S.1 Short title, extent and commencement

       (1) This Act may be called the Karnataka Apartment Ownership Act, 1972.
       (2) It extends to the whole of the State of Karnataka.
       (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

S.2 Application of the Act

       This Act applies only to property the sole owner or all of the owners of which submit the same to the provisions of this Act by duly executing and registering a Declaration as hereinafter provided :
       Provided that, no property shall be submitted to the provisions of this Act, unless it is mainly used, or proposed to be used for residential purposes.

S.3 Definitions

       In this Act, unless the context otherwise requires.
       (a) "Apartment" means a part of the property intended for any type of independent use, including one or more rooms or enclosed spaces located on one or more floors (or part or parts thereof) in a building, intended to be used for .residential purposes and with a direct exit to a public street, road or highway or to a common area leading to such street, road, or highway;
       (b) "Apartment owner" means the person or persons owning an apartment and an undivided interest in the common areas and facilities in the percentage specified and established in the Declaration;
       (c) "Apartment number" means the number, letter, or combination thereof designating the apartment in the Declaration;
       (d) "Association of

S.4 Status of apartments

       Each apartment, together with its undivided interest in the common areas and facilities, appurtenant to such apartment, shall for all purposes constitute heritable and transferable immovable property within the meaning of any law for the time being in force in the State; and accordingly, an apartment owner may transfer his apartment and 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, legal proceedings and remedies as any other immovable property, or make a bequest of the same under the laws applicable to the transfer and succession of immovable property.

S.5 Ownership of apartments

       (1) Each apartment owner shall be entitled to the exclusive ownership 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 a Deed of Apartment in relation to his apartment in the manner prescribed for the purpose.

S.6 Common areas and facilities

       (1) Each apartment owner shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the Declaration. Such percentage shall he computed by taking as a basis the value of the apartment in relation to the value of the property; and such percentage shall reflect limited common areas and facilities.
       (2) The percentage of the undivided interest of each apartment owner in the common areas and facilities as expressed in the Declaration shall have a permanent character, and shall not be altered without the consent of all of the apartment owners expressed in an amended Declaration duly executed and registered as provided in this Act. The percentage of the undivided interest in the common areas and facilities shall not be separated from the apartment to which it appertains, and shall be deemed to be conveyed or encumbered with the apartment ev

Legal Commentary on Section 6 of the Karnataka Apartment Ownership Act, 1972

Introduction

Section 6 of the Karnataka Apartment Ownership Act, 1972 (KAOA) is a pivotal provision that delineates the rights and interests of individual apartment owners in the common areas and facilities of a multi-storeyed building. It establishes the basis for undivided interest, use, and management of shared spaces, thereby shaping the legal framework for apartment ownership and communal management in Karnataka.

What does Section 6 Say?

Section 6 primarily provides that:- Each apartment owner shall have an undivided interest in the common areas and facilities, expressed as a percentage in the declaration.- These common areas include spaces such as lobbies, staircases, lifts, terraces, and other shared amenities.- The interest in the common areas remains undivided, and no owner can claim partition or division of such areas.- Owners are entitled to use these facilities in accordance with their designated purpose without hindering others or encroaching upon the rights of fellow owners.

Essential Ingredients

• Undivided Interest: Each owner’s proportional share in common areas as specified in the declaration.
• Common Areas and Facilities: Spaces such as terraces, roofs, lobbies, staircases, etc., which are collectively owned.
• Declaration & Registration: The interest and rights are to be specified in a registered declaration, which forms the basis for ownership.
• Use & Enjoyment: Owners have the right to use common areas in accordance with their designated purpose.
• Prohibition of Partition: The common areas are to remain undivided; no owner can seek partition or division of these spaces.

Scope of Section 6

• Ownership & Rights: Clarifies the nature of ownership in common areas, establishing that such interests are undivided and proportional.
• Management & Use: Guides the use of common facilities, ensuring no owner encroaches or obstructs others’ rights.
• Legal Enforcement: Provides a basis for owners to seek enforcement of their rights and prevent unauthorized interference.
• Relation with Declaration & Bye-laws: The rights are to be exercised as per the registered declaration and bye-laws, which specify the extent of interest and usage rights.
• Applicability: Pertains to all multi-storeyed apartments registered under the Act, including condominiums and societies.

Punishment for Violations

Section 6 itself does not prescribe specific punishments. However:- Violations such as encroachment, obstruction, or unauthorized construction can be challenged through civil suits or proceedings under the Act.- Courts have held that unauthorized structures or interference in common areas can be restrained by injunction.- Non-compliance may attract penalties under other applicable provisions of the Act or related laws.

