Wednesday, June 9, 2021

THE WEST BENGAL APARTMENT OWNERSHIP ACT, 1972

 

THE WEST BENGAL APARTMENT OWNERSHIP ACT, 1972.

An Act to provide for the ownership of an individual apartment and to make such apartment heritable and transferable property.

Whereas it is expedient to provide for the ownership of an individual apartment and to make such apartment heritable and transferable property;

It is hereby enacted in the Twenty-third Year of the Republic of India, by the Legislature of West Bengal, as follows:—

1. Short title, extent and commencement:

(1) This Act may be called the West Bengal Apartment Ownership Act, 1972.

(2) It extends to the whole of West Bengal.

(3) This section shall come into force at once; and. the remaining provisions of 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.

2. Application of the Act:

This Act shall apply to every building which is used, or is proposed to be used, mainly for residential purposes:

Provided that the sole owner or all the owners of every such building shall submit the same to the provisions of this Act by duly executing and registering a Declaration setting out the particulars referred to in section 10:

Provided further that the State Government may exempt by any general or special order any such owner from submitting such building to the provisions of this Act.

3. Definitions:

In this Act, unless the context otherwise requires,—

(a) “apartment” means part of a property having a direct exit to a road, street or highway or to a common area leading to such road, street or highway which together with in undivided interest in the common areas and Facilities forms an independent residential unit, and includes a flat.

Explanation.—“Flat” shall mean a separate residential unit, whether self-contained or not, used or intended to be used for any of the purposes referred to in sub-clauses (a) to (i) of clause (2) of section 390 of the Calcutta Municipal West Ben. Corporation Act, 1980;

(b) “Association of Apartment Owners” means the association competent to contract in its own name and) formed in accordance with the provisions made in the bye-laws;

(c) “building” means a building containing two or more apartments or more than one building, each being a complete unit or each containing two or more apartments comprised in the same property;

(d) “common areas and facilities” includes—

(1) the land on which the building is located and all casements, rights and appurtenances belonging to the land and the building,

(2) the Foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stair-ways, fire-escapes and entrances and exits of the building,

(3) the basements, cellars, yards, gardens, parking areas shopping centres, schools, garages, building or apartment vacant or occupied by a tenant or any other person, not being an owner, and transferred or proposed to be transferred to the Association of Apartment Owners and storage spaces,

(4) the premises for the lodging of janitors or persons employed for the management or the property,

(5) installations of common services, such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, sewerage, etc.,

(6) the elevators, tanks, pumps, motors, compressors, pipes and ducts and in general all apparatus and installations existing for common use,

(7) such other common facilities, as may be specially provided for in the Declaration,

(8) all other parts of the property necessary or convenient to its existence, maintenance and safely, or normally in common use;

(e) “common expenses” means expenses of administration, maintenance, repair or replacement of the common areas and facilities and all other sums assessed against the apartment owners by the Association of Apartment Owners;

(f) “common profits” means the balance of all income, rents, profils and revenues from the common areas and facilities remaining after the deduction of the common expenses;

(g) “Competent Authority” means any person, or any officer not below the rank of a Deputy Magistrate, authorised by the State Government by notification in the Official Gazette to perform the functions of the Competent Authority under this Act for such area as may be specified in the notification, and different persons or officers may be authorised for different functions or for different areas;

(h) “Declaration” means the instrument by which the property is submitted to the provisions of this Act, as hereinafter provided;

(i) “limited common areas and facilities” means those common areas and facilities which may be designated in the Declaration as reserved for use of certain apartment or apartments to the exclusion of the other apartments;

(ia) “owner”, in relation to a properly or part (hereof or an apartment, includes any person owning the same or deemed to be owning the same, promoter or, for the purposes of this Act, excepting the provisions of sub-section (1) of section 4 thereof, lessee of such property or part thereof or of such apartment, where the lease is for a period of thirty years or more:

Provided that where a person has executed and registered an agreement for purchase or for taking lease for a period of thirty years or more of a building or an apartment or has paid the consideration or part thereof, he is deemed to be owning such building or apartment even though the document for purchase or lease has not been executed and registered;

(j) “prescribed” means prescribed by rules made under this Act;

(k) “property” comprises the land, the building and the common areas and facilities;

(l) “promoter” means a person who constructs or causes to be constructed a building on a plot of land for the purpose of transfer of such building by sale, gift or otherwise to any other person or to a company, co-operative society or association of persons, and includes—

(i) his assignee, if any,

(ii) the person who constructs, and the person who transfers by sale, gift or otherwise, the building, if the two are different persons,

(iii) the Government,

(iv) an undertaking of the Government, or

(v) any board or corporation established by or under any law for the time being in force.

