Defaulter Notice
A Defaulter Notice is a formal written communication from the managing committee to a member who has not paid maintenance dues for a specified period, informing them of the outstanding amount and the consequences of continued non-payment.
What is Defaulter Notice?
Before initiating legal recovery proceedings, the society must serve a Defaulter Notice on the member. This notice states the total outstanding amount, the period it covers, and a deadline by which payment must be made to avoid further action.
The notice must reference the member's ledger account and attach or reference the relevant bills. A demand notice under Section 101 of the MCS Act has specific format requirements.
Why it matters
A Defaulter Notice is a prerequisite for Section 101 recovery. Without a properly served notice, the Registrar will not admit the recovery application.
Sending timely notices also prompts many members to pay before proceedings are initiated — saving the society the time and cost of formal recovery.
Legal & regulatory context
Section 101 of the MCS Act enables co-operative societies to recover dues as arrears of land revenue — a powerful enforcement mechanism. The process requires: (a) Defaulter Notice, (b) application to Registrar, (c) Registrar's recovery certificate, (d) execution by Collector.
The notice must be served by registered post with acknowledgement due (RPAD). Personal service is also valid if witnessed. Incorrect service renders the notice invalid.
How SocietyBee handles it
SocietyBee generates Defaulter Notice letters pre-populated with the member's name, flat number, outstanding bill details, and total amount due. The treasurer can print and send these notices. The platform tracks notice dispatch dates for each defaulter.
Try SocietyBee free →Frequently asked questions
How many months of arrears before issuing a Defaulter Notice?
Most societies issue notices after 2–3 months of arrears. Bye-laws may specify a minimum period. For Section 101 proceedings, there is no statutory minimum arrear period.
Can interest be included in the Defaulter Notice amount?
Yes, if interest has been charged by Supplementary Bill. The notice should show principal arrears and interest separately.