The Karnataka Ownership Flats Act Does Not Apply After An Apartment Is Subject To The Karnataka Apartment Ownership Act, States The High Court

NAME OF THE CASE AND CORAM

• NAME: Shantharam Prabhu and Mr. K. Dayanand Rai
• CORAM: Justice Suraj Govindaraj
• CASE NO: Crp No.96 Of 2021

KEY TAKEAWAYS

• Once an apartment is subject to the Karnataka Apartment Ownership Act, the Karnataka Ownership Flats Act does not apply.
• The KAOA applies to the transfer of the flats as well as all matters concerning the apartments, including servicing.
• The apartment owners will be bound by the provisions of KAOA and the Declaration and Deed of Unit submitted there under once the apartment has been submitted to KAOA. As a result, KOFA isn't applicable.

CASE BACKGROUND

• Complainant Shantharam Prabhu and others, owners of flat number 403 in the Maurishka Park "B" apartment building, had filed a protest with the court against the orders of Judge II Supplement's decision and decree of April 4, 2019. To the extent that the claim in said action has been dismissed by permitting IANo.3 filed by the defendant (Association), in which the association states that the KOFA, which has been invoked by the applicant, is not applicable to the extent that the KAOA will apply.
• Also, to dismiss the decision of the II Additional Senior Civil Judge & CJM, Mangaluru, D.K., dated 04.04.2019, dismissing the Plaintiffs' I.A.No.2 petition for restoration of electrical service to the Plaintiffs' Apartment.
• After hearing the parties and evaluating the application filed under Order VII Rule 11(a) and (d) of the CPC, the trial court granted it and rejected Plaintiffs' claim for an injunction filed under Order XXXIX Rule 1 and 2 of the CPC.

CASE PROCEEDINGS

• Both Acts would apply in distinct time periods, according to Justice Suraj Govindaraj. KOFA would apply until the Apartment is submitted to the requirements of KAOA, and if the Apartment is just not treated according to KAOA, KOFA would remain in effect. KOFA would no longer be applicable after an apartment, building, or property is treated with the terms of KAOA by the signature of a Declaration Deed of Apartment and Bye Laws.
• Only an apartment utilised for residential purposes would be covered by KAOA. A flat or apartment used as an office, showroom, shop, or godown (including garage) cannot be subjected to KAOA and will always be governed by KOFA, according to the court.
• The court also stated that KOFA would apply to the relationship and/or disagreement between the purchaser and the promoter when an apartment is proposed to be built or is under development and agreements are made. If the Apartment is not subject to KAOA, KOFA will continue to apply. Once a flat is subject to KAOA, KOFA will no longer in application, and only the KAOA, Declaration, Deed of Apartment, and bye-laws will in effect.
• Furthermore, the court concluded that the Declaration, Deed of Apartment, and/or bye-laws would not need to be registered with the Registrar of Co-operative Societies, If KAOA applies to the property. If there are any procedures, they must be brought before a Civil Court of competent jurisdiction."
• If a Co-operative Society or a Corporation is established to handle the property, and the provisions of KOFA are applied, the actions must be brought in accordance with Section 13(5) before a Small Causes Court, or in the unavailability of a Small Causes Court, before a Civil Court of competent jurisdiction.

CASE RELEVANCE

• "After an flat, Construction, Property is treated with the provisions of the Karnataka Apartment Ownership Act (KAOA) 1972, by execution and operation of Declaration, Deed of Apartment, and Bye-Laws, the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1972, would come to an end to be applicable," the Karnataka High Court declared.

Hope you enjoyed reading this. You may now be able to answer the following questions, let us know in the comments section

• Was is correct of Additional Senior Civil Judge & CJM, Mangaluru, to dismiss the application filed by the petitioner?
• What are your views on the Karnataka Ownership Act?