3A. Member of a Co-operative Society, where such society is the owner of a property, to be the owner of the apartment of such property in his possession for a limited purposes:

Where a Co-operative Society is the owner in respect of a properly or part thereof, a member of such society in legal occupation of an apartment comprised in such property or such part shall be deemed to be the owner of such apartment within the meaning of the provisions of this Act excepting those of sub-section (1) of section 4 thereof.

4. An apartment to be transferable and heritable property:

(1) Each apartment owner shall be entitled to the exclusive ownership and possession of his apartment.

(2) An apartment, together with its undivided interest in the common areas and facilities, shall constitute heritable and transferable immovable property within the meaning of any law for the lime being in force:

Provided that no apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment shall be partitioned or subdivided for any purpose whatsoever.

(3) Notwithstanding anything contained in the Transfer of Property Act, 1882, or in any other law for the time being in force, but subject lo the provisions of section 11 of this Act, any person,-—

(a) acquiring by purchase or by inheritance, or

(b) taking lease of, for a period of thirty years or more, an apartment comprised in a property submitted to the provisions of this Act, shall,—

(i) in respect of the said apartment, be subject to the provisions of this Act, and

(ii) execute and register an instrument in such form, in such manner and within such period as may be prescribed, undertaking to comply strictly with the bye-laws and with the covenants, conditions and restrictions set forth in the Declaration.

4A. Benamdar of an apartment to be deemed to be the real owner thereof:

Where an apartment is transferred to one person for a consideration paid or provided by another person for his own benefit, the transferee shall, notwithstanding anything in the Transfer of Property Act, 1882, or in the Indian Trusts Act, 1882, or in any other law for the time being in force, be deemed to be the real owner of such apartment, and no Court shall entertain any claim of the person, paying or providing the consideration, for title in such apartment on the ground that he did not intend to pay or provide such consideration for the benefit of Che transferee and that the transferee is his benamdar, or on any other ground.

5. 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.

(2) The percentage of the undivided interest of each apartment owner in the common areas and facilities as expressed in the Declaration shall not be altered without the written consent of all the apartment owners.

Addition or alteration, if any, is to be expressed subsequently 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 even though such interest is not expressly mentioned in the conveyance or other instrument.

(3) The common areas and facilities shall remain undivided, and no apartment owner or other person shall bring any action for partition or division of any part thereof, unless the property has been withdrawn from the provisions of this Act, ‘

(4) Each apartment owner may use the common areas and facilities for the purpose for which they are intended without hindering or encroaching upon the lawful rights of the other apartment owners.

(5) The work relating to the maintenance, repair and replacement of the common areas and facilities and the making of any additions or improvements thereto shall be carried out in accordance with the provisions of this Act and the bye-laws made thereunder.

(6) The Association of Apartment Owners shall have right, to be exercised by the Manager or the Board of Managers on behalf of the Association, with such assistance as the Manager or the Board of Managers, as the case may be, considers necessary, to have access to each apartment from time to time during reasonable hours, for the maintenance, repair and replacement of any of the common areas and facilities therein or accessible therefrom, or for making emergency repairs therein to prevent any damage to the common area and facilities or Lo other apartments.

(7) The Association of Apartment Owners shall, subject to any covenants, conditions or restrictions if any agreement, have the right, to be exercised by the Manager or the Board of Managers on behalf of the Association with such assistance as the Manager or the Board of Managers, as the case may be, considers necessary, to transfer ownership, by sale or by lease for thirty years or more, of any buildings of apartment owned or deemed to be owned as common areas and facilities by the Association and occupied by any tenant or any other person not being an owner:

Provided that no such transfer shall be made by the Association to any person, other than an existing tenant or an occupier, not being an owner, without the consent of all the apartment owners.

