PUNJAB APARTMENT OWNERSHIP ACT, 1995
No. 13-Legislative/95. - The following Act of the Legislature of the State of Punjab received the assent of the President of India on the 26th June, 1995, and is hereby published for general information:-
An Act to provide for the ownership of an individual apartment in a building together with and undivided interest in the common areas and facilities appurtenant to such apartment to make such apartment and interest heritable and transferable, to enforce obligations on promoters and apartment owners, and to provide for matters connected therewith or incidental thereto.
Be it enacted by the Legislature of the State of Punjab in the Forty-sixth Year of the Republic of India as follows :-
(1) This Act may be called the Punjab Apartment Ownership Act, 1995.
(2) It extends to the whole of the State of Punjab.
(3) This Act shall come into force in such areas and on such dates, as the State Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different areas.
The provisions of this Act shall apply to every apartment in any building constructed or converted into apartments by a promoter before or after the commencement of this Act on free hold land or on land held on lease.
In this Act, unless the context otherwise requires:-
(a) "allottee", in relation to an apartment, means the person to whom such apartment has been alloted, sold or otherwise transferred by the promoter;
(b) "apartment", which may be called block, chamber, dwelling unit, flat, lot, premises, suite, tenement, unit or by whatever any other name, means a separate and self-contained part of any property, including one or more rooms or enclosed spaces, located on one or more floors, or any part or parts thereof, in a building, or in a plot of land, used or intended to be used for residence, office, shop, showroom, or godown, or, for carrying on any business, industry, occupation, profession or trade, or for any other type of independent use ancillary to the purposes specified above, and with a direct exit to a public street, road or highway or, to a common area leading to such street, road or highway, and includes any garage or r
(1) Every person, to whom an apartment is allotted, sold or otherwise transferred by the promoter, either before or after the commencement of this Act, shall be entitled, save as otherwise provided in section 7 and subject to the other provisions of this Act, on and from such commencement, or on such allotment, sale or transfer, as the case may be, to the exclusive ownership and possession of the apartment so allotted, sold or otherwise transferred to him.
(2) Every person who becomes entitled to the exclusive ownership and possession of an apartment under sub-section (1) shall be entitled to such percentage of undivided interest in the common areas and facilities as may be specified in the conveyance deed of apartment and such percentage shall be the ratio of the built-up area of the apartment to the total built-up area of all the apartments of the building and in respect of the limited common areas and facilities reserved for the use of certai
(1) Each apartment owner may use the common areas and facilities in accordance with the purposes for which they are intended without hindering or encroaching upon the lawful rights of the other apartment owners.
(2) The necessary work relating to the maintenance, repairs or replacement of the common areas and facilities and the making of any additions or improvements thereto, shall be carried out only in accordance with the provisions of this Act and the bye-laws.
(3) The association shall have the irrevocable right to be exercised by the Board to have access to each apartment from time to time during reasonable hours for the maintenance repairs or replacement of the common areas and facilities therein or accessible therefrom, or for making emergency repairs therein necessary to prevent damage to the common areas and facilities or to any other apartment or apartments.
Subject to the provisions of section 7 an apartment together with the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, shall constitute for all purposes a heritable and transferable immovable property within the meaning of any law for the time being in force and an apartment owner may transfer his apartment together with the percentage of undivided interest in the common areas and facilities appurtenant to such apartment by way of sale-mortgage lease gift, exchange or in any other manner whatsoever, in the same manner, to the same extent and subject to the same rights, privileges, obligations, liabilities, investigations, legal proceedings or remedies, and to penalty forfeiture or punishment, as any other immovable property, or he may make a request of the same under the law applicable to the transfer and succession of immovable property and the promoter shall neither impose any condition on such transfer in the agree
(1) Where an allotment, sale or other transfer of an apartment has been made, whether before or after the commencement of this Act, in pursuance of any promise of payment, or part payment, of the consideration thereof, the allottee shall not become entitled to the ownership of that apartment or to the percentage of undivided interest in the common areas and facilities appurtenant to such apartment until full payment has been made of the consideration along with any amounts in respect of common expenses and payment of Government and municipal taxes incurred by the promoter before the formation of association together with interest if any due thereof and if there is a dispute about the amount payable by the allottee to the promoter the dispute shall be decided by the competent authority but the allottee shall be entitled to possession without waiting for the dispute to be decided.
