Sample of development joint venture agreement between owner of land and devel...
The West Bengal Apartment Ownership Act, 1972
1.
2.
3. The Act outlines the basic legal provisions
ensuring legal rights vested in the Apartment
owners as well as the innovative ideas for
maintenance of common use and facilities
and also custody of common assets in which
an individual flat owner has a proportionate
share.
4.
5. 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 its undivided
interest in the common areas and facilities
forms an independent residential unit and
includes a flat.
6. The West Bengal Apartment Ownership Act,
1972 applies to every building having
residential units or commercial units, and the
sole owner or all the owners of every such
building .
However, the State Government may
exempt, by general or special order, any such
owner for submitting such building to the
provisions of the aforementioned act.
7.
8. In respect of any property an owner includes:
Any person owning such property or part
thereof or apartment, or
Any person deemed to be owning such
property or part thereof or apartment, or
Any promoter, or
Any lessee of such property or part thereof or
apartment
9. Apartment Flat
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 its undivided
interest in the common
areas and facilities forms
an independent
residential unit and
includes a flat.
Flat means a separate
and self-contained
premises used or
intended to be used for
residence or office or
show-room or shop or
godown (and includes
a garage), the premises
forming a part of a
building and includes
an apartment.
10.
11. Common areas and facilities of an apartment are
the area and facilities that are enjoyed by all the
apartment owners of a building. Common areas
and facilities include:
The land on which the building is located and all
easements, rights and appurtenances belonging
to the land and the building.
The Foundations, columns, girders, beams,
supports, main walls, roofs, halls, corridors,
lobbies, stairs, stair-ways, fire-escapes and
entrances and exits of the building,
12. 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,
The premises for the lodging of janitors or
persons employed for the management or the
property,
Installations of common services, such as
power, light, gas, hot and cold water, heating,
refrigeration, air conditioning, sewerage, etc.,
13. The elevators, tanks, pumps, motors,
compressors, pipes and ducts and in general all
apparatus and installations existing for common
use,
Such other common facilities, as may be
specially provided for in the Declaration,
All other parts of the property necessary or
convenient to its existence, maintenance and
safely, or normally in common use;
14.
15. 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.
16. A promoter is a person who constructs a
building or causes to be constructed a
building for the purpose of transfer. Such
transfer may be by way of-
Sale
Gift
Or otherwise
Such transfer may be in favour of any other
person, company, co-operative society or
association of persons .
17. The laws of our country leave a major omission
by not prescribing a requisite set of
qualifications for eligibility to be termed as a
promoter. Promoter is a term of professional
art and the expertise expected of him under
provisions of the promoters’ law in force
comprises certain level of proficiency in
diverse disciplines of building technology,
architecture, laws relating to transfer of
property and contract, co-operative laws,
conveyancing , fiscal laws etc.
18. The lack of qualification among promoters major
lacunae which inducts a host of unscrupulous
and uneducated contractors within the ambit of
the definition side by side with renowned
architects and firms of repute. In the result, the
term ‘promoter’ tends to make a somewhat
degrading connotation in the social and market
context. The coverage and sweep of the
application of the law has also suffered in
consequence.
19.
20. Each apartment owner shall be entitled to the
exclusive ownership and possession of his
apartment.
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.
21. 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,
• acquiring by purchase or by inheritance, or
• 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.
22.
23. The West Bengal Apartment Ownership Rules,
1974 mainly provide for the manner in which
a Declaration under section 10 of the West
Bengal Apartment Ownership Act, 1972 has
to be submitted and also the form in which
the instrument of conveyance for the transfer
of the property shall be executed and
registered.
24.
25. West Bengal Apartment Ownership Bye-laws,
1974 is a statutory bye-law having been
prepared under powers conferred by sub
section(1) of section 13 of the West Bengal
Apartment Ownership Act, 1972. It deals
mostly with the administration of the
common areas and facilities by the
Association of Apartment Owners.
26. West Bengal Apartment Ownership Bye-laws,
1974 states the process of formation of an
Association, the power and functions of the
association, the constitution of a Board of
Managers for managing the affairs and
business, the procedure of meeting thereof
and other allied matters. Thus the basic
features of the essential aspects of the
enactment are detailed in the Rules and Bye-
laws.
27.
28. An association of owners is an association of
persons competent to contract in their own
name. It is an association formed in
accordance with the provisions made in the
The West Bengal Apartment Ownership Bye-
laws, 1974.
29. There should be an Association of Apartment
Owners in respect of each property. Each
owner of such property shall be a member of
such association.
