Chapter V Association of Apartment Owners and Bye-Laws for Regulation of Affairs of such Association

1. (1) There shall be an Association of apartment owners for the administration of the affairs in relation to the apartments and the property appertaining thereto and for the management of common areas and facilities: Provided that where any area has been demarcated for the construction of several buildings, whether such area is called a block or pocket or by any other name, there shall be a single Association in such demarcated area.
2. (2) Every promoter shall, -
   • (a) in case where ten or more than two-third, whichever is higher, of apartments in a building had been allotted, sold or otherwise transferred before the commencement of this Act, within six months of such commencement; and
   • (b) in any other case, within six months from the date on which ten or more than two-third whichever is higher, of the apartments in the building are allotted, sold or otherwise transferred, make an application in the prescribed form and manner to the Registrar for registration of the Association with the persons, who have been allotted, sold or otherwise transferred apartments, as members. In case, the promoter fails to make an application to the Registrar for registration of Association, the persons who have been allotted, sold or otherwise transferred apartments shall apply for registration of the Association: Provided that an Association of apartment owners registered under the provisions of the Rajasthan Societies Registration Act, 1958 (Act No. 28 of 1958) before the commencement of this Act shall be deemed to be the Association for the purposes of this Act, if its bye-laws are in consonance with the provisions of the model bye-laws prescribed under this Act or they are amended to bring them in consonance with the provisions of the model bye-laws prescribed under this Act within six months from the commencement of this Act.
3. (3) The promoter shall continue to be the member in relation to an apartment not allotted or transferred till such apartment is allotted or transferred to a person who shall become a member of the Association on such allotment or transfer without any further action on his part and be responsible for paying the annual maintenance charge or any other charge decided by the Association : Provided that the registration of any Association shall be without prejudice to any action that may be taken against the promoter for violation of any provision of law in relation to erection of buildings.
4. (4) On receipt of an application under sub-section (2), the Registrar, after satisfying himself that the proposed Association meets the requirements of the provisions of this Act, shall, notwithstanding anything to the contrary contained in the Rajasthan Societies Registration Act, 1958 (Act No. 28 of 1958), register the Association as a society under the Rajasthan Societies Registration Act, 1958 (Act No. 28 of 1958) and the provisions of the said Act shall apply to such Association mutatis mutandis, as far as they are not inconsistent with the provisions of this Act.
5. (5) The Association shall, at its first meeting, make its bye-laws in accordance with the provisions of the model bye-laws prescribed under this Act and no departure from, variation of, addition to, or omission from, the model bye-laws shall be made except with the prior approval of the Competent Authority and no such approval shall be given if, in the opinion of the Competent Authority, such departure, variation, addition or omission will have the effect of altering the basic structure of the model bye-laws.
6. (6) The bye-laws framed under sub-section (5) may provide for the following, among other matters, namely:-
   • (a) composition of the governing body;
   • (b) election, from among apartment owners, of the members of the governing body by the members of the Association, with provision that one-third of the members of the governing body shall retire annually;
   • (c) powers and duties of the governing body;
   • (d) honorarium, if any, of the members of the governing body;
   • (e) method of removal from office of the members of the governing body;
   • (f) method of calling meetings of the Association and of the governing body and the number of members of the Association or the governing body who shall constitute a quorum for such meetings;
   • (g) election of a President of the Association from among the members of the Association, who shall preside over the meetings of the Association and of the governing body;
   • (h) election of a Secretary of the Association from among members of Association, who shall keep two separate minutes books, one for the Association and the other for the governing body, pages of each of which shall be consecutively numbered and authenticated by the President of the Association, and shall record in the respective minutes books the resolutions adopted by the Association or the governing body, as the case may be;
     • (i) election of a treasurer from among the members of the Association, who shall keep the financial records and account books of the Association;
   • (j) maintenance, repair and replacement of the common areas and facilities and payment therefor;
   • (k) manner of collecting from the apartment owners or any other occupants of apartments, their share of common expenses;
   • (l) engagement and removal of persons employed for administration, management, maintenance, repair and replacement of the property and the common areas and facilities; (m)restrictions with regard to the use and maintenance of the apartments and the use of the common areas and facilities, as may be necessary to prevent unreasonable interference in the use of each apartment and of the common areas and facilities by the several apartment owners;
   • (n) any matter which may be required by the State Government to be provided for in the model bye-laws for the proper or better administration of the property; and
   • (o) any other matter as may be required to be, or may be provided for in the model bye-laws.
7. (7) The bye-laws framed under sub-section (5) may also contain provisions, not inconsistent with the provisions of this Act,-
   • (a) enabling the governing body subject to the building regulations to retain certain areas of the building for commercial purposes and to grant lease of the areas so retained, and to apply proceeds of such lease for reduction of the common expenses for maintaining the building and the common areas and facilities, and if any surplus is left after meeting such expenses to distribute such surplus among the apartment owners as income;
   • (b) relating to the audit of the accounts of the Association and the administration of the property;
   • (c) specifying the time at which and the manner in which annual general meetings and special meetings of the Association shall be held and conducted;
   • (d) specifying the time at which and the manner in which the annual report relating to the activities of the Association shall be submitted;
   • (e) specifying the manner in which the income derived and expenditure incurred by the Association shall be dealt with, or, as the case may be, accounted for.

1. (1) The Association-
   • (a) shall have, if requested so to do by a mortgagee having a first mortgage covering an apartment, the authority to, and
   • (b) shall, if required so to do by the bye-laws or by a majority of the apartment owners, obtain insurance for the property against loss or damage by fire or other hazards under such terms and for such amounts as shall be so requested or required.
2. (2) Such insurance coverage shall be written on the property in the name of the Association as trustee for each of the apartment owners in the percentages specified in the bye-laws.
3. (3) The premia payable in respect of every such insurance shall be included in common expenses.
4. (4) The provisions of sub-sections (1) to (3) shall be without prejudice to the right of each of the apartment owner to insure his own apartment for his benefit.

If, within sixty days of the date of damage to or destruction of all, or part of any property, or within such further time as the Competent Authority may, having regard to the circumstances of the case, allow, the Association does not proceed to repair, reconstruct or re-build such property, then, and in that event,-

1. (a) the property shall be deemed to be owned in common by the apartment owners;
2. (b) the undivided interest in the property owned in common, which shall appertain to each apartment owner, shall be the percentage of the undivided interest previously owned by such owner in the common areas and facilities;
3. (c) any encumbrances affecting any of the apartments shall be deemed to be transferred in accordance with the existing priority to the percentage of the undivided interest of the apartment owner in the property;
4. (d) the property shall be subject to an action for partition at the suit of any apartment owner, in which event, the net proceeds of sale together with the net proceeds of the insurance on the property, if any, shall be considered as one fund and shall be divided amongst all the apartment owners in the percentage equal to the percentage of undivided interest owned by each apartment owner in the property after paying out, all the respective shares of the apartment owners to the extent sufficient for the purpose and all charges on the undivided interest in the property owned by each apartment owner.

1. (1) Without prejudice to the rights of any apartment owner, action may be brought by the Association, in either case in the discretion of the Association, on behalf of two or more of the apartment owners as their respective interest may appear, with respect to any cause of action relating to the common areas and facilities or more than one apartment.
2. (2) The service of process on two or more apartment owners in any action relating to the common areas and facilities or more than one apartment may be made on the person, designated in the bye-laws to receive service of process.