6. Compliance with bye-laws, covenants, etc:

Each apartment owner shall comply strictly with the bye-laws and with the covenants, conditions and restrictions set forth in the Declaration. Failure to comply with any of the same shall be a ground for an action to recover damages or for other relief or reliefs at the instance of the Manager or the Board of Managers on behalf of the Association of Apartment Owners or, in a proper case, by an aggrieved apartment owner.

7. Certain work prohibited:

No apartment owner shall do any work which would be prejudicial to the soundness or safety of the property or would 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, in writing, of all other apartment owners.

8. Encumbrances against apartments:

During the period the property remains subject to this Act, no encumbrance of any nature shall be created against the property. During such period an encumbrance may, however, 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 as in relation to any other separate parcel of property subject to individual ownership.

9. 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.

10. Contents of Declaration:

(1) The Declaration referred to in section 2 shall be submitted in such form and in such manner as may be prescribed and shall contain the following particulars, namely:—

(a) description of the property;

(b) nature of interest of the owner or owners in the property;

(c) existing encumbrance, if any, affecting the property;

(d) description of each apartment containing its location, actual built-up area, number of rooms, immediate common area to which it has access, and any other data necessary for its proper identification;

(e) description of the common areas and facilities;

(f) description of the limited common areas and facilities, if any, stating to which apartments their use is reserved;

(g) value of the property and of each apartment, and the percentage of undivided interest in the common areas and facilities appertaining to each apartment and its owner

(h) such other particulars as may be prescribed.

(2) The Declaration referred to in sub-section (1) may be amended under such circumstances and in such manner as may be prescribed.

10A. A Declaration or an instrument to be submitted before the competent authority and to be dealt with by him:

(1) Any Declaration referred to in section 2 or any amendment thereto or any instrument referred to in sub-section (3) of section 4, shall, in the first instance, be submitted, in duplicate, within fifteen days from the date of its execution, to the competent authority along with copies of site plans, building plans and relevant title deeds.

(2) On receipt of a Declaration or an amendment thereto or an instrument referred to in sub-section (1), the competent authority shall,—

(a) after issuing notice to the parties concerned and after holding such inquiry, if any, as it may consider necessary for the purpose, examine the Declaration, the amendment or the instrument as the case may be, to ascertain whether—

(i) the property concerned comes within the purview of this Act. and

(ii) the Declaration, the amendment or the instrument is in order,

(b) by an order in writing giving reasons therefor accept or reject the Declaration, the amendment or the instrument, and

(c) in case of acceptance, immediately return the Declaration, the amendment or the instrument along with all the enclosures to the owner or owners, as the case may be, for registration, within fifteen days of the date of return,

(d) in case of rejection, forthwith communicate the order of rejection to the owner or owners.

(3) Any person aggrieved by an order of rejection under sub-section (2) may appeal to such appellate authority as the State Government may, by notification in the Official Gazelle, appoint, provided that such appeal shall be made within thirty days from the date of such order or within such further period as the appellate authority may allow on sufficient grounds being shown in this behalf. The order of the appellate authority on any such appeal shall be final and shall not be called in question in any court of law.

(4) Any order referred to in clause (b) of sub-section (2) or in subsection (3) shall not be called into question in any court of law.

10B. Power to call for records etc:

Notwithstanding anything in this Act, the State Government may, on its own, call for and examine the records of any proceeding before the Competent Authority or the appellate authority within thirty days from the date of any order made by such Competent Authority or appellate authority, as the case may be, in such proceeding, and make such order thereon as it may think fit.

11. Withdrawal from the provisions of the Act:

(1) All the apartment owners may with the prior permission of the State Government, withdraw a properly from the provisions of this Act by an instrument executed to that effect.

(2) Upon the property being withdrawn from the provisions of this Act, it shall be deemed to be owned in common by the apartment owners and the share of each such owner in the property shall be the percentage of undivided interest previously owned by such owner in the common areas and facilities.

(3) Any encumbrance 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,

12. Instruments of Declaration etc., compulsorily registrable:

(1) All instruments relating to the Declaration or any amendment thereto referred to in section 10 or the withdrawal of a property from the provisions of this Act referred to in section 11 or the instrument referred to in sub-section (3) of section 4 shall be deemed to be instalments compulsorily registrable within the meaning of clause (b) of sub-section (1) of section 17 of the Registration Act, 1908.