Legal Comments (with references)

• Ownership Rights - Section 6 affirms that owners have an undivided interest in common areas, which cannot be partitioned or sold separately, ensuring collective ownership. [Bhagirath Co-Operative Housing Society Ltd. VS Nahalchand Laloochand Pvt. Ltd. ]
• Interest Percentage - The percentage of interest in common areas is specified in the declaration, which is binding and must be adhered to by all owners. [Bhagirath Co-Operative Housing Society Ltd. VS Nahalchand Laloochand Pvt. Ltd. ]
• Use of Common Areas - Owners are entitled to use common facilities such as terraces, roofs, and lobbies as per their designated purpose, without hindrance. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Terrace & Roof Rights - The terrace includes "roofs" and "terraces" as common areas, which are to be used collectively, and any construction on such areas must comply with the declaration and bye-laws. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Prohibition of Partition - The Act explicitly prohibits owners from seeking partition of common areas, preserving the collective nature of ownership. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Management & Control - The association of apartment owners has the right to manage and control common areas, including access and maintenance, as per the registered bye-laws. [Bhagirath Co-Operative Housing Society Ltd. VS Nahalchand Laloochand Pvt. Ltd. ]
• Encroachment & Unauthorized Construction - Any unauthorized construction or encroachment on common areas can be restrained through civil proceedings, and such acts violate the rights under Section 6. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Terrace & Common Facilities - The terrace, being part of common facilities, cannot be converted into private space or used for purposes outside the scope of the declaration without consent. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Legal Enforcement - Owners can approach courts for injunctions or specific performance to prevent unlawful interference in common areas. [Bhagirath Co-Operative Housing Society Ltd. VS Nahalchand Laloochand Pvt. Ltd. ]
• Relation with Bye-laws - The rights of owners are governed by the registered declaration and bye-laws, which specify the extent of interest and permissible use. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Impact of Non-Compliance - Violations may lead to civil liabilities, penalties, or orders to demolish unauthorized structures. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Terrace & Roof as Common Areas - The inclusion of "roofs" and "terraces" in common areas ensures collective rights over these spaces, which are integral to the building’s structure and amenities. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Undivided Interest & Maintenance - The undivided interest in common areas entails shared responsibility for maintenance, which is managed by the association. [Bhagirath Co-Operative Housing Society Ltd. VS Nahalchand Laloochand Pvt. Ltd. ]
• Ownership & Transfer - The ownership of individual apartments includes a proportionate interest in common areas, which is heritable and transferable. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Role of Declaration & Registration - A registered declaration is essential for establishing and enforcing owners’ rights in common areas, including interests and use rights. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• No Separate Sale of Common Areas - Common areas cannot be sold or transferred separately from the apartment ownership, maintaining the collective interest. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]
• Legal Precedents - Courts have consistently upheld the collective rights of owners over common areas, including terraces and roofs, as per the provisions of Section 6. [Bhagirath Co-Operative Housing Society Ltd. VS Nahalchand Laloochand Pvt. Ltd. ]
• Protection Against Encroachment - Owners or associations can seek legal remedies to prevent unauthorized encroachment or construction on common facilities. [Abhay Kewadkar VS Residences at Benson Town, Apartment Owners Association]

In summary, Section 6 of the Karnataka Apartment Ownership Act, 1972, provides a robust legal framework ensuring that owners have a defined, undivided interest in shared spaces, with rights to use and manage these areas collectively. It emphasizes the importance of registration, adherence to declaration and bye-laws, and prohibits partition of common areas, thereby safeguarding the collective ownership and facilitating proper management of apartment complexes.

S.7 Compliance with covenants, bye-laws and administrative provisions

       Each apartment owner shall comply strictly with the bye-laws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended from time to time, and with the covenants, conditions and restrictions set forth in the Declaration or in the Deed to his apartment. Failure to comply with any of the same shall be a ground for an action to recover sums due for damages or injunctive relief or both maintainable by the Manager or Board of Managers on behalf of the Association of Apartment Owners or, in a proper case by an aggrieved apartment owner.

S.8 Certain work prohibited

       No apartment owner shall do any work which would jeopardize the soundness or safety of the property, reduce the value thereof or impair any easement or hereditament nor may any apartment owner add any material structure or excavate any additional basement or cellar without in every such case the unanimous consent of all the other apartment owners being first obtained.

