Notes of Cooperative Law L.L.B Third Years
Notes of Cooperative Law L.L.B Third Years
Notes of Cooperative Law L.L.B Third Years
Notes-sub:-co-operative law.
Class:-BSL,LLB-5th year.
Dt.15/05/2020,
U/S 2- Definition.
(a) "Competent Authority" means a Competent Authority appointed under section (5A)
(a-1) "Flat" means a separate and self-contained set of premises used or intended to be used
for residence, or office, show-room or shop or godown [or for carrying on any industry or
business] (and includes a garage), the premises forming part of a building [and includes an
apartment.
Explanation. - Notwithstanding that provision is made for sanitary, washing, bathing or other
conveniences as common to two or more sets of premises, the premises shall be deemed to be
separate
1) Flat
All the criteria of this definition must be fulfilled to be able to apply the provisions of MOFA,
and it is a misconception that it applies only to residential premises.
(c) "promoter" means a person and includes a partnership firm or a body or association of
persons, whether registered or not] who constructs or causes to be constructed a block or
building of flats, [or apartments] for the purpose of selling some or all of them to other
persons, or to a company, co-operative society or other association of persons, and includes
his assignees; and where the person who builds and the person who sells are different
persons, the term includes both;
PROMOTER-
*A person,
*A Partnership Firm,
* For selling all or any of them to a Company, Co-operative Society, Association of Persons
All the criteria of this definition must be fulfilled to construct a promoter, and the term also
includes his assigns and thus, if a person assigns his interests in the land to another person
then the assignee would become a promoter. If the builder and the person selling the flats are
different, then both of them are promoters. It happens many times that the builder who builds
the flats gives the contract to an advertising agency to promote the flats than in this case both
of them are promoters.
(d) "Registrar" means the Registrar as defined in the Maharashtra Co-operative Societies Act,
1960, (Maharashtra XXIV of 1961) or, as the case may be, in the Companies Act, 1956;
(e) "to construct a block or building of flats [or apartments]" includes to convert a building or
part thereof into flats [or apartments];
[(f) the expressions, "apartment" and "apartment owner" shall have the meanings,
respectively assigned to them in the Maharashtra Apartment Ownership Act, 1970.]
(2) A promoter, who constructs or intends to construct such block or building of flats, shall-
(a) make full and true disclosure of the nature of his title to the land on which the flats are
constructed, or are to be constructed; such title to the land as aforesaid having been duly
certified by an Attorney-ab-law, or by an Advocate of not less than three years standing, [and
having been duly entered in the Property card or extract of Village Forms VI or VII and XII
or any other relevant revenue record;].
(b) make full and true disclosure of all encumbrances on such land, including any right, title,
interest or claim of any party in or over such land;
(c) give inspection on seven day's notice or demand, of the plans and specifications of the
building built or to be built on the land; such plans and specifications, having been approved
by the local authority which he is required so to do under any law for the time being in force;
(d) disclose the nature of fixtures, fittings and amenities (including the provision for one or
more lifts) provided or to be provided;
(e) disclose on reasonable notice or demand if the promoter is himself the builder, the
prescribed particulars as respect the design and the materials to be used in the construction of
the building, and if the promoter is not himself the builder disclose, on such notice or
demand, all agreements (and where there is no written agreement, the details of all
agreements) entered into by him with the architects and contractors regarding the design,
materials and construction of the buildings;
(f) specify in writing the date by which possession of the flat is to be handed over (and he
shall hand over such possession accordingly);
(g) prepare and maintain a list of flats with their numbers already taken or agreed to be taken,
and the names and addresses of the parties, and the price charged or agreed to be charged
therefor, and the terms and conditions if any on which the flats are taken or agreed to be
taken;
(h) state in writing, the precise nature of the organisation of persons to be constituted and to
which title is to be passed, and the terms and conditions governing such organisation of
persons who have taken or are to take the flats;
(i) not allow persons to enter into possession until a completion certificate where such
certificate is required to be given under any law, is duly given by the local authority (and no
person shall take possession of a flat until such completion certificate has been duly given by
the local authority);
(j) make a full and true disclosure of all outgoings (including ground rent if any, municipal or
other local taxes, taxes on income, water charges and electricity charges, revenue assessment,
interest on any mortgage or other encumbrances, if any);
(k) make a full and true disclosure of such other information and documents in such manner
as may be prescribed; and give on demand true copies of such of the documents referred to in
any of the clauses of this sub-section as may be prescribed at a reasonable charge therefor;
(l) display or keep all the documents, plans or specifications (or copies thereof) referred to in
clauses (a), (b) and (c), at the site and permit inspection thereof to persons intending to take
or taking one or more flats;
(m) when the flats are advertised for sale, disclose inter alia in the advertisement the
following particulars, namely
(i) the extent of the carpet area of the flat including the area of the balconies which should be
shown separately;
(ii) the price of the flat including the proportionate price of the common areas and facilities
which should be shown separately, to be paid by the purchaser of flat; and the intervals at
which the instalments thereof may be paid;
(iii) the nature, extent and description of the common areas and facilities; and
(iv) the nature, extent and description of limited common areas and facilities, if any.