(2) If after final payment as provided under sub-section (1) has be
An apartment owner shall comply strictly with the provisions of this Act, the rules made thereunder and the bye-laws and with the covenants, conditions and restrictions set forth in the conveyance deed of apartment and failure to comply with any of them shall be a ground for action to recover sums due for damages or for injunctive relief, or both, by the Board on behalf of the association or, in a proper case, by an aggrieved apartment owner, before the competent authority.
Notwithstanding anything contained in any law for the time being in force, a person acquiring an apartment from an apartment owner by gift, exchange, purchase or otherwise, or taking lease of an apartment from an apartment owner, shall,-
(a) in respect of the said apartment, be subject to the provisions of this Act; and
(b) execute within three months and register an instrument, in such form and in such manner, as may be prescribed, giving an undertaking to comply with the covenants, conditions and restrictions, subject to which such apartment is owned by the apartment owner aforesaid, and file certified copy thereof in the office of the competent authority.
If an apartment is acquired by a person, whether by allotment, sale or otherwise, with the consideration thereof paid or provided by another person, the acquirer shall notwithstanding anything contained in any law for the time being in force, be deemed to be real owner of such apartment, and no court shall entertain any claim of the person paying or providing such consideration, for the title to such apartment, on the ground that the acquisition of the apartment was made on behalf of such person or on behalf of some one through whom such person claims.
No apartment owner shall do any work which would be prejudicial to the soundness or safety of the property or reduce the value thereof or impair any easement or hereditament or shall add any material structure or excavate any additional basement or cellar, without first obtaining the consent of all other apartment owners.
Explanation. - Where there is more than one building in the association, reference to the other apartment owners in this section, is only to the other apartment owners in the concerned building.
(1) Where any land is given on lease by a person (hereinafter in this section referred to as the lessor) to another person (hereafter in this section referred to as the lessee, which term shall include a person in whose favour a sub-lease of such land has been granted and any building has been constructed on such lease-hold land by the lessee or by any other person authorised by him or claiming through him) such lessee shall grant in respect of the land as many sub-leases as there are apartments in such building and shall execute a separate conveyance deed of sub-lease in respect of such land in favour of each apartment owner within three months from the date of which possession of any apartment is given to him and execute a document transferring the management of the common areas and facilities to the association within three months of its being formed, and file certified copies of the instruments in the office of the competent authority and in the case of a buildin
(1) An apartment owner may create any encumbrance only against the apartment owned by him and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, in the same manner and to the same extent as may be created in relation to any other separate parcel or property subject to individual ownership:
Provided that where any such encumbrance has arisen or has been created against the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto, such apartment and undivided interest shall not be partitioned or sub-divided.
(2) No labour performed or material furnished with the consent or at the request of an apartment owner or his agent or his contractor or sub- contractor, shall be the basis of a charge or encumbrance under the provisions of the Transfer of Property Act, 1882 (Central Act No. IV of 1882), against the apartment or any other
(1) Whenever any allotment, sale or other transfer of an apartment is made by the promoter to the allottee, the promoter and the allottee shall, as the party in the first part and party in the second part respectively, within three months from the date of such allotment, sale or other transfer, execute a conveyance deed of apartment, containing the following particulars, namely,-
(a) the name, address and other particulars of the allottee;
(b) the description of the land on which the building and the common areas and facilities are located, and whether the land is free-hold or lease- hold, and if lease-hold the period of such lease, and the postal address of the property;
(c) a floor plan of the building showing the layout and location of the apartment, and bearing the verified statement of an architect certifying that it is an accurate copy of the portions of the plans of the building as filed with an
(1) If the promoter, or the apartment owner, as the case may be, fails to execute a conveyance deed of apartment or an endorsement thereon under sub-section (1) or sub-section (4) of section 14 within three months, or does not comply with the provisions of sub-sections (3) and (4) of section 14 within three months of the execution of the conveyance deed of apartment or the endorsement thereon, or with the provisions of sub-section (1) of section 12 within three months of the date on which possession of the apartment is given, or, where the competent authority or the State Government has granted extension of time under the first proviso to sub-section (1) of section 14 within such extended period, the competent authority may, either on a complaint or suo moto, impose a penalty upto a maximum of five thousand rupees or five per cent of the price of the apartment, whichever is greater, for each apartment for which there is a default together with a further minimum penal
(1) Every instrument under section 9, every sub-lease and every document transferring management of common areas and facilities to an association under section 12, every conveyance deed of apartment and every endorsement thereon and every hire- purchase agreement relating to an apartment and a set of floor plans for every building of apartments under section 14, shall be deemed to be documents which are compulsorily registerable under the Registration Act, 1908 (Central Act No. 16 of 1908) and shall be registered with the registering officer accordingly, and the words and expressions used in this section but not defined in this Act, shall have the meanings respectively assigned to them in that Act.