(2) The withdrawal provided for in section 11 shall in no way bar the subsequent re-submission of the property to the provisions of this Act.

13. Bye Laws:

(1) Every property shall be administered in accordance with such bye-laws as may be framed by the Competent Authority with the prior approval of the State Government.

(2) The bye-laws shall provide for the following amongst other mailers, namely:—

(a) the manner in which the Association of Apartment Owners is to be formed, the election of a Board of Managers from among the apartment owners, the number of persons constituting the Board, the number of members of such Board to retire annually, the powers and duties of the Board; the honorarium, if any, of the members of the Board; the method of removal from office of members of the Board; the powers of the Board to engage the services of a Secretary or Manager, delegation of powers and duties to such Secretary or Manager;

(b) method of calling meetings of the apartment owners and the number to constitute a quorum;

(c) election of a President who shall preside over the meetings of the Board and of the Association of Apartment Owners;

(d) maintenance, repair and replacement of the common areas and facilities and payments therefor;

(e) manner of collecting share of the common expenses from the apartment owners;

(f) any other matter considered to be necessary for the administration of the property.

14. Separate assessment:

Notwithstanding anything to the contrary in any other law for the time being in force, each apartment (of a properly including its percentage of undivided interest in the common areas and facilities thereof) the owner of which does not own any other apartment in such property, shall be deemed to be a separate unit for the purpose or assessment of municipal rates and taxes.

15. Charge for property of common expenses:

All sums assessed by the Association of Apartment Owners for the share of the common expenses chargeable to any apartment shall constitute a charge on such apartment prior to all other charges, except charge, if any, on the apartment for payment of municipal rates and taxes.

16. Liability for unpaid common expenses:

Upon the sate of an apartment, the purchaser or the apartment shall be jointly and severally liable with the vendor for all unpaid assessment against the latter for his share of the common expenses up to the time of the sale.

16A. Penalty:

(1) If the owner of any apartment subject to the provisions of this Act, contravenes—

(a) any of the provisions of section 7 or section 8,

(b) any bye-law that may be framed by the Competent Authority, or

(c) any covenant, condition or restriction set forth in the Declaration to which he is subject or a party, or if such owner stands in the way of submitting the properly to the provisions of this Act and does not furnish the particulars or documents as required for execution of Declaration in accordance with the provisions of section 10A and the rules made under this Act, he shall, at the instance of the Manager or the Board of Managers on behalf of the Association of the Apartment Owners, an aggrieved apartment owner or, in a proper case, the Competent Authority, on conviction before a Magistrate, be liable lo a fine which may extend to rupees one thousand or to a term of imprisonment which may extend to six months or to both, and in case of continuing contravention, to additional fine which may extend to rupees fifty for everyday during which such contravention continues after conviction for the first such contravention.

(2) Any contravention punishable under sub-section (1) may, where prosecution lies or is instituted at the instance of, or by, the Manager or the Board of Managers on behalf of the Association of the Apartment Owners, be compounded by such Association, either before or after the institution of the prosecution, on payment of, for credit lo its fund, such sum as it may think fit.

(3) The provisions of this section shall apply without prejudice lo those of section 6, section 15 and section 16.

16B. Control and supersession:

(1) If the Association or Apartment Owners having right to be exercised by the Manager or the Board or Managers fails to perform its functions under this Act or the bye-laws made there under, the Competent Authority may give to it such directions as that Authority considers fit.

(2) If the Competent Authority is of the opinion that the function of the Manager or the Board of Managers is detrimental to the interest of the Association of Apartment Owners or of the apartment owners or is against the public interest, the Competent Authority may give a notice to the Manager or the Board of Managers to show cause why he should not be removed or, as the case may be, it should not be superseded. If the reply of the Manager or the Board of Managers is not considered satisfactory, the Competent Authority may by order remove the Manager or supersede the Board of Managers, as the case may be, and appoint any member from amongst the members of the concerned Association of Apartment Owners or any employee of the Stale Government or any other person as administrator to perform the functions or the Manager or the Board of Managers, as the case may be, for a period not exceeding six months:

Provided that the Competent Authority may, if it considers necessary so to do by order extend the period of removal of the Manager or supersession of the Board of Managers, as the ease may be, for a further period, not exceeding six months at a time; so, however, that the aggregate period of removal or supersession, as the case may be, shall not exceed three years.