S.9 Encumbrances against apartments; removal from encumbrances, effect of part payment

       (1) Subsequent to recording the Declaration as provided in this Act, and while the property remains subject to this Act, no encumbrance of any nature shall thereafter arise or be effective against the property. During such period encumbrances may arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, in the same manner and under the same conditions in every respect as encumbrances may arise or be created upon or against any other separate parcel of property subject to individual ownership:
       Provided that if during the period any encumbrance has arisen or been created against such apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, no apartment and such percentage of undivided interest shall be partitioned or sub-divided

S.10 Common profits and expenses

       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 the undivided interest in the common areas and facilities.

Legal Commentary on Section 10 of the Karnataka Apartment Ownership Act, 1972

Introduction

Section 10 of the Karnataka Apartment Ownership Act, 1972 (KAOA) addresses the distribution of profits and the charging of expenses related to common areas in apartment complexes. It is a crucial provision that ensures equitable sharing of benefits and burdens among apartment owners, facilitating collective management and maintenance of shared spaces.

What does Section 10 Say

Section 10 stipulates that:- The common profits derived from the property shall be distributed among the apartment owners.- The common expenses incurred for the upkeep and management of common areas shall be charged to the apartment owners.- The distribution of profits and expenses shall be proportionate to each owner’s undivided interest in the common areas and facilities.

Essential Ingredients

• Distribution of Profits: Profits from the property’s common areas are to be shared among owners.
• Charging of Expenses: Expenses related to common areas are to be recovered from owners.
• Proportionality: Both profits and expenses are to be apportioned based on each owner’s undivided interest.
• Interest in Common Areas: The basis of apportionment is the undivided interest in shared facilities.

Scope of Section

• Applies to all apartment complexes governed by the Act.
• Covers management of shared amenities, facilities, and areas.
• Ensures transparent and equitable sharing of profits and expenses.
• Facilitates the formation of apartment owners’ associations or cooperative societies for collective management.

Punishment for Section

• The Act does not specify direct penalties or punishments for violations of Section 10.
• Non-compliance may lead to disputes, legal remedies, or actions under related provisions of the Act or other applicable laws.
• Enforcement typically relies on the legal rights of owners to seek redress through courts or cooperative societies’ mechanisms.

Legal Comments

• "Distribution of profits" - Section mandates equitable sharing of profits among owners based on their undivided interest, fostering transparency in collective management. -
• "Common expenses" - Expenses for maintenance and management of shared facilities are to be charged proportionally, ensuring fairness among owners. -
• "Proportional apportionment" - The basis of distribution and charges is the undivided interest, emphasizing the importance of accurate interest valuation. -
• "Management framework" - Section 10 underpins the formation of apartment owners’ associations or cooperative societies to manage profits and expenses collectively. -
• "Legal enforceability" - While no specific penalties are prescribed, violations can be challenged through legal remedies, including suits for recovery or injunctions. -
• "Relation to shared amenities" - Ensures that owners contribute fairly to the upkeep of common facilities, aligning with the Act’s objective of collective ownership. -
• "Integration with other provisions" - Section 10 complements other sections related to ownership rights, encumbrances, and management of apartments. -
• "Role of cooperative societies" - The section encourages registration of cooperative societies to facilitate transparent management of profits and expenses. -
• "Protection of owners’ interests" - The provisions aim to safeguard owners from unfair burden-sharing and ensure proper management of common areas. -
• "Legal framework for shared management" - Section 10 provides a statutory basis for the collective management of apartment complexes, promoting orderly conduct. -
• "Implication for dispute resolution" - Disputes regarding profit sharing or expense charges can be resolved through the mechanisms established under the Act or cooperative laws. -
• "Relevance to building maintenance" - Ensures that maintenance costs are equitably distributed, encouraging owners’ participation in upkeep. -
• "Impact on property valuation" - Proper management of profits and expenses under Section 10 can positively influence the valuation and marketability of apartments. -
• "Legal certainty" - The clear stipulation of distribution and charges provides legal certainty and reduces conflicts among owners. -
• "Limitations" - The section does not specify detailed procedures for distribution or dispute resolution, leaving scope for interpretation and judicial intervention. -
• "Alignment with national laws" - The provisions align with broader principles of collective ownership and management found in Indian property laws. -

Note: The references are based on the provided sources, primarily emphasizing the core aspects of Section 10 as discussed across various legal summaries and commentaries.