[(n) sell flat on the basis of the carpet area only:
Provided that, the promoter may separately charge for the common areas and facilities in
proportion 'to the carpet area of the flat'.
Explanation. - For the purposes of this clause, the carpet area of the flat shall include the area
of the balcony of such flat.]
Provided that, if the promoter fail within the prescribed period to submit an
application to the Registrar for registration of society in the manner provided in the
Maharashtra Co-operative Societies Act, 1960, the Competent Authority may, upon receiving
an application from the persons who have taken flats from the said promoter, direct the
District Deputy Registrar, Deputy Registrar or, as the case may be, Assistant Registrar
concerned, to register the society:
Provided further that, no such direction to register any society under the preceding proviso
shall be given to the District Deputy Registrar, Deputy Registrar or, as the case may be,
Assistant Registrar, by the Competent Authority without first verifying authenticity of the
applicants request and giving the concerned promoter a reasonable opportunity of being
heard.
(1) Every person who has executed an agreement to take a flat shall pay at the proper time
and place the price, his proportionate share of the municipal taxes, water and electricity
charges, ground rent (if any) and other public charges in accordance with his agreement with
the promoter; and where a co-operative society or company of persons taking the flats is to be
constituted, co-operate in the formation of such society or company, as the case may be.
(2) Any person who has executed an agreement to take a flat and who, without reasonable
excuse, fails to comply with or contravenes sub-section (1) shall, on conviction, be punished
with fine which may extend to two thousand rupees.
(1) Any promoter who, without reasonable excuse, fails to comply with or contravenes, the
provisions of section 3, 4, 5 [save as provided in sub-section (2) of this section], 10 or 11
shall, on conviction, be punished with imprisonment for a term which may extend to three
years or with fine, or with both.
(2) Any promoter who commits criminal breach of trust of any amount advanced or deposited
with him for the purposes mentioned in section 5 shall, on conviction, be punished with
imprisonment for a term which may extend to five years, or with fine, or with both.
(3) Any promoter who, without reasonable excuse, fails to comply with or, contravenes, any
other provision of this Act or of any rule made thereunder, shall, if no other penalty is
expressly provided for the offence, be punished, on conviction, [with imprisonment for a term
which shall not be less than six months but which may extend to one year or with fine which
shall not be less than ten thousand rupees but which may extend to fifty thousand rupees or
with both.]
(4) When any promoter is convicted of any offence under this Act, except offence under
Section 12A, such promoter shall be disqualified from undertaking construction of flats for a
period of five years from the date of such conviction. However, such disqualification shall
not affect the permission for construction of flats already granted before incurring such
disqualification and shall also not debar the promoter from seeking or being granted any
additional requisite permissions which may be required from the concerned local authorities
for completion of constructions already undertaken by him.
(5) The Competent Authority shall, on such conviction of a promoter under this Act, subject
to the orders of the appellate court, if any, or after the 'expiry of the appeal period, forward
the name of the convicted promoter to the local authorities under his jurisdiction, with a
direction that such promoter shall not be granted permission under the' relevant law for
undertaking any construction of flats during the period of such disqualification, specifically
mentioning such period.
(6) On receiving such intimation from the Competent Authority, notwithstanding anything
contained in any other law for the time being in force, the concerned local authority shall not
grant such promoter any permission or licence under the relevant law for construction of flats
for a period for which the promoter is so disqualified.]
(1) Any promoter who, without reasonable excuse, fails to comply with or contravenes, the
provisions of section 3, 4, 5 [save as provided in sub-section (2) of this section], 10 or 11
shall, on conviction, be punished with imprisonment for a term which may extend to three
years or with fine, or with both.
(2) Any promoter who commits criminal breach of trust of any amount advanced or deposited
with him for the purposes mentioned in section 5 shall, on conviction, be punished with
imprisonment for a term which may extend to five years, or with fine, or with both.
(3) Any promoter who, without reasonable excuse, fails to comply with or, contravenes, any
other provision of this Act or of any rule made thereunder, shall, if no other penalty is
expressly provided for the offence, be punished, on conviction, [with imprisonment for a term
which shall not be less than six months but which may extend to one year or with fine which
shall not be less than ten thousand rupees but which may extend to fifty thousand rupees or
with both.