17. Power to make rules:

The State Government may make rules for carrying out the purposes of this Act.

18. Removal of doubts:

For the removal of doubts, it is hereby declared that the provisions of the Transfer of Property Act, 1882, shall, in so far 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 as those provisions apply in relation to any other immovable property.

 

DELHI FIRST TIME ON A PROFESSIONAL TRIP














 

GANESH CHATURTHI PUJA / GANAPATI PUJA

 















judgment on limitation in consumer proceeding NCDRC

 

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI

 

REVISION PETITION NO.3949 of 2008

(From the Order dated 09.09.2008 in S.C. Case No. FA/08/237 of the State

Consumer Disputes Redressal Commission, West Bengal)

 

Jay Grih Nirman Pvt. Ltd.,

A Company Registered under the

Companies Act, 1956 having its

Registered Office at Premises No. 11,

Crooked Lane, 1st Floor, Kolkata – 700 069.            ..  Petitioner

 

Vs.

 

Arunoday Apartment Owners’ Association

A Registered Association, being represented by

Mr. Arun Kumar Sen, Authorised Signatory,

Having its office at 4A, N.N. Dutta Road, under

P.S. Jadavpur, Kolkata – 700 040.                                     .. Respondent

 

BEFORE: -

HON’BLE MR. JUSTICE D.K. JAIN, PRESIDENT

HON’BLE MRS. VINEETA RAI, MEMBER

HON’BLE MR. VINAY KUMAR, MEMBER

 

For the Petitioner                            :         Mr. Rakesh Mishra, Advocate

                                                          Mr. Krishnendu Datta, Advocate

                                                          Mr. Abhinav Hansaria, Advocate

 

For the Respondent              :         Mr. Dibyadyuti Banerjee, Adv.

                                                          Mr. Abhijit Sen Gupta, Adv.

 

O R D E R

(Pronounced on 13th day of January, 2014)

 

D.K. JAIN, J., PRESIDENT

 

            This revision petition under Section 21(b) of the Consumer Protection Act, 1986 (for short “the Act”) has been preferred by the opposite party in the Consumer Complaint (D.F. Case No. 180 of 2006) against order dated Sept.9, 2008 passed by the State Consumer Disputes Redressal Commission, West Bengal (for short “the State Commission”) in first appeal (SC Case No. FA/08/237), whereby the order passed by the District Consumer Disputes Redressal Forum, Alipore (for short “the District Forum”) dismissing the aforesaid complaint has been reversed and the complaint has been allowed with consequential reliefs.

2.         Briefly stated, the facts giving rise to this petition are as follows:

            In August 1981, by three separate registered Deeds of Conveyance, the three original owners of the subject land transferred their undivided 1/3rd share each to one Jupitor Drug Company, which in turn, entered into an agreement dated Aug.23, 1988 with the petitioner, for development of the land by constructing flats, etc.. Flats with car parking area in the basement, one assembly hall on one side and one maintenance area on the other side of the ground floor of the building were constructed by the petitioner. According to the petitioner, sale deeds in respect of the flats were executed in the year 1990 and possession of the flats/car parking spaces were also delivered to the respective buyers immediately thereafter.

3.         Upon purchase of the flats and car parking, the flat owners formed a co-operative society, named as Arunoday Apartment Owners Association, which was registered on June 12, 2003.  Mrs. Monika Sen was a party to the tripartite agreement, dated April 17, 1990, between the owners, developers and herself, as purchaser of one of the flats. She is also one of the members of the association. It seems that there was some dispute relating to the possession of the ‘assembly hall’ and ‘maintenance area.’ The petitioner/developer’s stand was that both the said areas belonged to them and the owner, whereas the association claimed that all the flat buyers had undivided share in the said two areas. However, having failed to get the possession of the said assembly hall and maintenance area, alleging deficiency in service on the part of the petitioner in not handing over the possession of the said spaces, on Oct.30, 2006 a complaint against the petitioner was filed, inter alia, praying for handing over of the possession of the ‘assembly hall’ and the ‘maintenance area’ on the ground floor along with compensation. 

