Society charge for unpaid flat dues — on the share (Section 154B-14)

A member has stopped paying maintenance for months, or has sold the flat and moved away still owing the society money. The committee asks a plain question: what hold does the society actually have over what that member leaves behind? The answer begins with one provision of the MCS Act, and it is narrower than many committees assume.

What the provision says

Section 154B-14 is titled "Charge of society in respect of share and interest of Member". It reads, in full: "A society shall have a charge upon share and interest of a Member or past Member or deceased Member to the extent of dues payable by such Member to the society."

In plain words, the charge sits on the member's share and interest in the society, not on the flat as a piece of property. It reaches a present member, a past member and a deceased member, and it goes only as far as the dues that member owes the society.

Bye-law 74 of the model bye-laws states a similar charge, but its English text reaches a member present or past only — it does not name a deceased member — and it adds a power of set-off against any sum credited by or payable to the member. Its wording grounds that power in Section 46 of the Act, and Section 154B(2) says Section 46 does not apply to housing societies. So do not rely on that reference. Section 154B-14 is the provision to cite, and Section 154B-14 itself gives no power of set-off. Keep bye-law 74 distinct from Section 74 of the Act, which Section 154B(2) also excludes: the bye-law binds your society, that section of the Act does not.

What it means in practice

Take a member who leaves the society owing a sum of unpaid maintenance. The society's charge follows that member's share and interest, to the extent of that sum and no further. Whether the member counts as a defaulter is a separate test, explained in who counts as a defaulter, and how dues interact with a sale is covered in flat transfer and society dues.

Be clear about what the charge is not. By itself it is not a way to seize or sell anything. It records the society's claim against the member's share and interest; actually recovering the money is a separate step under Section 154B-29.

What your committee should do

1. 1Keep the dues figure certified and up to date in the society's books.
2. 2Record the charge and dues position in the society's own records and in the member's account, rather than announcing it informally.
3. 3Cite Section 154B-14, never Section 46, in every letter or resolution.
4. 4When recovery is actually needed, take the dues to the Registrar under Section 154B-29.
5. 5Take advice before acting against a deceased member's share.