(2) The promoter shall file in the appropriate registration office with the first conveyance deed of apartment in respect of every building, set of all floor plans of the building, showing the layout, location, numbers and dimensions of apartments, an
(1) There shall be an association, with the apartment owners as its members, for the administration of the affairs in relation to the apartments and the property and for management, maintenance and upkeep of the property, the common areas and facilities and common services:
Provided that in respect of an apartment meant for sale but not yet sold, the promoter shall be an associate member of the association and, when such apartment is later on allotted, sold or otherwise transferred, the allottee shall become a member of the association and the promoter shall cease to be associate member of the association in respect of such apartment:
Provided further that the formation of the association shall be without prejudice to the liability of the promoter for breach of any building regulations and the obtaining of completion and occupation certificates.
(2) After obtaining occupation certificate for the buildi
(1) When a tenant co-partnership co-operative housing society (hereinafter referred to as the society) has granted each member the right of exclusive occupation of a particular apartment in a building belonging to it, and no member is without an apartment for occupation, the society, by a resolution passed at its general body meeting, may decide to transfer the ownership right of each apartment to the member already having the right of the exclusive occupation and to convert itself into a service co-operative housing society for the management of the common areas and facilities and for this purpose the society shall execute separate conveyance deeds of apartments in favour of each member and thereafter the society shall be deemed to be the association and its management committee shall be deemed to be the Board for the purposes of this Act.
(2) When a tenant ownership co-operative housing society has granted each member separate parcels of land
An association shall have the following powers and functions, namely:-
(a) the right of access to apartments under section 5;
(b) the responsibility for the administration and management of the property and maintenance and upkeep of the common areas and facilities and common services under section 17;
(c) the power to repair, reconstruction or rebuilding of the property which is damaged or destroyed under section 21;
(d) the power to take action relating to the common areas and facilities or on behalf of two or more apartment owners under section 22;
(e) the responsibility for assessment of the share in the common expenses chargeable to each apartment under section 24;
(f) the liability for any breach of law in respect of the common areas and facilities under section 28;
(g) the power to recover amounts from apartme
(1) The administration of the affairs of the association and the management of the property and the common areas and facilities and services shall be governed by the bye-laws of the association.
(2) The association, at its first meeting, shall make its bye-laws in accordance with the model bye-laws made under this Act by the State Government and no departure from, variation of, addition to or omission from the model bye-laws shall be made except with the prior approval of the competent authority and no such approval shall be given if, in the opinion of the competent authority, such departure, variation, addition or omission shall have the effect of altering the basic structure of the bye-laws.
(3) No bye-laws or amendment of the bye-laws shall be valid unless approved by the competent authority and registered with it.
(4) The model bye-laws made under this section shall provide for the following among
If within sixty days of the date of damage or destruction to all or part of any property, or within such further time as the competent authority may, having regard to the circumstances of the case, allow, the association does not determine to repair, reconstruct or rebuild such property, then,-
(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 owner, shall be the percentage of the undivided interest in the common areas and facilities previously owned by such owner;
(c) an encumbrance affecting an apartment shall be deemed to be transferred in accordance with the existing priority to the percentage of undivided interest of the concerned apartment owner in the property;
(d) the property shall be subject to an action for partition at the suit of any apartme
(1) Without prejudice to the rights of any apartment owner, action may be brought by the Board in its discretion on behalf of two or more of the apartment owners as their respective interests may appear, with respect to any cause of action relating to the common areas and facilities of more than one apartment.
(2) The service of process on two or more apartment owners in any action relating to the common areas and facilities or more than one apartment, may be made on the person designated in the bye-laws to receive service of process.
(1) If an association is not performing its functions, the competent authority may give it suitable directions for discharging its functions under this Act.