4.         The complaint was resisted by the petitioner on several grounds, including the objections that the complaint was barred by limitation; the association had no locus standi to file the complaint and that under the provisions of the WB Building (Regulations of promotion of construction and transfer by promoters) Act, 1993 (for short “the WB Act”) any dispute between the purchaser of any flat and the promoter had to be resolved by the mechanism stipulated in the Act and not in any other proceedings. The objection of the petitioner relating to limitation was rejected, vide order dated May 28, 2008. Nevertheless, the District Forum dismissed the complaint on merits observing, thus:-

“In the present case the O.P./developer had entered into contract separately with the purchasers of the flats under Arunodaya Apartment, who formed an Association later on known as Arunodaya Apartment Association.  A copy of one such contract between the O.P/developer, the land owner and one purchaser of flat viz. Ms. Monika Sen entered on 17/04/1990 has been filed by the petitioner.  The entitlement of the purchaser has been mentioned in the Second Schedule of the contract which has been shown as a flat of 1177 sq. ft. together with common areas and facilities, staircases, passages, use of lifts among with a covered car parking space for one car inside the said building.  There is no mention of a right to use any Assembly hall or Maintenance area.  Rather it becomes clear after going through the terms of the contract at paras IV(m) and IV(g) that the purchaser of flat was not granted any rights in respect of the land left out in the premises beyond the built up area of the flat.  The Assembly hall and the Maintenance area are lying at the ground floor and are outside the built up area of the flats.  The petitioner association has also claimed that the Assembly hall and the Maintenance area had been built by the developer out of the money realized by the developer from the flat purchasers.  But this was not supported by any documents at all and as such we have to reject the claim as baseless.”

 

5.         Being dissatisfied with the order passed by the District Forum, the complainant association filed an appeal before the State Commission. The State Commission summarized the rival stands into three points, viz., (i) whether the complainant association was a “consumer” under the Act; (ii) whether the complaint was barred by limitation and (iii) whether the complainant association was entitled to possession of the ‘assembly hall’ and the ‘maintenance room’ in terms of the sale deeds executed with each of the flat owners.  All the three points having been decided in favour of the complainant, the opposite party/developer is before us in this revision petition.

6.         Ld. Counsel appearing for the petitioner vehemently submitted that the impugned order suffers from the vice of non-application of mind inasmuch as the State Commission has failed to take into consideration the terms of the purchase agreement and the sale deed, which clearly define the proportionate undivided interest of the flat owners in the common areas, “such as staircases, lobbies, pump, drainages…….” etc. and show that the alleged ‘assembly hall’ and ‘maintenance hall’ did not form part of the common area and they continued to belong to the developer for their own use. It was pleaded that the WB Act clearly bars any civil suit or the like for redressal of a dispute between the purchasers of the flat and the promoters. It was strenuously argued that the possession of the flats having been delivered and sale deeds having been executed in the year 1994 and even the association having been formed and registered as a cooperative society on June 12, 2003, the complaint filed on Oct.30, 2006 was clearly barred by limitation.

7.         Ld. Counsel appearing on behalf of the complainant, on the other hand, supported the decision of the State Commission. It was submitted that non-delivery of possession of the assembly hall, etc., by the petitioner/developer was a continuing default and, therefore, the complaint was filed within time.

8.         Since we are of the view that in the present case, the complaint was not filed by the association within two years from the date on which the “cause of action” had arisen, it was barred by limitation and, therefore, it would be unnecessary to deal with the contentions touching upon the merits of the complaint. 

9.         Section 24A of the Act bars any forum set up under the Act, from admitting a complaint, unless the complaint is filed within two years from the date on which, the “cause of action” has arisen. The provision expressly casts a duty upon all the three Fora not to admit a complaint filed beyond the period prescribed in the Section, unless the complainant satisfies the Consumer Forum, that the complainant had sufficient cause for not filing the complaint within the period of two years from the date on which the “cause of action” had arisen. 

10.       In SBI Vs. B.S. Agriculture Industries (2009) 5 SCC 121, dealing with the same provision, the Supreme Court has opined, thus:

“11…. It would be seen from the aforesaid provision that it is peremptory in nature and requires the consumer forum to see before it admits the complaint that it has been filed within two years from the date of accrual of cause of action.  The consumer forum, however, for the reasons to be recorded in writing may condone the delay in filing the complaint if sufficient cause is shown.  The expression, ‘shall not admit a complaint’ occurring in Section 24-A is sort of a legislative command to the consumer forum to examine on its own whether the complaint has been filed within the limitation period prescribed thereunder.

