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Refusal to Pay Maintenance to Flat Owners Association is Unjustified: Karnataka HC

Case Law Details

TaxGuru Citation
2024 taxguru.in 4764
Case Name
Shangrila Flat Owners Association Vs Capt. Mohan Prabhu (Karnataka High Court)
Date of Judgement/Order
Only available for paid members
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Shangrila Flat Owners Association Vs Capt. Mohan Prabhu (Karnataka High Court)

Facts: The suit was for the relief of recovery of sum of Rs.6,58,695/- with interest at 12 percent per annum from the date of suit till realization with cost.

Plaintiff, M/s.Shangrila Flat Owners Association, is an Association registered under the provisions of Karnataka Apartment Ownership Act, 1972 in terms of Deed of Declaration dated 29.12.1995. Defendant  is the owner of an apartment   and is also member of the plaintiff association.  Defendant, along with 20 other persons, had entered into an agreement for construction of apartment building with one Mr.AAK. Defendant had been the office bearer of the  Association and had participated in the 4 meetings of the   association in fixing the maintenance charges payable per month towards sinking fund and other ancillary expenses from time to time. The  Association is in charge of common areas, maintenance, common facilities, cleanliness, employment of watchmen paying for fuel and AMC of generator, paying consumption bills for common areas and facilities, maintenance charges. The Deed of Declaration which was executed provides for fixing of maintenance charges payable every month by all apartment owners.  If there is any delay in making the payment the member was liable to pay the late fee as fixed by the board of Managers. Defendant is a party to the said deed of declaration and therefore he is bound by all the obligations and  to pay the maintenance charges and also the delayed fees. Defendant is a chronic defaulter in the matter of payment of maintenance charges and despite several reminders and requests,has not paid the amount due to the association. Whenever demand was raised, defendant is in the habit of writing defamatory letters making allegations against the association members.    suit  filed by the Defendant  for damages on the ground of defamation  against the then office bearers  was dismissed and  appeal filed against the said decree was also dismissed.  Association had filed a suit for recovery of amount due from the defendant  and the suit was decreed in favour of  association.  Defendant was intimated in writing by the Board of Managers with regard to exact amount due towards the maintenance charges and sinking fund and also towards late fee payable by the defendant.  As per   the Deed of Declaration, the sum assessed form the first charge on the apartment owned by the defendant. Therefore, defendant had no manner of right to avoid liability arising out of the ownership of the apartment. Plaintiff had issued notice explaining the exact amount due and payable by the defendant till the date of notice. Thus, the total amount due and  payable by the defendant as on 01.10.2016 was Rs.6,54,195/- Since the defendant deliberately failed, attempted to make the payment, plaintiff filed the above suit seeking decree to recover the amount.

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Author Info

CA Vijayakumar Shetty
Qualification: CA in Practice
Company: Shetty & Co, Chartered Accountants, Mangalore
Location: Mangalore, Karnataka
Articles Published: 6,941

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