(2) If the competent authority is of the opinion that the functioning of the Board is detrimental to the interests of the association or of the apartment owners or against public interest, the competent authority may give the Board a notice to show cause why it should not be superseded.
(3) If the reply of the Board furnished in terms of the provisions of sub- section (2) is not considered satisfactory, the competent authority may supersede the Board and appoint an administrator to perform the functions of the Board and the association for a period not exceeding six months and if the affairs of the association need further time for improvement, the period of the administrator so appointed may be extended from time to time but not more than three years in all.
(1) The common profits of the property shall be distributed among, and the common expenses shall be charged to, the apartment owners according to the percentage of their undivided interest in the common areas and facilities.
(2) Where an apartment owner is not in the occupation of his apartment, the common expenses payable by such apartment owner may be recovered from the person in the occupation of the apartment, whether or not such person holds a tenancy, licence or agreement from the apartment owner or is a purchaser, grantee, legatee or other transferee.
(3) The apartment owner, or the person in occupation, as the case may be, is liable to pay the common expenses, irrespective of whether or not the conveyance deed of apartment or the endorsement thereon has been executed under sub-section (1) or sub-section (4) of section 14 and registered under section 16, or the certified copy of the conveyance deed of apartment has b
No apartment owner may exempt himself from liability for his contribution towards the common expenses, by waiver of the use or enjoyment of any of the common areas and facilities, or by the abandonment of his apartment.
All sums assessed by the association but unpaid for the share of the common expenses chargeable to any apartment shall constitute a charge on such apartment, prior to all other charges, except only,-
(a) the charge, if any, on the apartment for payment of Government and municipal taxes;
(b) all sums unpaid on a first mortgage of the apartment;
(c) any instalment due but remained unpaid under the hire-purchase agreement; and
(d) arrears of ground rent and other charges payable to the lessor.
(1) Upon the sale, bequest or other transfer of an apartment, by a vendor or transferor to the purchaser or the grantee or legatee or other transferee, as the case may be, the latter shall be jointly and severally liable with the former for all unpaid assessments against the former for his share of the common expenses upto the time of the sale, bequest or other transfer, without prejudice to the right of the latter to recover from the former any amount therefor paid by the latter.
(2) Any purchaser, grantee, legatee or transferee referred to in sub-section (1) shall be entitled to a statement from the Board setting forth the amount of unpaid assessment against the vendor or transferor, as the case may be, and such purchaser, grantee, legatee or transferee shall not be liable for any unpaid share of common expenses against such apartment accrued prior to such sale, bequest or other transfer, in excess of the amount set forth in such statement and
(1) The promoter shall be liable to the State Government and to the local authorities for breach of any laws, in respect of the property and the common areas and facilities, till such time an association is formed, and in respect of each apartment, till the date on which possession is given to the apartment owner and thereafter each apartment owner will be liable in respect of the apartment owned by him and the association will be liable in respect of the common areas and facilities:
Provided that the association will not be liable for breaches committed by an apartment owner.
(2) The liabilities of the promoter under sub-sections (4) and (5) of section 24, sub-section (3) of section 30 and sub-section (1) of this section, which occurred before the date of possession of an apartment to an apartment owner or before an association was formed, will continue against him, even after possession of an apartment is given or the ass
(1) It shall be lawful for the association to recover any amount chargeable or recoverable under sections 12, 24, 26, 27 or 30 from an apartment owner or any purchaser, grantee, legatee or other transferee from him or from any person in occupation of the apartment and if the sum assessed by the association is not paid on demand, the association may apply to the Collector for its recovery as an arrear of land revenue.
(2) The Collector, if satisfied that the association has made reasonable efforts to recover such sum but failed, may recover it from the apartment owner or any purchaser, grantee, legatee or other transferee from him or from any person in occupation of the apartment, as an arrear of land revenue.
For the purposes of assessment and levy of taxes on land and buildings under any law for the time being in force neither the buildings nor the property nor the common areas and facilities shall be deemed to be the separate property of the association for the purposes of assessment and levy of such taxes :
Provided that the association shall collect Government and municipal taxes, including the ground rent, from the apartment owners and remit the same to the Government or the local authority, as the case may be.
(1) The Board,-
(a) shall have, if requested so to do by mortgagee having a first mortgage covering an apartment, the authority to; and
(b) shall, if required so to do by the bye-laws or by a majority of the apartment owners, obtain insurance for the property against loss or damage by fire or other hazards under such terms and for such amounts as shall be so requested or required.