 

12.       As a matter of law, the consumer forum must deal with the complaint on merits only if the complaint has been filed within two years from the date of accrual of cause of action and if beyond the said period, the sufficient cause has been shown and delay condoned for the reasons recorded in writing.  In other words, it is the duty of the consumer forum to take notice of Section 24-A and give effect to it.  If the complaint is barred by time and yet, the consumer forum decides the complaint on merits, the forum would be committing an illegality and, therefore, the aggrieved party would be entitled to have such order set aside.” (Emphasis supplied by us)

 

11.       It has thus been held by the Supreme Court that Section 24A of the Act mandates that before admitting a complaint, all the Fora constituted under the Act, must examine whether or not the complaint under the Act has been preferred within two years from the date on which the “cause of action” has arisen. 

12.       Explaining the meaning and import of the term “cause of action” in  Kandimalla Raghavaiah and Company Vs. National Insurance Company and Another (2009) 7 Supreme Court Cases 768, the Supreme Court has observed as under:-

“The term “cause of action” is neither defined in the Act nor in the Code of Civil Procedure, 1908 but is of wide import.  It has different meanings in different contexts, that is when used in the context of territorial jurisdiction or limitation or the accrual or right to sue.  Generally, it is described as “bundle of facts”, which if proved or admitted entitle the plaintiff to the relief prayed for.  Pithily stated, “cause of action” means the cause of action for which the suit is brought. “Cause of action” is cause of action which gives occasion for and forms the foundation of the suit.”

           

It has been held that the term “Cause of action” is cause of action which gives occasion for and forms the foundation of the suit.

13.       Tested on the touchstone of the afore-noted principle, we are of the opinion that the complaint preferred by the complainant association on Oct.30, 2006 was barred by limitation and in the absence of an application for condonation of delay in filing the same in terms of the Sub-Section 2 of Section 24A of the Act, it could not be admitted by the Fora below for adjudication.

14.       It is not in dispute that on March 2, 1990 an agreement for construction of flat was entered into between the owners of the subject land, the petitioner as developer and one Ms. Monika Sen as the purchaser; on April 17, 1990 sale deed in favour of the said Monika Sen was executed. In both the said documents there is a recital as to the interest of each of the flat buyers would be having in the land comprised in the premises described in the schedules to the deeds but there is no reference to any ‘assembly hall’ or to a separate ‘maintenance room’ possession whereof is being claimed by the association. We find that the averments in the complaint in this behalf are quite vague. Nevertheless, paragraphs 4 to 8 of the complaint do spell out the stand of the complainant and would be useful for deciding the question of limitation. The same are extracted below:

            “4. That thereafter the said Jay Grih Nirman (P) Ltd. by procuring the purchases of flats and car parking spaces had constructed the said building on the basis of the said sanctioned building plan, which is a G + 5 storyed building comprising 15 flats (3 on each floor) with the car parking area in the basement and as per the said building plan the developer has also constructed one assembly hall on the one side of the ground floor and one maintenance area on the other side of the ground floor of the said building by the money of the intending flat purchasers. On such construction of the building the developer has already delivered the possession of the respective flats and car parking spaces to the said intending purchasers who had invested their money to the developer for the purpose of construction of their flats and the developer also executed sale deeds of those flats and car parking spaces to the respective flat purchasers.

 

            5. That on such purchase of the flats and car parking spaces the said purchasers have formed an Apartment Owners’ Association in the name and style of “Arunoday Apartment Owner’s Association”, for the purpose of maintaining and protecting the common interest of the said purchasers. The said association of purchasers has already registered their association in the office of the West Bengal Apartment Owner’s Association vide registration Serial No.13A of 2003. A registration certificate to that effect has been annexed herewith as Annexure C.

 

            6. That since formation of the said Apartment Owner’s Association the petitioner Association through its Management Board has been looking after the common interest of the flat owner’s of that building and found that the developer who had constructed the building with the money of the purchasers of flats and car parking spaces has been committing deficiency in service in preventing the petitioner Association and its members, who are the owners of apartments independently from using the said assembly hall and the maintenance area for their purpose and have been locking up the same and are using the same, to store his junks.

