Bombay High Court
Saraf Kaskar Industrial Premises ... vs The District Deputy Registrar ... on 19 September, 2025
Author: Amit Borkar
Bench: Amit Borkar
2025:BHC-AS:39254
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Ashish
ASHISH Digitally signed by
ASHISH SAHEBRAO
SAHEBRAO MHASKE
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Date: 2025.09.19
MHASKE 18:19:05 +0530
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 14996 OF 2024
WITH
WRIT PETITION NO.16514 OF 2024
WITH
WRIT PETITION NO.16515 OF 2024
WITH
WRIT PETITION NO.16517 OF 2024
Saraf Kaskar Industrial Premises
Cooperative Society Ltd ... Petitioner
V/s.
The District Deputy Registrar
Cooperative Societies and anr ... Respondents
Mr. Nikhil Dongre a/w Mr. Omkar Kudale, for the
Petitioners.
Sr. Advocate Atul Damle, a/w Mr. Chirag Dave, Mr.
Shubham Kalbere i/b Legasis Partners for respondent
no.3.
Mr. V.R. Raje, AGP for State, in WP No. 14996 of 2024,
WP No. 16514 of 2024.
Mr. P.V. Nelson Rajan, AGP for State, in WP No. 16515
of 2024.
Ms. Sulbha Chipade, AGP for State in WP No.16517 fo
2024.
CORAM : AMIT BORKAR, J.
DATED : SEPTEMBER 19, 2025
P.C.:
1. The present petition challenges the order passed by the
Deputy Registrar under Section 154B-29 of the Maharashtra Co-
operative Societies Act, 1960. By the said order, the Deputy
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Registrar rejected the application filed by the Industrial Premises
Co-operative Housing Society for recovery of maintenance charges.
The authority held that the matter raised complicated questions of
law and fact, and therefore, the proper remedy available to the
Society was to file a dispute under Section 91 of the Act.
2. From the reasons recorded in the impugned order, it is clear
that the authority formed an opinion that certain payments said to
have been made earlier by the members were not reflected in the
Society's accounts.
3. The authority also noted that though the Society had treated
the members as defaulters from the year 1982, no prompt steps for
recovery of the dues were taken, and no explanation was offered
for this delay. Further, from the documents produced by the
Society, the exact amount recoverable could not be determined
with certainty. The authority ultimately held that issues such as
whether arrears of maintenance exist from the year 1982, whether
the amount claimed is disputed, and whether there is any
challenge to the resolution of the Society, are matters that cannot
be decided in summary proceedings under Section 154B-29 of the
Act. It was thus concluded that the proper course for the Industrial
Premises Co-operative Housing Society is to seek remedy before
the Co-operative Court under Section 91 of the Maharashtra Co-
operative Societies Act, 1960.
4. It is not in dispute that both parties are governed by Section
154B-29 of the Maharashtra Co-operative Societies Act. This
provision was inserted by Maharashtra Amendment Act 23 of
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2019, in substitution of the earlier Section 101 of the Act, which
had provided for summary adjudication of Society's dues. By
insertion of Chapter XIII-B, Section 154B-29 has been enacted to
empower the Registrar with a mechanism to recover sums and
arrears due to Housing Societies, treating them in the same
manner as arrears of land revenue. The provision opens with a
non-obstante clause, making it clear that, notwithstanding
anything contained in Section 91 of the Act, a Housing Society can
apply for recovery of its dues, including maintenance, repair
charges, or other charges prescribed therein, by producing a
statement of accounts and such documents as are prescribed. The
Registrar is, therefore, vested with authority to hold a summary
enquiry and, after giving an opportunity of hearing to the member
concerned, issue a certificate for recovery.
5. The nature of the material placed before the Registrar under
Section 154B-29 has to be viewed in the context of the summary
character of the proceedings. The law does not envisage a full-
scale trial or examination of oral evidence. The parties are not
entitled to lead witnesses or conduct cross-examination. The
Registrar is required to consider only the documents placed on
record. These may include the statement of accounts maintained
by the Society in the ordinary course of its business, resolutions
passed in meetings, receipts, and such other documents as the
Rules require the Society to maintain. On the basis of these
documents, and after giving a fair opportunity of hearing, the
Registrar has to adjudicate the quantum of dues claimed by the
Housing Society.
