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2025 Supreme(Kar) 273

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
SURAJ GOVINDARAJ, J.
Akhilesh Anand S/o Anand N Kotian - Appellant 
Vs.
State Of Karnataka - Respondent 
Writ Petition No. 27341 Of 2024 (CS-RES) C/W Writ Petition No. 5479 Of 2023 (CS-RES)
Decided On : 30-06-2025

Advocates:
Advocate Appeared:
For the Appellant :SRI. RAJASHEKAR S., ADVOCATE
For the Respondent:SRI. YOGESH D. NAIK., AGA, SMT. PRADEEP KUMAR P.K., SRI. VENKATESH R BHAGATH., ADVOCATE SRI. GOWTHAMDEVE C ULLAL., ADVOCATE

RERA 2016 governs the registration of associations and takes precedence over KAOA 1972, which requires ownership transfer before forming an association.

Headnote:(A) Karnataka Apartment Ownership Act, 1972 - Real Estate (Regulation and Development) Act, 2016 - Registration of Cooperative Society - The petitioners challenged the registration of a Cooperative Society under the KCSA 1959 and the orders of RERA directing such registration - The court held that a RERA committee can order the formation of a Cooperative Society for apartment owners, as KAOA 1972 requires conveyance of ownership before forming an association - The court emphasized the rights of allottees and the legislative framework under RERA to protect their interests - The formation of an association under KAOA 1972 cannot occur before ownership is transferred, thus reiterating that RERA supersedes KAOA in ongoing projects. (Paras 6, 21, 22, 28)

Judgement Key Points

Certainly. Based on the provided legal document, here are the key legal points:

  1. The applicable law for registration and formation of associations in real estate projects depends on the stage of the project. During the construction phase, especially when the project is incomplete or delayed, the formation of an association is governed by the RERA 2016, which mandates that the promoter shall enable the formation of an association or cooperative society of allottees within a specified period after the majority of units are booked (!) (!) .

  2. An association formed under the KAOA 1972 can only be established after the conveyance of ownership in favor of the allottees, i.e., after the registration of sale deeds. Before such conveyance, the allottees are considered only as allottees or agreement holders, and cannot legally form an association under KAOA 1972 (!) (!) .

  3. The association contemplated under RERA 2016, often called the "Association of Allottees," does not include associations formed under KAOA 1972 or societies registered under the KSRA 1960 or KSCA 1959. The RERA 2016 emphasizes that such associations are to be formed by the allottees post-ownership transfer, and the law recognizes a cooperative society as a valid entity for managing and maintaining the project once formed (!) (!) .

  4. The law clearly states that associations under KAOA 1972 are not voluntary associations but are formed as a statutory requirement, which limits their scope for initiating proceedings under RERA 2016. Only voluntary consumer associations or associations of allottees formed after conveyance are recognized under RERA 2016 for filing complaints or initiating proceedings (!) (!) .

  5. The registration of a cooperative society under the relevant state law (KSCA 1959) cannot be used to carry out maintenance of the entire apartment complex if it is not formed as an association of owners under the applicable law. Such societies are restricted from undertaking maintenance activities related to the entire project unless formed in accordance with the prescribed laws and within the appropriate stage of the project lifecycle (!) (!) .

  6. There exists a clear hierarchy and precedence of laws: RERA 2016, being a central enactment with non-obstante provisions, overrides conflicting state laws such as KAOA 1972, KSRA 1960, and KSCA 1959, especially when these state laws attempt to regulate or restrict the formation of associations or the management of common areas contrary to RERA’s provisions (!) (!) .

  7. The law mandates that the association of allottees should be formed within a specified period after the majority of units are booked, which is different from the provisions under KAOA 1972 that require conveyance before such associations can be legally formed. This timing difference influences who can form associations and when (!) (!) .

  8. The law excludes associations formed under KAOA 1972 from having the capacity to initiate proceedings under RERA 2016 unless ownership has been transferred, i.e., sale deeds are executed, and ownership is registered in favor of the allottees (!) (!) .

  9. Associations under KAOA 1972 are not recognized as voluntary consumer associations and therefore cannot file complaints under the provisions of RERA 2016. Such associations are statutory and formed due to legal obligation, not voluntary association, which limits their standing under RERA (!) (!) .

  10. The law provides that once a cooperative society is duly registered under the relevant state law and formed in accordance with the law, it can undertake maintenance activities and represent the interests of the allottees in the project, including filing proceedings relating to the project’s completion and management (!) .

  11. The law emphasizes the importance of proper timing, registration procedures, and the legal standing of associations and societies, highlighting that associations formed prematurely or without proper ownership transfer may lack the legal capacity to act under RERA or related laws (!) (!) .

  12. The hierarchy of laws and the specific provisions of RERA 2016, including its overriding effect, establish that disputes, registration, and management of real estate projects are primarily governed by RERA, and state laws such as KAOA 1972 and KSRA 1960 are subordinate unless explicitly aligned with RERA’s provisions (!) (!) .

