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Recovery under Section 101 of the MCS Act 1960

Overdue outstanding of housing society maintenance is an irritant in every society


despite 21% interest charge for any delay. Collection of overdue society charges is an
extremely important business of housing society. Raising dispute in that behalf is a
dispute referable to the Cooperative Court under Section 91 of the M C S Act 1960 to
the exclusion of any other court.
With a view to make it easy for cooperative societies to recover amounts due by
members exceptionally special provision/procedure has been introduced in the legal
system of the State by inserting Section 101 in the M C S Act 1960.
Making Application for issuing a recovery certificate
a.Issue a notice for payment of dues (including up to 21% interest) to the defaulter, with
a warning therein that on failure to make payment of the same, an application would be
made to the Competent Authority under section 101 of MCS Act, 1960.
b.Pass the resolution to recover the dues in the Managing Committee Meeting.
c.Issue a final notice to the defaulter
e.Apply to the Assistant. Registrar/ Deputy Registrar for the recovery of dues.
f.Pay the prescribed fee (Rs 15 to 1000 max) through a challan payable at the Reserve
Bank of India.
Benefits of completing 101 Procedure
1.The Section 101 procedure is a simpler way of realizing arrears of society dues
without instituting the cumbersome court proceedings a compulsion in business which
require establishing debt due by a debtor to a creditor in the course of business a
profit making activity necessarily.
2.The hallmark of this procedure is the Assistant Registrar/ Deputy Registrar issuing a
Recovery Certificate for the amount due, after making a hearing and a summary inquiry
on the basis of the affidavits filed by the disputant and the respondent. Obtaining this
certificate costs maximum of Rupees one thousand payable as application fees to the
State Government.
3.A certificate granted by the Registrar under sub-section (1) or (2) shall be final and a
conclusive proof of the arrears stated to be due therein, and the same shall be
recoverable according to the law for the time being in force for the recovery of land
revenue.

4.After the recovery certificate is issued the ball is in the Court of the state Government;
i.On receipt of the Recovery Certificate, the Recovery Officer shall prepare demand
notice for being sent to the Sale-Officer for attaching the movable property of the
member concerned.
ii.The Sale Officer, on receipt of recovery paper from the Recovery Officer, shall visit the
flat of the member concerned for preparing an inventory of the movable property and
handover such list to the member concerned and serve the demand notice on the
defaulter member.
iii.If the amount not paid by the member concerned immediately on service of the
demand notice, the Sale Officer will seize the movable property.
iv.Thereafter, the Sale Officer will fix the date, time and place for such auction of the
movable property seized and auction out the same and pay the sale proceeds thereof to
the Society, in satisfaction of the outstanding dues payable by the defaulting member to
the society.
As is evident there is no suit before court of law is involved. Infact for cooperative
disputes cooperative courts have exclusive jurisdiction and even that is obviated by
special procedure of Recovery Certificate and Administration of the State helping
Societies to recover arrears of dues at almost no coast. Question of time barring is
unthinkable.