(4) When any promoter is convicted of any offence under this Act, except offence under
Section 12A, such promoter shall be disqualified from undertaking construction of flats for a
period of five years from the date of such conviction. However, such disqualification shall
not affect the permission for construction of flats already granted before incurring such
disqualification and shall also not debar the promoter from seeking or being granted any
additional requisite permissions which may be required from the concerned local authorities
for completion of constructions already undertaken by him.
(5) The Competent Authority shall, on such conviction of a promoter under this Act, subject
to the orders of the appellate court, if any, or after the 'expiry of the appeal period, forward
the name of the convicted promoter to the local authorities under his jurisdiction, with a
direction that such promoter shall not be granted permission under the' relevant law for
undertaking any construction of flats during the period of such disqualification, specifically
mentioning such period.
(6) On receiving such intimation from the Competent Authority, notwithstanding anything
contained in any other law for the time being in force, the concerned local authority shall not
grant such promoter any permission or licence under the relevant law for construction of flats
for a period for which the promoter is so disqualified.
(a) Apartment.. -
(b) As per the Maharashtra Apartment Ownership Act 1970, apartment means any part of
the property intended for any type of independent use, including one or more rooms
or enclosed spaces located on one or more floors (or part or parts thereof) in a
building, intended to be used for residence, office, practice of any profession, or for
carrying on any occupation, trade or business or for any other type of independent use
and with a direct exit to public street, road or highway or to a common area leading to
such street, road or highway.
(c) "apartment owner"
(d) means the person or persons owning an apartment and an undivided interest in
the common areas and facilities in the percentage specified and established in
the Declaration;
(c) "apartment number."
means the number, letter, or combination thereof designating the apartment in the
Declaration;
(e) "Association of Apartment Owners."
(f) means all of the.apartment owners acting as a group in accordance with the bye-
laws and Declaration;
(e) "building."
Means a building containing five or more apartments, or two or more buildings, each
containing two or more apartments, with a total of five or more apartments for all such
buildings, and comprising a part of the property;
(g) "common areas and facilities.",
(h) unless otherwise provided in the Declaration or lawful amendments thereto,
means-
(1) the land on which the building is located;
(2) the foundations, columns, girders, beams, supports, main walls, roofs, halls,
corridors, lobbies, stairs, stair-ways, fire-escapes and entrances and exits of the
buildings;
(3) the basements, cellars, yards, gardens, parking areas and storage spaces;
(4) the premises for the lodging of janitors or persons employed for the
management of the property;
(5) installations of central services, such as power, light, gas, hot and cold water,
heating, refrigeration, air-conditioning and incinerating;
(6) the elevators, tanks, pumps, motors, fans, compressors, ducts and in general all
apparatus and installations existing for common use;
(7) such community and commercial facilities as may be provided in the
Declaration; and
(8) all other parts of the property necessary or convenient to its existence,
maintenance and safety, or normally in common use;
(g) "common expenses" means,-
(1) all sums lawfully assessed against the apartment owners by the Association
of Apartments Owners;
(2) expenses of administration, maintenance, repair or replacement of the
common areas and facilities;
(3) expenses agreed upon as common expenses by the Association of
Apartment Owners;
(4) expenses declared as common expenses by the provisions of this Act, or by
the Declaration or the bye-laws;
(h) "common profits."
means the balance of all income, rents, profits and revenues from the common areas
and facilities remaining after the deduction of the common expenses;
[(i) "Competent authority."-
(1) in relation to buildings constructed or to be constructed by the Housing and
Area Development Authority established under section 3, or a Housing and Area
Development Board established under section 18 of the Maharashtra Housing
and Area Development Act, 1976, or by a company, means the Deputy Chief
Engineer or the officer referred to in sub-section (2) of section 7 of the
Maharashtra Ownership Flats (Regulation of the promotion of construction, sale,
management and transfer) Act, 1963; and
(2) in any other case, means the Registrar of Co-operative Societies as defined
in the Maharashtra Co-operative Societies Act, 1960;]
(j) "Declaration."
means the instrument by which the property is submitted to the provisions of this
Act, [as provided by section 2], and such Declaration as from time to time may be
lawfully amended.