Where more than one persons jointly own an
apartment, such persons shall nominate one
of themselves to be a member of the
Association concerned, and immediately send
intimation in respect to the board concerned.
30. Within 45 days from the appointed date or from
the date of submission of the property concerned
to the provisions of the Act, whichever is later, or
within such further period as the competent
authority may, on application made to it or of its
own motion, allow, the apartment owners of each
property, owned by four or more apartment
owners, shall in a general meeting to be held on
such date and at such time and place as may be,
convenient to all such owners and to be
prescribed over by an apartment owner chosen
by the apartment owners present in such meeting
31. If an apartment owner transfers his property by
sale or leases out the property, he ceases to be
a part of the association concerned from the
date of sale or lease. The purchaser or the
lessee immediately becomes a member of the
Association in place of the transferor.
32. The final authority of an Association shall vest
in the general meeting of the members,
which shall administer the property
concerned in accordance with the Act and the
Bye-laws and exercise general supervision
over the affairs and business of the
Association and, in particular, over the
activities of the Board.
33. The functions of an Association shall be:-
To raise funds for the association as provided
for in the Act and the Bye-laws;
To provide maintenance, repair and
replacement of the common areas and
facilities of the property and payments
thereof;
34. To provide for proper maintenance of
accounts;
To provide for and do any other thing for the
administration of the property.
35.
36. The annual general meeting of every
Association shall be held in the month of
February each year. The business of the
annual general meeting of an Association
shall be:
To consider the annual report of the Board;
To consider the audit report and the audited
financial statement of accounts;
37. To consider and approve the annual budget for
the next financial year, including-
a) Determination and assessment of monthly
contribution to be made in the next financial
year by each apartment owner towards
common expenses; and
b) Retention or letting out of the common areas
and facilities, as described, for shopping,
commercial or other purposes in the
Declaration made and submitted under
section 2 of the West Bengal Apartment
Ownership Act, 1972
38. To elect Managers of the Board from among
the apartment owners to fill up vacancies; and
To transact any other business that may be
laid before the meeting by the Board or to be
considered by the annual general meeting, to
be necessary for the administration of the
property.
39. On requisition of two-third members of an
Association or of the Board or as required
under the Bye-laws, special general meeting
of such an Association may be held as often
as may be necessary to consider all or any
subjects specified to be the business of the
annual general meeting and any other
business of general importance in the interest
of the Association and within the scope of the
Act and the Bye-laws.
40. The requisites of a general meeting are as follow:
A notice of a general meeting including an annual
general meeting stating the place, date and hour
of the meeting together with a list of business to
be transacted thereat, shall be sent to every
members atleast seven days before the date of
the meeting.
The general meeting shall be presided over by the
President and, in his absence, by a member to be
chosen by the members present in such
meeting.
The quorum for a general meeting shall be one-
third of the total number of members subject to
the minimum number of three members.
41. The rules of a general meeting are as follows:
Votes shall be cast in person.
The meeting shall stand adjourned if there is
no quorum within half an hour from the time
appointed for the meeting.
The minutes of the meeting should be
recorded in a book kept for the purpose. The
minutes are to be drawn up by the Secretary
of the Association and shall be duly signed
by the person presiding over the meeting on
the termination of the meeting or as early as
possible.
42.
43. The Board of Managers is the executive wing of
the Association of the Apartment Owners. The
constitution of a Board of Managers along with
its functions are detailed in Chapter III of the
West Bengal Apartment Ownership Bye-Laws,
1974. The Board acts according to the powers
vested in them by the Act. But the ultimate
authority rests with the Association of
Apartment Owners assembled at a general
meeting deciding all matters in the manner
prescribed in the Bye-Laws.
44. The number of Mangers of a Board shall be equal to
one-third of the number of the apartment owners of
the property concerned but in no case it shall be
less than three or more than twenty-four.
Within 15 days from the formation of an Association,
the apartment owner presiding over the general
meeting should serve notice upon each member of
the Association fixing the date, time and place at
which a special general meeting shall be held for
the election of the manager of the Board of such
association by secret ballot in such manager as may
be decided at the said meeting. The date of the
meeting should not be before 15days from the date
of issue of such a notice.
45. The notice for a special general meeting shall be
effected by personal service or through letter
sent by registered post.
After the Managers of the Board are elected, the
Board shall, within ten days of the date of
election of its managers, hold its first meeting
and elect its President who shall forthwith
forward the names of the President and of the
managers of the Board in Form No. 3 to the
Competent Authority, which shall cause those
names to be entered in the relevant register to
be maintained in its office for the purpose
46. A Board shall meet atleast once a month and
shall be presided over by its President and in
his absence, by a Manager to be elected by
the Managers present in the meeting
A Board should give notice about the date,
time and venue of the meeting and shall
observe rules and procedures in regard to the
transaction of its business at its meeting as
may be determined by such Board.
