Apartment Act 1972: Relevant Extracts &

Conclusion
Chandra Nath
September 18, 2019

Contents 1 UDS
1 UDS 1 Status of apartments.- Each apart-
ment, together with its undivided in-
2 Ownership of apartments 2 terest in the common areas and facil-
ities appurtenant to such apartment,
3 Common areas and facili- shall for all purposes constitute
ties 2
1. heritable and
4 Common Expenses 3
2. transferable immovable prop-
5 Insurance 3 erty

6 Disposition of property; within the meaning of any law for the

destruction or damage 3 time being in force in the State: and
accordingly, an apartment owner
7 Act to be Binding 4 may transfer his apartment and the
percentage of undivided interest in
8 Action 4 the common areas and facilities ap-
purtenant to such apartment by way
9 Legal Framework 4 of

10 Documents Required 4 1. sale,

11 Karnataka Registration 2. mortgage,

of society Act 1960 5
12 Property Interest of the
Owners 7
“Freedom is an expensive
gift always worth fight-
ing for. Even if it costs
us!”— Marck E. Estemil
3. lease,
4. gift,
5. exchange or in any other man-
ner whatsoever
in the same manner to the same ex-
tent and subject to the same

1
 1. rights, privileges. obliga-
tions, liabilities, legal proceed-
ings and remedies as any other
immovable property
2. or make a bequest of the same
under the laws applicable to
the transfer and
3. succession of immovable prop-
erty.
2 Ownership of
apartments
1. Each apartment owner shall be
entitled to the exclusive own-
ership and possession of his
apartment.
2. Each apartment owner shall
execute a Declaration that he
submits his apartment to the
provisions of this Act and
3. a Deed of Apartment in rela-
tion to his apartment in the
manner prescribed for the pur-
pose.
3 Common areas and
facilities
1. Each apartment owner shall be
entitled to an undivided inter-
est in the common areas and
facilities in the percentage ex-
pressed in the Declaration.
2. Such percentage shall be com-
puted by taking as a basis the
value of the apartment in rela-
tion to the value of the prop-
erty and such percentage shall
reflect limited common areas
and facilities.
2
3. The percentage of the undi-
vided interest of each apart-
ment owner in the common ar-
eas and facilities as expressed
in the Declaration shall have
permanent character, and shall
not be altered without the
consent of all of the apart-
ment owners expressed in an
amended Declaration duly ex-
ecuted and registered as pro-
vided in this Act.
4. The percentage of the undi-
vided interest in the common
areas and facilities shall not be
separated from the apartment
to which it appertains, and
5. shall be deemed to be conveyed
or encumbered with the apart-
ment even though such inter-
est is not expressly mentioned
in the conveyance or other in-
strument.
6. The common areas and facili-
ties shall remain undivided and
7. no apartment owner or any
other person shall bring any
action for partition or divi-
sion of any part thereof, unless
the property has been removed
from the provisions of this Act
as provided in sections 14 and
22. Any covenant to the con-
trary shall be null and void.
8. Each apartment owner may
use the common areas and fa-
cilities in accordance with the
purpose for which they are in-
tended without hindering or
encroaching upon the lawful
rights of the other apartment
owners.
 9. The necessary work of mainte-
nance, repair and replacement
of the common areas and facil-
ities and
10. the making of any additions or
improvements thereto shall be
carried out only as provided
herein and in the bye-laws.
11. The Association of Apartment
Owners shall have the irrevo-
cable right, to be exercised
by the Manager or Board of
Managers, to have access to
each apartment form time to
time during reasonable hours
as may be necessary for the
maintenance,
12. repair and replacement of any