S.11 Contents of Declaration

       (1) The Declaration shall contain the following particulars, namely.
       (a) description of the land on which the building and improvements are or are to be located; and whether the land is freehold or leasehold;
       (b) description of the building stating the number of storeys and basements, the number of apartments and the principal materials of which it is or is to be constructed;
       (c) the apartment number of each apartment, and a statement of its location, approximate area, number of rooms, and immediate common area to which it has access, and any other data necessary for its proper identification;
       (d) description of the common areas and facilities;
       (e) description of the limited common areas and facilities,

S.12 Contents of Deeds of Apartments

       (1) Deeds of Apartments shall include the following particulars, namely.
       (a) description of the land as provided in Section 11 of this Act or the post office address of the property, including in either case the book, page and date of executing the Declaration, the date and serial number of its registration, under the Registration Act, 1908 and the date and other reference if any, of its filing with the competent authority ;
       (b) the apartment number of the apartment in the Declaration and any other data necessary for its proper identification;
       (c) statement of the use for which the apartment is intended and restrictions on its use, if any;
       (d) the percentage of undivided interest appurtaining to the apartment in the common areas and facilities; and

S.13 Declarations, Deeds of Apartments and copies of floor plans to be registered

       (1) The Declaration and all amendments thereto and the Deed of Apartment in respect of each apartment and the floor plans of the buildings referred to in sub-section (2) shall be registered under the Registration Act, 1908.
       (2) Simultaneously with the registration of the Declaration there shall be filed along with it a set of the floor plans of the building showing the layout, location, apartment numbers and dimensions of the apartments, stating the name of the building or that it has no name, and bearing the verified statement of an architect certifying that it is an accurate copy of portions of the plans of the building as filed with and approved by the local authority within whose jurisdiction the building is located. If such plans do not include a verified statement by such architect that such plans fully and accurately depict the layout location, apartment number and dimensio

S.14 Removal from provisions of this Act

       (1) All the apartment owners may remove a property from the provisions of this Act by an instrument to that effect duly executed:
       Provided that, the holders of all charges and other encumbrances affecting any of the apartments consent thereto or agree, in either case by instruments duly executed, that their charges or encumbrances be transferred to the percentage of the undivided interest of the apartment owner in the property as hereinafter provided.
       (2) Upon the removal of the property from the provisions of this Act the property shall be deemed to be owned in common by the apartment owners. The undivided interest in the property owned in common which shall apportion to each apartment owner shall be the percentage of undivided interest previously owned by such owner in the common areas and facilities.

S.15 Removal no bar to subsequent re-submission of property to this Act

       The removal provided for in the preceding section shall in no way bar the subsequent re-submission of the property to the provisions of this Act.

S.16 Bye-laws and their contents

       (1) The administration of every property shall be governed by bye-laws, a true copy of which shall be annexed to the Declaration. No modification of or amendment to the bye-law shall be valid, unless set forth in an amendment to the Declaration and such amendment is duly recorded and a copy thereof is duly filed with the competent authority.
       (2) The bye-laws shall provide for the following matters, namely.
       (a) the election from among the apartment owners, of a Board of Managers, the number of persons constituting the same, and that the terms of at least one-third of the members of such Board shall expire annually; the powers and duties of the Board; the compensation, if any, of the members of the Board; the method of removal from office of members of the Board; and whether or not the Board may engage the services of a Secretary, a Manag

Legal Commentary on Section 16 of the Karnataka Apartment Ownership Act, 1972

Introduction

Section 16 of the Karnataka Apartment Ownership Act, 1972 (KAOA) governs the formation, contents, and administration of bye-laws for apartment properties. It forms a crucial part of the statutory framework that ensures proper management and regulation of multi-storeyed apartments, facilitating collective ownership, maintenance, and governance.

What does Section 16 Say

Section 16 mandates that the administration of every apartment property shall be governed by bye-laws. A true copy of these bye-laws must be annexed to the declaration submitted by the owners. The section emphasizes that bye-laws should specify provisions related to management, maintenance, and other operational aspects of the property, and any modification requires adherence to prescribed procedures.

Essential Ingredients

• Mandatory Bye-laws: Every apartment property must be governed by bye-laws.
• Declaration Attachment: A true copy of the bye-laws must be annexed to the declaration submitted under the Act.
• Content of Bye-laws: The bye-laws should contain provisions for management, maintenance, and administration.
• Modification of Bye-laws: Any change or modification must follow the procedures laid down in the Act and bye-laws.
• Legal Status: Bye-laws have statutory backing and are binding on all owners and residents.
• Enforcement: The Act empowers authorities and associations to enforce bye-laws for proper management.

