A Step-by-Step Guide to Recovering Maintenance Dues Legally Under Section 101 / 154B(29)
- Finio
- Jun 15
- 2 min read
Has your society been facing persistent payment delays from members despite reminders and follow-ups? If so, you're not alone. The good news: The law is on your side. Thanks to Section 101 of the Maharashtra Cooperative Societies Act, societies now have a clear and enforceable path to recover pending dues legally. This blog walks you through the exact steps involved.
Step 1: Send Legal Notices
Begin by sending a formal letter to the defaulter outlining the pending dues along with applicable interest (which can go up to 21%). Clearly mention that failure to pay will lead to legal proceedings under Section 101. Usually three legal notices with set intervals between them need to be sent.
Step 2: Resolution in General Body Meeting
If the dues remain unpaid, convene a general body meeting and pass a resolution authorizing the society to take legal action against defaulters for recovery. Follow this up with a final warning letter to the defaulting members.
Step 3: File with the Deputy Registrar's Office under Section 101
Prepare and submit your case file petition to the Registrar of Co-operative Societies under Section 101, along with a nominal inquiry fee and court fee depending on the amount to be recovered (ranging from ₹15 to ₹1000).
Claim Amount | Inquiry Fee | Court Fee |
Up to ₹1000 | 5.5% | ₹15 |
₹1001–₹2000 | 4.5% | ₹20 |
₹2001–₹5000 | 3.5% | ₹20 |
₹5001+ | 3.0% (up to ₹1000) | ₹25 |
Step 4: Registrar Review & Recovery Certificate
The Registrar will investigate the case and will conduct periodic hearings based on the pieces of evidence and challenges provided by each party. Once satisfied, they will issue a Recovery Certificate in favour of the society. In 99% of the cases, legal and recovery costs borne by the society are also to be recovered from the defaulter itself.
Step 5: Execution by Recovery Officer
This certificate is then put forward to the Special Recovery Officer (appointed by the Federation) to take charge of the recovery.
Step 6: Inventory and Demand Notice
The SRO visits the defaulter’s premises, lists movable property, and serves a final demand notice—giving the member a last chance to pay.
Step 7: Seizure & Auction
If payment is still not made, the officer (with support from the police if required) seizes movable property and initiates an auction. In extreme cases, if dues are still unpaid, even the member’s flat may be auctioned to recover the balance.
Why Professional Support Matters
While this process is legally sound, it's also time-consuming and document-heavy. Most societies lack the legal bandwidth as well the time commitment from office bearers to navigate each step efficiently. That’s where Finio™ helps:
We prepare and file all paperwork
Interface with Registrars and Recovery Officers
Manage member communications professionally
Help societies stay compliant and within the law at every stage
So if you're a society dealing with long-standing defaulters, don’t let the problem linger. The above process is your legal ally—and Finio is your execution partner. We take the complexity out of recovery so your society can get back on track—quickly, legally, and respectfully.
Explore our recovery services or book a free consultation here.
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