(2) The insurance coverage in terms of the provisions of sub-section (1) shall be written on the property in the name of the Board as trustee for each of the apartment owners in the percentage specified in their conveyance deeds of apartment.
(3) The premium payable in respect of every such insurance shall be common expenses.
(4) The provisions of sub-sections (1) to (3) shall be without prejudice to the right of each apartment owner to insure his own apartment for his benefit.
(1) The competent authority shall have the following powers and duties, namely,-
(a) to decide, under section 7, dispute about the amount payable by an allottee to a promoter;
(b) to decide, under section 8, the action for recovery of sums as damages or injunctive relief or both;
(c) to decide, under sub-section (4) of section 12, appeals against notice given by the lessee to apartment owner regarding a breach of the terms and conditions of the sub-lease or regarding the amount of the composition fee demanded in lieu thereof;
(d) to permit, under the first proviso to sub-section (1) of section 14, further time to the promoter to execute conveyance deed of apartment;
(e) to receive under section 9, sub-section (1) of section 12, sub- section (3) of section 14 and sub-section (4) of section 16, the certified copies of instruments of undertaking, deeds of sub-le
(1) The State Government, by notification in the Official Gazette, may appoint an officer or an authority as appellate authority, with the power to decide appeals (hereinafter referred to as the appellate authority), against the orders of the competent authority:
Provided that the State Government may appoint as appellate authority more than one officer or authority and distribute the work among them in the manner it may deem fit.
(2) Any person aggrieved by any order of the competent authority under this Act, may, within a period of the thirty days of the communication of the order to him, prefer an appeal to an appellate authority in such form and manner as may be prescribed.
(3) The appellate authority, after giving an opportunity to be heard to the parties and to the competent authority, may pass such order as it may deem fit, either confirming, modifying or setting aside the order of the competent
The State Government may, suo moto, or, on an application from any party aggrieved by any order within sixty days of the date of the communication to him of such order, call for the record of any case disposed of by the competent authority, or the appellate authority, for the purpose of satisfying itself as to the correctness, legality or propriety of any proceedings or of any order made therein, and pass such order in relation thereto as it may deem fit :
Provided that no order adverse to any person shall be passed without giving him an opportunity to show cause against such proposed order :
Provided further that no revision application shall be entertained when an appeal has been or could have been filed against the order.
No civil court shall have any jurisdiction to entertain or decide any question relating to matters arising under this Act or the rules made thereunder.
(1) The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any contract, undertaking or other instrument, and all apartment owners, tenants, or their employees, or any other person who may in any manner use the property or any part thereof to which this Act applies, shall be subject to the provisions of this Act and the rules and bye-laws made thereunder :
Provided that nothing contained in this sub-section shall affect the right, title or interest acquired by any allottee or other person in common areas and facilities from any promoter before the commencement of this Act.
(2) All agreements, decisions and determinations lawfully made by the association in accordance with the provisions of this Act and the bye-laws, shall be deemed to be binding on all apartment owners.
If a promoter or an association or an apartment owner contravenes any provisions of this Act or the rules, or commits a breach of any bye-laws of the association or of the terms and conditions of the conveyance deed of apartment, or does anything detrimental to the health or safety of the public, the competent authority may issue, either suo moto or on an application from the association or any person affected, a notice to show cause why penalty should not be levied, and if no sufficient cause is shown, levy for each breach or contravention and penalty for each apartment upto a maximum of one per cent of the price of the apartment, or, one thousand rupees, whichever is greater, and a further minimum penalty for each apartment of one hundred rupees for each day during which the breach or contravention continues and if the penalty so levied is not paid, it may be recovered as an arrear of land revenue.
(1) The State Government may, subject to the condition of previous publication by notification in the Official Gazette, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-
(a) the manner in which the percentage of undivided interest of each apartment in a building, parts of which are put to non-residential use, should be determined, under the proviso to sub-section (2) of section 4;
(b) the form and manner in which an instrument referred to in clause (b) of section 9 shall be executed and registered;
(c) the scales of composition fee which may be paid under sub- section (3) of section 12 for the breach of the terms and conditions of any lease or sub-lease;
(d) the form in which the register of deeds of ap
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