Scope of Section 16

• Management of Property: Ensures that the property’s administration is conducted via bye-laws, providing a legal framework for operational rules.
• Formation of Associations: Facilitates the establishment of associations or societies for collective management.
• Amendments: Provides for the modification of bye-laws with proper procedures.
• Protection of Rights: Secures rights of individual owners and collective interests.
• Legal Validity: Bye-laws, once registered and annexed, have statutory enforceability.
• Relation with Declaration: The bye-laws are integral to the declaration and form the basis of management.

Punishment for Violations

The Act and section 16 do not specify explicit punishments for non-compliance with bye-laws. However:- Legal Consequences: Non-compliance can lead to civil liabilities, injunctions, or penalties under the Act.- Enforcement by Authorities: Competent authorities can direct compliance or take action for violations.- Court Proceedings: Owners or associations can initiate proceedings for breach of bye-laws.

Legal Comments

• Mandatory Nature of Bye-laws - Section 16 underscores that bye-laws are essential for the proper management of apartment properties, and their non-compliance can lead to legal disputes. [Source: "Section 16 in The Karnataka Apartment Ownership Act, 1972"]
• Attachment to Declaration - The requirement to annex a true copy of bye-laws to the declaration ensures transparency and enforceability. [Source: "Section 16 in The Karnataka Apartment Ownership Act, 1972"]
• Content Specification - Bye-laws must specify management, maintenance, and operational procedures, which are crucial for smooth governance. [Source: "Section 16 in The Karnataka Apartment Ownership Act, 1972"]
• Modification Procedures - Changes to bye-laws require adherence to procedural norms, safeguarding owners’ interests. [Source: "Section 16 in The Karnataka Apartment Ownership Act, 1972"]
• Legal Validity of Bye-laws - Once registered, bye-laws have statutory force and are binding on all owners and residents. [Source: "Section 16 in The Karnataka Apartment Ownership Act, 1972"]
• Management and Administration - Bye-laws provide a framework for the formation of associations, appointment of managers, and dispute resolution. [Source: "Association Under The Apartment Ownership Act"]
• Protection of Collective Rights - Proper bye-laws protect collective interests and ensure equitable management. [Source: "Formation of Apartment Owners Association in Karnataka"]
• Amendment and Flexibility - The Act allows for amendments, but only through prescribed procedures, maintaining legal sanctity. [Source: "Section 16 in The Karnataka Apartment Ownership Act, 1972"]
• Role of Authorities - Competent authorities are empowered to oversee compliance and approve bye-law modifications. [Source: "Section 16 in The Karnataka Apartment Ownership Act, 1972"]
• Judicial Enforcement - Courts have upheld the importance of bye-laws in disputes related to management, maintenance, and rights. [Source: "Dispute between Apartment owners and Developer"]
• Protection Against Arbitrary Changes - Any modification must be in accordance with the Act, preventing unilateral or arbitrary amendments. [Source: "Order: Court of the City Civil Judge"]
• Interplay with Other Laws - Bye-laws must conform to broader laws like the Karnataka Co-operative Societies Act, 1959, and RERA, 2016, ensuring consistency. [Source: "Registration of Cooperative Society"]
• Role in Dispute Resolution - Bye-laws serve as the primary document for resolving management disputes among owners and developers. [Source: "Order: Court of the City Civil Judge"]
• Legal Backing for Management - The statutory backing ensures that bye-laws are not merely contractual but enforceable legal instruments. [Source: "Doctrine of Merger"]
• Implication of Non-Compliance - Failure to adhere to bye-law provisions can lead to legal actions, including injunctions or penalties. [Source: "Contempt of Court"]
• Evolution and Amendments - The Act recognizes the need to amend bye-laws to adapt to changing needs, provided procedures are followed. [Source: "Amendments to Bye-laws"]
• Importance in Urban Development - Proper bye-laws facilitate organized urban development and management of complex residential projects. [Source: "Urban Development Laws"]
• Overall Significance - Section 16 ensures orderly management, protection of owners’ rights, and legal enforceability of rules governing apartment complexes. [Source: "Legal Framework for Apartments"]

In conclusion, Section 16 of the Karnataka Apartment Ownership Act, 1972, establishes a comprehensive legal mechanism for the formulation, registration, and enforcement of bye-laws, which are fundamental for the smooth, transparent, and lawful management of apartment properties. Its provisions uphold the rights of individual owners while ensuring collective governance, thereby fostering orderly urban living environments.