47. All the questions which come up before any
meeting of a Board shall be decided by a
majority of votes of the managers present
and voting, and in the event of equality of
votes, the President and in his absence the
Manager presiding shall have and exercise a
second or casting vote.
48. The function of the Board of Mangers are as
follows:
The care, up-keep, maintenance, repairs and
replacement of the common areas and
facilities including the limited common areas
and facilities of the property concerned;
The collection of money, including arrears,
due from each apartment owner on account
of monthly assessment made by the
Association concerned for payment towards
common expenses;
49. The collection of monthly rents out of the
common areas and facilities let out for
shopping, commercial or other purposes, as
specified in the Declaration
The proper maintenance of the funds and
accounts of the Association concerned, and, for
the building up of a reserve fund out of the
common profits left over after meeting the
common expenses
Securing and furthering the interests of the
Association concerned in every possible way;
Hearing and dealing with all complaint.
50. The power and duties of the Board are as
follows:
Receive and disburse money, sanction
working expenses, ensure regular and day-
to-day maintenance of the cash book under
the supervision of the treasurer and make
arrangements for daily verification of cash
balance.
Maintain and inspect the accounts of the
Association concerned.
51. Maintain an account of amounts received and
expended on behalf of the association and also
keep an account of the assets and liabilities of
the Association.
Prepare an annual report, an audited annual
financial statement and annual budget estimate.
Do all the needful for the purpose of auditing
the accounts of the Association;
Remove and rectify all defects and irregularities
pointed out at the audit.
Convene annual general meeting of the
Association
Realise and enforce realisation of all dues of the
Association and meet all its liabilities.
52. Let out the common areas and facilities for earning
common profits and settle terms and conditions for
such letting out.
Make arrangements and enter into agreements for
the proper and effective maintenance, repair and
replacement of the common areas and facilities and
make payments thereof;
Institute, defend, or compound any legal
proceedings for and against the Association.
Improve the condition of general welfare of the
apartment.
Maintain an up-to-date Register of Apartment
Owners.
Perform any other duty or discharge any other
function as per the directions of the Association in a
general meeting
53. The duties and liabilities of the Apartment Owners
are as follows:
On being directed by the Board, the owner of the
apartment shall immediately undertake and
complete all maintenance and repair work within
his own unit. If the owner of the apartment
delays the said work then he shall be responsible
for the damage that his failure to undertake such
work may cause to the said property and shall
also be liable for payment of damages as may be
determined by the Board.
54. All the repairs, required to be effected in respect of
the doors, windows, internal installations(including
sanitary installation) in connection with, or in
relation to water, light, gas, power sewage,
televisions, air-conditions, and all other kinds of
accessories within the area of such apartment, shall
be undertaken at the expenses of the owner of the
apartment concerned.
The owner of an apartment shall reimburse the
Association for any expenditure that may have been
incurred by it for replacing anything pertaining to
common areas and facilities, such repairing or
replacing being required to be effected due to any
damage caused by such apartment owner in respect
of the common areas and facilities.
55. All apartment units, except those specifically
meant for non-residential purpose, shall be
utilised for residential purpose only and no
apartment owner shall utilise them, or any
portion thereof except for residential purpose.
56.
57. Every Association should have a fund called the
Apartment Owners Fund to which the
following should be credited:
All the dues and rent collected from its
members and its tenants
Any amount received or raised by the
association by way of advance, grant,
donation, loan or otherwise
Any amount due, payable, or made over, to
the association
58. An account in the name of an Apartment Owner’s
Association Fund should be opened in the State
Bank Of India or in any other Nationalised Bank in
the name of the Apartment Owner’s Fund. All the
said funds should be deposited in the account
and the account should be operated jointly by the
Treasurer and the President of the Association.
Payment above Rs. 20/- shall be made by
cheques and the Treasurer,as a representative of
the Association, may retain some amount of
money in his hand for defraying petty expenses.
59. It is not necessary for the association to be
registered but having the association registered
will get legal benefits. If a court is approached
for such small issues it might take several
months or even years to resolve such disputes as
the court will have a hundred other bigger
disputes to take care of. If you have a registered
apartment owner’s welfare association, it will
help work as a mediator and helps in resolving
the dispute without any legal interference. Apart
from central laws like the Societies Registration
Act and the Apartment Association Act, there are
local legislations in different cities.