(m) "joint family."
means an undivided Hindu family, and in the case of other persons, a group or unit, the
members of which are by custom joint in possession or residence;
(n) "limited common areas and facilities."
means those common areas and facilities designated in the Declaration as reserved
for use of certain apartment or apartments to the exclusion of the other
apartments;
(o) "majority" or "majority of apartment owners."
means the apartment owners with 51 per cent, or more of the votes in accordance
with the percentages assigned in the Declaration to the apartments for voting
purposes;
(p) "person."
includes a joint family;
(q) "prescribed."
means prescribed by rules made under this Act;
(r) "property" means the land, the building, all improvements and structures
thereon, and all easements, rights and appurtenances belonging thereto, and all
articles of personal property intended for use in connection therewith, which have
been, or are intended to be, submitted to the provisions of this Act.
Each apartment owner shall comply strictly with the bye-laws and with the
administrative rules and regulations adopted pursuant thereto, as either of the same may be
lawfully amended from time to time, and with the convenants, conditions and restrictions set
forth in the Declaration or in the Deed to his apartment. Failure to comply with any of the
same shall be a ground for an action to recover sums due, for damages or injunctive relief or
both maintainable by the Manager or Board of Managers on behalf of the Association of
Apartment Owners, or, in a proper case, by an aggrieved apartment owner
Memorandum Of Association
Memorandum of Association contains the name and objectives of the society,
the address of the registered office of the society, names, occupations, and addresses of the
governing body, as well as the names, addresses, and signatures of people subscribing to the
Memorandum of Association.
Common Areas And Facilities(u/s.6)
Common Areas and Facilities constitutes the land on which the multi-storied
apartment building is located, the gardens, basements, cellars, parking areas, and any other
such creations, and all the structural elements like lobbies, corridors, fire escapes, and beams
and columns.
Common Expenses
Common expenses are sums of money, lawfully assessed against the apartment
owners, which go into administration, repair, and maintenance or for modifying common
areas and facilities.
Declaration or the bye-laws shall be filed in the office of the competent authority
ownership rule1972.
(1) The Declaration and all amendments thereto and the Deed of Apartment in respect of
each apartment and the floor plans of the buildings referred to in subsection (2) shall all be
registered under the [Registration Act, 1908].
(2) Simultaneously with the registration of the Declaration there shall be filed alongwith it a
set of the floor plans of the building showing the layout, location, apartment numbers and
dimensions of the apartments stating the name of the building or that it has no name, and
bearing the verified statement of an architect certifying that it is an accurate copy of portions
of the plans of the building as filed with and approved by the local authority within whose
jurisdiction the building is located. If such plans do not include a verified statement by such
architect that such plans fully and accurately depict the layout, location, apartment numbers
and dimensions of the apartments as built, there shall be recorded prior to the first
conveyance of any apartment, an amendment to the Declaration to which shall be attached a
verified statement of an architect certifying that the plans theretofore filed, or being filed
simultaneously with such amendment, fully and accurately depict the layout, location,
apartment number and dimensions of the apartment as built.
(3) In all registration offices a book called "Register of Declarations and Deeds of
Apartments under the Maharashtra Apartment Ownership Act, 1970" and Index relating
thereto shall be kept. The book and the Index shall be kept in such form and shall contain
such particulars as the State Government may prescribe.
(4) It shall be the duty of every Manager or Board of Managers to send to the Sub-Registrar
of the Sub-district in which the property containing the apartments situate, or if there is no
Sub-Registrar for the area, to the Registrar of the district in which such property is situate a
certified copy of the Declaration and Deed of Apartment made in respect of every apartment
contained in the building forming part of the property together with a memorandum
containing such particulars as the State Government may prescribe.
(5) The Sub-Registrar, or as the case may be, the Registrar shall register the Declaration
alongwith floor plans of the building and the Deed of Apartment in the Register of
Declarations and Deeds of Apartments under the Maharashtra Apartment Ownership Act,
1970 and shall also enter particulars in the Index kept under subsection (3). Any person
acquiring any apartment of any apartment owner shall be deemed to have notice of the
Declaration and of the Deed of Apartment as from the date of its registration under this
section.
(6) Except as provided in this section, the provisions of the [Registration Act, 1908],
shall mutatis mutandis apply to the registration of such Declarations and Deeds of
Apartments and the words and expressions used in this section but not defined in this Act,
shall have the meanings assigned to them in the [Registration Act, 1908].
Rule-7. Contents of Deeds of Apartment. - (1) The first Deed of Apartment shall be
accompanied by a copy of the relevant floor plans of the building filed under subsection (2)
of section 13 and by a certificate of an architect certifying that the said floor plan shows the
number and dimensions of the apartment being conveyed and of the immediately adjoining
apartments and that the said floor plan fully and accurately depicts the lay-out of the
apartment, its location, dimensions, approximate area, main entrance, common areas and
facilities and limited common areas and facilities, if any, to which it has access, as built.