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Corporate Law

Area-Based Maintenance Charges Invalid as Common Infrastructure Is Shared Equally

Case Law Details

TaxGuru Citation
2026 taxguru.in 7189
Case Name
Arun Kumar Rao v. Board of Managers (XL Additional City Civil and Sessions Court, Bengaluru City, CCH-41)
Date of Judgement/Order
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Arun Kumar Rao v. Board of Managers (XL Additional City Civil and Sessions Court, Bengaluru City, CCH-41)

Background of the Dispute

The suit was filed seeking declarations that the resolution passed in the Extraordinary General Body Meeting (EGBM) dated 25.07.2020 and the invoices issued for maintenance charges from May 2020 to December 2020 were null and void and not binding upon the plaintiff. The plaintiff also sought a declaration that maintenance charges for common amenities, facilities, infrastructure, and services should be collected equally from all apartment owners on a per-flat basis rather than according to the size or area of the flat.

The plaintiff was a joint owner of a flat in an apartment complex consisting of 660 flats spread across eight tower blocks. The apartment complex was governed by the provisions of the Karnataka Apartment Ownership Act, 1972, a registered Deed of Declaration, and the bye-laws of the owners’ association.

Initially, maintenance of the premises and essential services was carried out by the developer. Subsequently, responsibility for maintenance was proposed to be transferred to the apartment owners’ association.

Events Leading to the Dispute

An Extraordinary General Body Meeting was held on 12.01.2020. During this meeting, six models for calculation of common maintenance charges were presented before the owners. Option No. 2 was approved by a majority vote and was recorded as Resolution No. 9/2020.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,002

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