S.17 Waiver of use of common areas and facilities Abandonment of apartment

       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 abandonment of his apartment.

S.18 Separate assessment

       Notwithstanding anything to the contrary contained in any law relating to local authorities, each apartment and its percentage of undivided interest in the common areas and facilities appurtenant to such apartment (being an apartment submitted to the provisions of this Act) shall be deemed to be separate property for the purpose of assessment to tax on lands and buildings leviable under such law and shall be assessed and taxed, accordingly; and for this purpose, a local authority shall make all suitable rules to carry out the provisions of this section. Neither the building, the property nor any of the common areas and facilities shall be deemed to be separate property for the purposes of the levy of such tax.

S.19 Charge on property for common expenses

       All sums assessed by the Association of Apartment Owners 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
       (i) charge if any on the apartment for payment of Government and Municipal taxes and
(ii)all sums unpaid on a first mortgage of the apartment

S.20 Joint and several liability of vendor, etc., for unpaid common expenses

       (1) Upon the sale of an apartment, the purchaser of the apartment shall be jointly and severally liabl.e with the vendor for all unpaid assessments against the latter for his share of the common expenses upto the time of the sale without prejudice to the purchaser's or grantee's right to recover from the vendor the amount paid by the purchaser or grantee therefor.
       (2) A purchaser referred to in sub-section (1) shall be entitled to a statement from the Secretary or Board of Managers, setting forth the amount of the unpaid assessment against the vendor and such purchaser or grantee shall not be liable for, nor shall the apartment sold be subject to a charge for any unpaid share of common expenses against such apartment accrued prior to such sale or bequest in excess of the amount therein set forth.

S.21 Insurance

       (1) The Manager or Board of Managers, if required by the Declaration or the bye-laws or by a majority of the apartment owners, or at the request of a mortgagee having a first mortgage covering an apartment, 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 Declaration.
(3) Premiums in respect of insurance referred to in sub-section (1) shall be common expenses and such insurance shall be without prejudice to the right of each apartment owner to insure his own apartment for his benefit.

S.22 Disposition of property; destruction 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 rebuild, 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 appurtain to each apartment owner shall be the percentage of the undivided interest previously owned by such owner in the common areas and facilities;
       (c) any encumbrances affecting any of the apartments shall be deemed to be transferred in accordance with the existing priority to the percentage of the undivided interest of the apartment owner in the property as provided herein;
property shall be subject to an action for partition at th

S.23 Action

       Without limiting the rights of any apartment owner, actions may be brought by the Manager or Board of Managers, in either case in the discretion of the Board of Managers, on behalf of two or more of the apartment owners as their respective interest may appear with respect to any cause of action relating to the common areas and facilities or more than one apartment. 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 Declaration to receive service of process.

S.24 Act to be binding on apartment owners, tenants, etc

       (1) All apartment owners, tenants of such owners, employees of owners and tenants, or any other person that may in any manner use property or any part thereof submitted to the provisions of this Act shall be subject to this Act and to the Declaration and the bye-laws of the Association of Apartment Owners adopted pursuant to the provisions of this Act.
(2) All agreements, decisions and determinations lawfully made by the Association of Apartment Owners in accordance with the voting percentages established under this Act, Declaration or bye-laws, shall be deemed to be binding on all apartment owners.

S.25 Power to make rules

       (1) The State Government may, subject to the condition of previous publication, by notification in the Official Gazette, makes rules for carrying into effect the provisions of this Act.
       (2) Every rule made under this Act shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or successive sessions aforesaid both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall from the date on which the modification or annulment is notified by the State Government in the Official Gazette have effect only in such modified form or be of no effect, as the case may be; so however, that any

S.26 Removal of doubt

       For the removal of doubt, it is hereby declared that the provisions of the Transfer of Property Act, 1882, shall, insofar as they are not inconsistent with the provisions of this Act, apply to every apartment together with its undivided interest in the common areas and facilities appurtenant to such apartment as those provisions apply in relation to any immovable property, and the provisions of this Act shall take effect, notwithstanding anything to the contrary contained in any contract.

S.27 Severability

       If any provision of this Act or any section, sentence, clause, phrase or word, or application thereof in any circumstances is held invalid, the validity of the remainder of this Act and of the application of my such provision, section, sentence, clause, phrase, or word, in any other circumstances shall not be affected thereby.