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6. In such proceedings, the scope of enquiry is limited. The
authority has to verify, from the accounts and documents, whether
the claim of arrears is borne out by records and whether any part
of the claim has been satisfied by payments reflected in the
member's documents. The questions are confined to verification of
the amount due or adjustment of payments, which are essentially
matters of accounting. The legislative intent of providing a
summary remedy would be frustrated if every dispute regarding
arrears is treated as involving complicated questions of law and
fact. Such an approach would render the special provision under
Section 154B-29 redundant, compelling Societies to approach the
Co-operative Court under Section 91 in every case.
7. In my considered view, therefore, the authority under the Act
cannot shirk its statutory responsibility to adjudicate the quantum
of dues under Section 154B-29 by resorting to a general
observation that the matter involves complicated questions of law
and fact. The jurisdiction entrusted to the Registrar is meant to
provide a speedy and effective mechanism for Housing Societies to
recover their legitimate dues. Unless the dispute involves issues
that clearly travel beyond the scope of summary enquiry, the
Registrar is bound to apply his mind to the documents on record
and arrive at a finding on the arrears claimed by the Society.
8. The Registrar, while exercising powers under Section 154B-
29 of the Maharashtra Co-operative Societies Act, is not expected
to conduct a full-fledged trial like a Co-operative Court. At the
same time, the Registrar cannot act mechanically. He is duty-bound
to apply his mind to the claim put forward by the Society and the
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defence raised by the members. The law requires him to examine
whether, on the basis of documents produced, the Society has at
least prima facie established its claim.
9. This means that the Registrar has to scrutinise the accounts,
receipts, and resolutions of the Society. He must verify whether the
amount claimed is supported by reliable records. He must also
consider whether the members have produced any material
showing that payments made by them have not been credited or
that the calculation of dues is doubtful. The Registrar's role is to
strike a balance. He cannot ignore genuine objections raised by
members, but he also cannot permit the recovery machinery to be
stalled by frivolous or vague objections.
10. If the documents clearly establish the existence of arrears,
the Registrar may issue recovery certificates. However, where the
accounts are incomplete, where earlier payments are not reflected,
or where there is serious doubt about the accuracy of the claim,
the Registrar must refrain from issuing recovery certificates until
claim of the parties is established to the satisfaction of Registrar.
11. In my considered view, therefore, the application filed by the
Petitioner Society could not have been dismissed merely on the
ground that it involves complicated questions of law and fact. The
very object of Section 154B-29 is to provide a summary remedy to
Housing Societies for recovery of their legitimate dues. The
Registrar is empowered to examine the statement of accounts and
supporting documents, hear the defence of the members, and
determine whether arrears are due. The authority cannot decline
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jurisdiction by adopting a broad and vague reasoning of
complexity when the statute itself mandates adjudication in a
summary manner on the basis of records.
12. For these reasons, the impugned orders cannot be sustained
in law. The orders are accordingly set aside. The proceedings
initiated by the Petitioner Society are restored to the file of the
Deputy Registrar of Co-operative Societies, K-West Ward, Mumbai.
The Deputy Registrar shall grant adequate opportunity to both
parties to file documents in support of their respective claims and
defences. After giving fair hearing to both sides, the Deputy
Registrar shall apply his mind to the material on record and record
a clear finding regarding the quantum of amount payable, if any,
by the members.
13. The parties shall remain present before the Deputy Registrar
on 29 September 2025 at 10.30 a.m. The Deputy Registrar shall
proceed with the matter from that date and shall dispose of the
proceedings within a period of three months from the date of
appearance of the parties.
14. It is clarified that all contentions of both parties on merits
are expressly kept open. The Deputy Registrar shall decide the
matter strictly in accordance with law without being influenced by
any observations made in this judgment.
15. In view of the above directions, all writ petitions stand
disposed of.
(AMIT BORKAR, J.)
