperative Societies Act, 1960 – Certificate for recovery of maintenance against legal representatives

Section 154B-29 of the Maharashtra Cooperative Societies Act, 1960 – Certificate for recovery of maintenance against legal representatives – Maintainable

Respondent No.1 is the occupant of flat no.102 along with late Mrs. Chander Chawla.   The petitioner society of twelve members made an application for certificate against the respondent no.2 for recovery of maintenance of Rs.30,17,655/- as on 1.4.2022.

Respondent No.1 Deputy Registrar rejected the said application on the ground that issuance of such certificate against legal representatives involve complicated question of law and fact which is beyond his powers.  Therefore, the society needs to approach the Cooperative Court under Section 91 of the Act.

HELD that considering the unique nature of housing societies, the legislature introduced a separate chapter to deal with cooperative housing society and its members.  Separate definitions are provided under Chapter 154B-1, whereas, separate provisions for registration, membership, voting rights, transfer of interest and management are made.  Section 154B-29 provides for recovery of sums of housing society as arrears of land revenue.  Sub-section (1) starts with non-obstante clause giving overriding effect on sections 91,93 and 98 of the Act. Sub-section (2) of Section 154B-29 is in contradistinction with section 101 of the Act. It creates an obligation and satisfaction of the Registrar that the housing society has failed to take action under sub-section (1) of Section 154B-29 to initiate proceedings for recovery of amounts.   It requires the Registrar, on its own motion after inquiry, to grant a certificate for recovery and same is treated as conclusive proof under sub-section (3).   Such dues will be recovered as arrears of land revenue in addition to the modes provided in section 156.  Thus, the respondent no.1 has failed to exercise its jurisdiction on application of Section 77F of the Rules which is not applicable to section 154B-2.

Failure to exercise jurisdiction by illegal parameters has resulted in a miscarriage of justice and defeated the purpose of the introduction of Chapter XIII-B of the Act.  Non-recovery of huge maintenance amount by a small society will have huge impact and would also result in taking away express statutory rights of a housing society.   Moreover, it will be failure to exercise obligation cast on the Registrar under sub-section (2) of Section 154B-29(2) of the Act.

Judgment dated 19.3.2024 in W.P.No.2221 of 2024 of Legacy Coop. Housing Society Ltd Vs. Deputy Registrar, Coop Societies.

Circumvention not possible 

There is no way to circumvent the application of clause 154B-29 of the Maharashtra Co-operative Societies Act, 1960. However, the government may extend the period for completing proceedings under this clause if required. 

Explanation

Clause 154B-29 of the Maharashtra Co-operative Societies Act, 1960, gives the Registrar the power to grant a certificate for recovery of dues from housing societies. 

The Registrar can grant this certificate if the housing society has not taken action to recover dues. 

The certificate is treated as conclusive proof and the dues are recovered as arrears of land revenue. 

The government may extend the period for completing proceedings under clause 154B-29 if required.

What is Arrears of Land Revenue?

Arrears of land revenue is the amount of land revenue that is unpaid after the specified due date. The Revenue Recovery Act, 1890 and the Maharashtra Land Revenue Code, 1966 provide the process for recovering arrears of land revenue. 

How is arrears of land revenue recovered? 

Arrest and detention: The defaulter can be arrested and detained.

Attachment and sale of property: The defaulter's movable and immovable property can be attached and sold.

Attachment of bank accounts: The defaulter's bank accounts or lockers can be attached.

Lease or sale of land: The land for which the arrears are due can be leased or sold.

Appointment of receiver: A receiver can be appointed for the defaulter's movable or immovable property.

Who is responsible for recovering arrears of land revenue?

The District Collector or Tahsildar is responsible for initiating recovery proceedings. 

The Collector can send a certificate to the Collector of another district if the arrear is payable to a defaulter in a different district.