of the common areas and facili-
ties therein or accessible there-
from, or
13. for making emergency repairs
therein necessary to prevent
damage to the common area
and facilities or to another
apartment or apartments.
4 Common Expenses
19. Charge on property for com-
mon expenses.- All sums assessed
by the Association of Apartment
owners but unpaid for the share of
common expenses chargeable to any
apartment shall constitute
a charge on such apartment prior
to all other charges, except only
(i) charge if any on the apartment
for payment of Government and Mu-
nicipal taxes and
(ii) all sums unpaid on a first
mortgage of the apartment.
3
5 Insurance
(1) The Manager or Board of Man-
agers, if required by the Declara-
tion or the bye-laws or by a major-
ity of the apartment owners, or at
the request of a mortgagee having
a first mortgage covering an apart-
ment, shall have the authority to,
and shall obtain insurance for the
property against loss or damage by
fire and such other hazards under
such terms and for such amounts as
shall be required, or requested. (2)
Insurance referred to in sub-section
(1) shall be written in the name
of the Manager or of the Board of
Managers of the Association of the
Apartment Owners as trustee for
each of the apartment owners in the
percentages established in the Dec-
laration. (3) Premiums in respect of
insurance referred to in sub-section
(1) shall be common expenses and
such insurance shall be without prej-
udice to the right of each apartment
owner to insure his own apartment
for his benefit.
6 Disposition of
property; destruc-
tion or damage
If within sixty days of the date of
damage or destruction to all or part
of the property, it is not determined
by the Association of Apartment
Owners to repair, reconstruct or re-
build, then and in that event,-
(a) the property shall be deemed
to be owned in common by the
apartment owners;
(b) the undivided interest in the
property owned in common which
shall appertain to each apartment (2) All agreements, decisions and
owner shall be the percentage of the determinations law-fully made by
undivided interest previously owned the Association of Apartment Own-
by such owner in the common areas ers in accordance with the voting
and facilities percentages established under this
(c) any encumbrances affecting Act, Declaration or bye-laws, shall
any of the apartments shall be be deemed to be binding on all
deemed to be transferred in accor- apartment owners.
dance with the existing priority to
the percentage of the undivided in-
terest of the apartment owner in the 8 Action
property as provided herein:
Without limiting the rights of any
(d) the property shall be subject
apartment owner, actions may be
to an action for partition at the suit
brought by the Manager or Board of
of any apartment owner, in which
Managers, in either case in the dis-
event the net proceeds of sale to-
cretion of the Board of Managers, on
gether with the net proceeds of the
behalf of two or more of the apart-
insurance on the property, if any,
ment owners as their respective in-
shall be considered as one fund and
terest may appear with respect to
shall be divided among all the apart-
any cause of action relating to the
ment owners in percentage equal to
common areas and facilities or more
the percentage of undivided interest
than one apartment. Service of pro-
owned by each owner in the property
cess on two or more apartment own-
after first paying out all the respec-
ers in any action relating to the com-
tive shares of the apartment owners
mon areas and facilities or more than
to the extent sufficient for the pur-
one apartment may be made on the
pose and all charges on the undi-
person designated in the Declaration
vided interest in the property owned
to receive service of process.
by each apartment owner.

