Private limited company in residential apartment
Apartment Owners
(Querist) 19 February 2015
This query is : Resolved
Respected learned experts,
Please help us with the following query. We are a small group of Apartment Owners in a residential apartment complex in T.N. A private limited company started doing business inside our complex by running Serviced Apartments for touring corporate guests. The frequent strangers visiting the complex was an intrusion of the privacy of our gated community and we therefore raised objection to the builder (who was also a business partner in this Serviced Apartment company) who still carries out the maintenance of the complex. Since the builder refused and continued with this business we sent a letter to the corporates who were in agreements with this Serviced Apartment company to use the flats for their employees and guests. We informed the corporates that our building was approved by DTCP for residential use only. The corporates have cancelled the contract with the Serviced Apartment company. But this company is now harassing us. First, they filed a civil suit against the names of the owners who sent the letter to the Corporates, and are claiming that we have done something illegal. Second, they are sending lawyer notices claiming for 1/2 crore as compensation for sending the letter to the corporates. Please advise if the law does not allow citizens to write a letter to corporates and express their concern against commercial activity in their residential gated community.
Adv. Sagar R. Jadhav
(Expert) 19 February 2015
You must contest the matter and defend yourself with supported facts and documents if any. Residential premises cannot be used for commercial purpose.
Apartment Owners
(Querist) 19 February 2015
Thank you Adv. Sagar R.Jadhav. The Serviced Apartments company has filed a civil lawsuit in the District Court against the names of the owners who raised concerns (did not do any non-peaceful objection) and sent the letter to corporates. If Serviced Apartments in a residential complex is an illegal activity, why has the law court accepted this lawsuit against us and has been dragging for almost a year now inspite of our submitting a petition to reject this lawsuit? Is there any provision in the legal system to allow such a lawsuit where the Serviced Apartments company (if illegal commercial activity) can ask for permanent injunction against the select owners who disagree to this activity in their residential complex. They are claiming that majority of the owners have not objected to their activity. But many of these are relatives/business associates/friends of the builder who is a partner in the Serviced Apartments company. So they are all silent and approving their activity. Just because a minority group of owners are disagreeing, will it be legal in the eyes of law? Can they ask for this permanent injunction?
prabhakar singh
(Expert) 19 February 2015
ALL IS DEPENDENT ON TERMS AND PHRASE OF AGREEMENT IN ABSENCE OF THE SAME ANY COMMENT IS INAPPROPRIATE.
Apartment Owners
(Querist) 20 February 2015
Thank you Experts. We will try to copy some clauses from our Sale Deed here. However can someone please clarify if a complex approved for residential by DTCP can be used by the builder to run Serviced Apartments through a company where the builder is also a Director. Will Serviced Apartments come under residential or commercial?
Dr J C Vashista
(Expert) 01 March 2015
Is the complex occupied by the owners after taking over the possession of flats by each member/allottee?
If already occupied even by few of the members of RWA/CHS/Association (as the case may be-which has not been clarified by the anonymous author of the query, you can seek police protection for nuisance, trespass and illegal/unauthorised business being conducted in the premises. Besides this, in case it is a cooperative housing society approach Registrar Cooperative Societies. You can also file a writ petition before the Madras High court.
The terms and conditions of agreement with builder are most important factor to proceed/take a legal recourse.
Contact, consult and engage a local prudent lawyer.
Hemant Agarwal
(Expert) 17 December 2015
INTROSPECT ON THIS:
1. "running Serviced Apartments for touring corporate guests" is "N O T" a commercial activity in any sense. The staying of guests in Apartment, still remains as "residential" and not as "commercial".
(IN Mumbai, such (IF) Guest House will require registration under the local Civic Laws). But this still does not mean that it is a "commercial" activity.
The so called "serviced apartments", STILL remain the "private properties" of the respective Owners of the Apartment, and they are entitled to conduct ANY legally permissible activity inside their own Apartments, without any reference to other Flat owners.
2. However "I F" the Apartments are registered as a entity (eg. RWA or Society or S25 Co.) "ONLY THEN" the registered bye-laws of such RWA /Society, would govern and/or "restrain" such so called "commercial" activity. However here too it CANNOT be "restricted".
Note the legal difference between "restrain" and "restrict".
3. IF the Apartments are NOT registered as a RWA/Society and if few Apartment Owners have complained /Notice to the principal Corporates and IF the "Serviced Apartments for touring corporate guests" is closed down due to such complaint/Notice, THEN such complaint/Notice by few Apartment Owners shall be deemed to be malicious & mischief, having caused loss to the person running Serviced Apartments for touring corporate guests.
4. IF the Apartments are NOT registered as a RWA/Society, THEN the Apartment Owners have no locus standi, as individuals to complaint /Notice to the principal Corporates. BUT such Apartment Owners had all the rights to file private civil complaints in court or with the local civic authorities for redressal of their grievances, which (IF) would be acted upon according to the state laws, without any liability to the complainant Apartment Owners.
Keep Smiling .... Hemant Agarwal
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