Can Housing Societies Recover Old Maintenance Dues? Bombay High Court Says ‘Yes’

The Bombay High Court has ruled that unpaid housing society maintenance charges are a continuing liability and can be recovered even after several years. The judgment strengthens the legal powers of cooperative housing societies to recover long-pending dues from flat occupants.

In a significant ruling for cooperative housing societies, the Bombay High Court has upheld the right of societies to recover long-pending maintenance and service charges from flat occupants, stating that such dues are “recurring and continuing liabilities.”

Justice Amit Borkar dismissed a petition filed by two elderly brothers from Thane who had challenged recovery proceedings initiated by their housing society. The petitioners argued that the recovery was time-barred and that they could not be held liable because they were not officially registered flat owners under the Maharashtra Ownership Flats Act (MOFA).

However, the court rejected these arguments and clarified that maintenance dues do not expire merely because several years have passed.

According to the judgment, Section 154B-29 of the Maharashtra Cooperative Societies Act provides a special mechanism for recovery of society dues and does not prescribe any limitation period. The court observed that when a special law creates a specific right and recovery process, general limitation rules do not automatically apply.

The court further stated that people occupying flats, paying taxes and enjoying society services can still be held liable for maintenance dues even if there is no registered ownership agreement.

The case involved occupants who had received possession of flats under an unregistered development agreement in 1996. Despite the absence of formal registration, the court held that they continued to benefit from society facilities and therefore could not avoid their financial responsibilities.

The ruling is expected to have a major impact on housing societies across Maharashtra and potentially influence similar disputes elsewhere in India.

Legal experts say the judgment clearly establishes that maintenance charges are not treated as one-time dues. Every month of non-payment creates a fresh default, allowing societies to continue recovery proceedings even for dues pending for 10 to 15 years.

The court also reinforced that liability is connected to the property itself and not only to formal ownership status. This means even tenants or occupants using society services may be required to pay maintenance charges.

Housing societies may also charge interest on unpaid dues if their bylaws permit it. In some cases, societies can impose interest rates of up to 21 per cent annually on outstanding amounts.

The judgment is being viewed as a strong legal backing for cooperative housing societies struggling with unpaid maintenance charges, as delayed payments often create financial pressure on daily operations, repairs and common facilities.

Experts advise residents to regularly monitor maintenance statements, clear pending dues on time and understand society bylaws to avoid legal disputes and mounting interest burdens.

For housing societies, the ruling highlights the importance of maintaining proper records, issuing timely notices and following transparent recovery procedures.

Disclaimer: This article is for informational purposes only and should not be considered legal advice. Readers should consult qualified legal professionals for case-specific guidance.