9 Legal Framework
7 Act to be Binding
1. Builder & Association
Act to be binding on apartment own-
ers, tenants etc.- 2. association & workmen
(1) All apartment owners, ten-
3. Association & owners
ants of such owners, employees of
owners and tenants, or any other 4. Owners, their heirs and buyers
person that may in any manner use
property or any part thereof sub-
mitted to the provisions of this Act 10 Documents Re-
shall be subject to this Act and to
the Declaration and the bye-laws of
quired
the Association of Apartment Own- 1. Deed of declaration
ers adopted pursuant to the provi-
sions of this Act. 2. Occupancy Certificate

4
 3. NOC – Airports Authority of
India
4. NOC- Ministry of Environ-
ment & Forests Karnataka
State Pollution Control Board
– Consent
5. NOC from BDA for Construc-
tion
6. NOC – BSNLC – BESCOM
7. RR.No. Of all the Flats
8. Title Deed
9. Lift Approvals from Deputy
Chief Electrical Inspec-
tor BWSSB Sanction let-
ter/Payment Receipt copy
10. List of Club House Movable
Assets
11. Hand over of DG, Transformer
& Fire Pump Details Sump &
Tank Capacity Details
11 Karnataka Regis-
tration of society
Act 1960
1. Karnataka Registration of so-
ciety Act 1 1960 does not cover
apartments & Maintenance
2. Section 10 of the 2 1972, states:
“Promoter to take steps for
formation of Cooperative soci-
ety or company” the promoter
is required to register coopera-
tive society or company. Soci-
ety is illegal.
1 https://www.societyconnect.in/pdf/karnataka2.pdf
2 https://credai.org/assets/upload/state/resources/karnataka-ownership-flats-act-1972.
pdf
3 https://tinyurl.com/y58437bj
4 https://indiankanoon.org/doc/1356067/
5
3. Government of Karnataka
(Department of Co-operation)
Registrar of Co-operative
Societies, Karnataka State,
Bangalore- 560052. Ref no:
RSR / Cooperative / 144 /
2018-19 Date: 30-11-2018 3
4. HC, Karnataka ruling also on
the subject4
• ”3. In fact, I have of-
ten observed and even is-
sued notice to the Regis-
trar of Societies in Kar-
nataka. It is strange that
under the Karnataka So-
cieties Registration -Act,
1960 (hereinafter referred
to as the Act) registra-
tion is permitted to these
Associations who neither
have as their objects pro-
motion of culture, sports
nor education but their
own trade or professional
interests. On that ground
it is open to this Court
to reject the locus standi
of the petitioner to pros-
ecute this petition. Sec.
3 of that Act expressly
provides the purpose for
which the Association of
person may have regis-
tered under that Act. If
any Association carries
on activities outside those
purposes enumerated in
Sec. 3 of the Act, it will
not be entitled to the reg-
istration under that Act.”
5. There are SC ruling on the the satisfaction of all its
subject of inability of Society debts and liabilities, any
(Regd or unregistered) . property whatsoever, the
same shall not be paid
• Illachi Devi (D) By Lrs.
to or distributed among
And Ors vs Jain So-
the members of the said
ciety, Protection Of ...
society or any of them,
on 26 September, 2003 :
but shall be given to some
”This appeal is directed
other society, to be de-
against the judgment and
termined by the votes of
order dated 17th August
not less than three-fifths
2001 of the High Court
of the members present
of Delhi, which raises
personally or where prox-
a question, whether a
ies are allowed, by proxy
Society registered under
at the time of the 13
the Societies Registration
dissolution, or in default
Act, 1860 is entitled to
thereof, by the principal
obtain Letter of Admin-
civil court of original ju-
istration under Section
risdiction of the district.
236 of the Indian Succes-
(2) Notwithstanding any-
sion Act (in short ”the
thing contained in sub-
Act”)?.....A society is an
section (1), it shall be
association of persons. It
lawful for the members
may or may not be regis-
of any society dissolved,
tered under the Societies
to determine by a ma-
Registration Act. Since
jority of the votes of the
the aforementioned pro-
members present person-
visions were inserted in
ally or where proxies are
Sections 223 and 236 of
allowed, by proxy, at the
the Act, the Courts have
time of dissolution of such
held that no Administra-
society that any property
tion can be granted in fa-
whatsoever remaining af-
vor of a society, although
ter the satisfaction of all
a Society could be a ben-
its debts and liabilities
eficiary under a Will exe-
shall be given to the State
cuted by testator.” 5
Government to be uti-
6. Society property is irretriev- lized for any of the pur-
ably lost to the owners poses referred to in sec-
tion 3.
• 3. Upon dissolution, no
member to receive profit.-
(1) If upon the dissolu-
tion of any society reg-
istered under this Act,
there shall remain, after
5 https://indiankanoon.org/doc/854277/

6
12 Property Interest
of the Owners
Society Act 1960 is totally NOT in
the property interests of the own-
ers and unacceptable to the owners
as the property including the UDS
and common areas and facilities are
property owned by the owners and
belong to the owners and can not
be forced out of the owners hands
by statutory provisions. In view
of all the above, Registration un-
der 1960 Act is totally illegal and
the protection provided to the own-
ers by the 1972 Act is NOT pro-
vided to the owners and hence com-
pliance demands that the Society be
re-registered under the proper Act.