Housing society demanded Rs 1.42 lakh maintenance dues with 18% interest, Maharashtra Court protects resident from being labelled defaulter; Know why

Dr Nandu from Matunga recently won protection of the Maharashtra State Co-Operative Appellate Court after his housing society tried to label him as a maintenance defaulter for not paying Rs 1.42 lakh in maintenance dues.

To understand why Dr Nandu won the protection, you need to know why he defaulted on the maintenance payments. Dr. Nandu is a well-respected doctor in Matunga, Mumbai and owns a ground floor unit in building no.1 of the housing society. He’s ready to pay the maintenance fees but the housing society hasn’t issued him any bills since 2014.

By April, 2015, the unpaid maintenance dues had ballooned to Rs 1.42 lakh. The housing society told the court that they wanted this amount plus 18% simple interest, claiming Dr Nandu was a persistent defaulter when it came to paying his dues.


On August 16, 2020, during a Managing committee meeting, the housing society decided unanimously to send a notice to Dr Nandu, instructing him to pay his outstanding dues.

Then on January 16, 2021, they followed up with a legal notice to Dr Nandu demanding he settle the maintenance dues.

Also read: Housing societies cannot charge higher maintenance for bigger flats and shops based on area, rules Maharashtra Co-operative Appellate Court

The housing society accused Dr Nandu of making false claims about not receiving bills and notices from them. The society’s advocate argued that according to the provisions of Section 154B1(11) of the MCS Act, Dr Nandu could be labelled a defaulter even before any recovery actions were taken, simply because he was behind on his payments.

Dr Nandu said that he is a doctor specializing in surgical oncology and also teaches medical undergraduate and post graduates, serving as an examiner. He prayed before the court that if the society publishes and displays him as a ‘defaulter,’ it would tarnish his reputation in the eyes of the public at large and cause irreparable loss and damage to his reputation.

Dr Nandu asked the court to issue orders restraining anyone from declaring, publishing and displaying that he is a “defaulter”, unless and until the dispute is finally adjudicated and decided by the court.

On September 11, 2026, Dr Nandu won interim protection of the court from being declared a defaulter. The maintenance dispute would be decided in the trial. This is an interim judgement of the Maharashtra State Co-operative Appellate Court.

Why did Dr Nandu win this interim protection?

Aradhana Bhansaali, Senior Partner at Rajani Associates, said to ET Wealth Online: Dr. Nandu secured interim protection because the Housing Society’s claim that he was a persistent maintenance defaulter was prima facie clouded by evidence that it had not issued him maintenance bills since 2014. Correspondence from the Deputy Registrar also indicated that the Society had refused to accept his cheques or failed to deposit them.

Given these circumstances, Bhansaali says that the Maharashtra State Co-operative Appellate Court found that the Housing Society’s conduct and claim required adjudication and could not be conclusively determined at the interim stage. Publicly calling or labelling Dr. Nandu a "defaulter" pending the dispute could cause irreparable harm to his reputation, particularly given his profession as a surgical oncologist and teacher.

The Maharashtra State Co-operative Appellate Court also noted that the Society would suffer no irreparable loss because it could continue pursuing recovery of the alleged dues if ultimately proved. Hence, the balance of convenience favoured protecting Dr. Nandu’s reputation pending final adjudication.

Maharashtra State Co-operative Appellate Court discussion

Dr. Srishty Neelkanth, honourable member of Maharashtra State Co-operative Appellate Court heard this case.

Housing society denies allegations of no bill but its own evidence shows bills were not given since 2014

The Maharashtra State Co-operative Appellate Court observed that the housing society contends that the demand notices were served upon Dr Nandu but he failed to pay his arrears. However, when the Maharashtra State Co-operative Appellate Court read a letter dated September 14, 2020 written by the Deputy Registrar, Cooperative Society, G/N Ward, Mumbai to the Chairman / Secretary of the Housing Society certain aspects became clear. This letter shows that the society was not providing the bills to Dr Nandu since 2014. This letter also showed that the housing society was not purposely accepting the cheques in lieu of the bills given by Dr Nandu to the Housing Society or were not depositing the cheques given by him.

The court ruled: “Thus, considering the documents produced on record by the opponent (Dr Nandu), prima facie, at this stage, a cloud is raised on the claim and functioning of the Disputant Society, which cannot be affirmatively decided at this stage.”

If at the interim stage, Dr Nandu is branded a defaulter it can cause loss to his reputation

Since the trial is not yet over about the disputed maintenance, the court said that if Dr Nandu is labelled as a ‘defaulter’ at this stage when the dispute is to be adjudicated and when he has made a case for himself, it would definitely cause loss to his reputation and rights as a member.

However, in a rather interesting development, the court was informed that the housing society has filed an application for withdrawal of the dispute before the trial court.

Thus the court granted interim protection to Dr Nandu from being labelled as defaulter.