  13. The formation of associations or societies must comply with the relevant laws and be recognized as valid entities to exercise rights such as maintenance, dispute resolution, and complaint filing under RERA. Associations formed before ownership transfer or without proper registration are not recognized for such purposes (!) (!) .

  14. The law also underscores that the rights, obligations, and dispute mechanisms are to be exercised through the appropriate statutory entities, with RERA providing a comprehensive framework that supersedes conflicting state laws, especially concerning the formation and functioning of associations (!) (!) .

In summary, the legal framework prioritizes the formation of associations after ownership transfer, recognizes cooperative societies as valid entities for management, and affirms the supremacy of RERA 2016 over conflicting state laws regarding the regulation, registration, and management of real estate projects and associations of allottees.


Table of Content
1. relief sought by petitioners in w.p. no. 27341/2024. (Para 1 , 3 , 4)
2. details regarding the residential project commune 1. (Para 5 , 6 , 7 , 8)
3. legal basis and concerns related to the formation of associations. (Para 9 , 10 , 11)
4. arguments regarding the legality and formation of societies. (Para 12 , 14)
5. arguments raised against the rera and cooperative registration. (Para 18 , 19 , 20)
6. court's observations on associations and cooperative societies. (Para 21 , 22 , 23 , 24 , 25)
7. final conclusions and orders given by the court. (Para 28 , 29)

ORDER :

SURAJ GOVINDARAJ, J.

1. The Petitioners in W.P.No.27341/2024 are before this Court seeking for the following reliefs:

a. Quash Registration certificate dated 20.11.2020 DRB3/SOR/378/2020-2021 issued by third Respondent District Registrar for Societies, Zone-3, Bengaluru Urban District at Annexure-B

(Deleted vide order dated 10.12.2024)

b. Quash order dated 05.07.2022 in Complaint No. (KRERA) 7613/2020 at Annexure-C and Order dated 03.01.2023 & 17.05.2024 in CMP 221116/0010348 clubbed with CMP 210223/0007613 at Annexure-U passed by Third Respondent Karnataka Real Estate Regulatory Authority (RERA);

(Deleted vide order dated 10.12.2024)

c. Quash Registration Certificate bearing No. AA.HA. HAAA.RE-50/REGISTRATION/06/54965/2023-24 dated 11.08.2023 issued by Second Respondent Registrar for Co-operative Societies, Zone-3, Bengaluru Urban District at Annexure-J.

d. To quash notice dated 15.07.2024 bearing No. DRB- 3/DIS/48/2024-25 at Annexure-W and order dated 31.08.2024 bearing No. DRB-3/DIS/48/2024-25 passed by Third Respondent District Registrar for Co- operative Societies at Annexure-Z by writ of Certiorari or by any other writ.

e. Issue necessary directions to second Respondent Registrar of Co-operative Societies and Third Respondent District Registrar for Societies, Zone-3, Bengaluru Urban District, to desist from intervening with the affairs of petitioner Association pertaining to task of management of Common areas and common amenities in Commune 1 Project.

f. Issue necessary directions to Sixth Respondent Developer to act on Representation dated 29.04.2024 at Annexure-H by taking all such necessary steps towards formation and registration of an Association of Apartment owners under the provisions of Karnataka Ownership Act, 1972 for the purpose of accomplishing the maintenance of common areas and common amenities in Commune- 1 Project,

g. Issue necessary directions to Seventh respondent Sub-Registrar, Attibele, Bengaluru to accept and register Deed of Declaration and Bye laws and Rules and Regulations pertaining to registration of Association for Flat owners at Commune 1 Project at Annexure-AL to writ petition, or to register any other Deed of Declaration of Bye-laws duly approved by all the Apartment owners at Commune 1 Project.

h. Issue Directions to all the Respondents herein to extend support and co-operatioin towards formation and registration of an Association of Apartment owners under the provisions of Karnataka Apartment Ownership Act, 1972 for the purpose of undertaking the maintenance of common areas and common amenities in Commune-1 Project,

i. To pass such other order or writ as this Hon’ble Court deems fit to grant under the facts and circumstances of the case.

j. For costs of this Writ petition.

2. The Petitioners in W.P.No.5479/2023 are before this Court seeking for the following reliefs:

a. Direct the R2, R3 and R4 to expeiditously register the co-operative Society, “Commune I Apartment owners Co-operative Society Ltd.,”

b. Direct R7 to ensure that the order dated 24.03.2022 of the R6 at Annexure-C are complied by all the jurisdictional sub-registrars.

c. Direct the R8, R13 and other sub-registrar having jurisdiction to refrain from registering the sale deeds when presented by R9 and R12 in violation of the orders of R6 at Annexure-C.

d. Direct R6 to order take over of the project by the complainant in CMP/210223/0007613 being a welfare association regis

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