 

            7. In the year 1996 the said developer had tried to convert the said assembly hall and the maintenance room together with the basement car parking area into two flats by making construction therein. But upon the complaints of one of the apartment owners of the said building to the then Chief Minister, Mr. Jyoti Basu, the Mayor and the Commission of K.M.C., etc., such construction was demolished and the petitioner Association recovered the access to the car parking area for its members but the said assembly hall and the maintenance area which are the common property of the apartment owners, have not yet been handed over and the same are still lying under lock and key by the developer and the developer has already started construction on one portion of the said professed areas of assembly hall.

 

            8. That your petitioner and its members on several occasions, requested the developer to hand over the key of the said assembly hall and maintenance area to them, but the developer with a mala fide intention and to make wrongful gain from the said common property of the apartment owners is not handing over possession of the same and as a result the petitioner and its member are suffering huge loss of common maintenance fund to the tune of Rs.20,000/- per month since long.” 

 

15.       It is manifestly clear from the above-extracted paragraphs that right from the threshold, when the possession of the flat and parking areas were delivered to the respective purchasers sometimes in the year 1994, they were never put in possession of the two areas on the ground floor where, according to them, an ‘assembly hall’ on one side of the ground floor and one ‘maintenance area’ on the other side had been constructed by the developer. On their own showing, in the year 1996, the developer tried to convert the said areas into two flats by making construction thereon but upon complaint to the Chief Minister such construction was demolished and since the formation of the association i.e. on June 12, 2003, the developer had prevented them from using the said ‘assembly hall’ & ‘maintenance area’ by locking up and using the same to store their junks.  Thus, even assuming for the sake of argument that the buyers sanguinely believed that in the near future they will be permitted the use of the subject areas, at least in the year 1996 when the developer allegedly tried to convert the ‘assembly hall’ and ‘maintenance area’ into two flats, which action was successfully foiled by the flat owners, made the stand of the developer abundantly clear to them that they were not treating these parcels of land as common areas in which all the flat owners had undivided equal share. Hence, if at all there was any deficiency of service on the part of the developer in not handing over the possession of the said areas, the “cause of action” to sue the developer definitely arose in the year 1996, if not in 1994, when the possession of the flats was admittedly handed over to them.  Furthermore, if the association, which was formed and was registered on June 12, 2003 for looking after the interest of the flat owners jointly, no reason is forthcoming as to why the complaint against the developer, the petitioner herein, was filed only on Oct. 30, 2006. 

16.       As regards the plea that since the developer was under an obligation to hand over the possession of the subject areas to the flat owners, the “cause of action” has to be treated as a “continuing cause of action” and, therefore, the complaint was filed within time, the same is noted to be rejected.  We may note at the cost of repetition that there is a clear averment in the complaint that in the year 1996 developer’s attempt to convert the areas in question into two flats was successfully thwarted.  This averment, by itself, made the stand of the developer, qua the subject areas, more than clear to the flat buyers to the effect that they were not willing to part with the possession of these two areas in question and knocks the bottom of the Complainant’s case in so far as the question of accrual of “cause of action” is concerned.  Looked at from any angle, we are convinced that the complaint by the association, alleging deficiency of service, was hopelessly barred by limitation and could not be admitted for adjudication on merits, more so when there was no prayer for condonation of delay in filing the same.

17.       For the aforesaid reasons, the revision petition is allowed; the orders of the Fora below on the question of limitation are set aside and DF Case No. 180 of 2006 is dismissed as barred by limitation.

18.       During the course of hearing, it was pointed out that some civil litigation in respect of the ‘assembly hall’ is pending.  If that be so, we clarify that our discussion above is solely for the purpose of adjudication on the question of limitation under Section 24-A of the Act, and shall not be construed as an expression of opinion on the merits of the aforesaid complaint or any other proceedings between the parties before us.

19.       The parties are left to bear their own costs. 

 

…………….. . . . . .

                                                         (D.K. JAIN, J.)

     PRESIDENT

 

                                                       . . . . . . . . . . . . . . . .

         (VINEETA RAI)

         MEMBER

 

                                                   . . . . . . . . . . . . . . . .

      (VINAY KUMAR)

         MEMBER

 

 

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