Disposed

Sri. Pawan Verma v. State of Karnataka

Karnataka HC29 Nov 2023WP/18900/2022

Case brief

AI extract

What is this about?

The High Court examined whether a welfare association collecting maintenance charges could be registered under the Karnataka Societies Registration Act. Citing a Division Bench order, the Court held that such objects fall under the Apartments Ownership Act. The petitioner's petition was disposed of pending the association's compliance with the directive to register under the 1972 Act.

What did the court decide?

Welfare Association directed to register under Karnataka Apartments Ownership Act, 1972 within two months; collection of amounts before registration will be unauthorized.

Sri. Pawan Verma Vs State of Karnataka — Cooperative Societies | Karnataka HC (2023)

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1 - NC: 2023:KHC:43199 WP No. 18900 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 29^TH DAY OF NOVEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 18900 OF 2022 (GM-KSR)

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BETWEEN:

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SRI. PAWAN VERMA S/O LATE SRI RAM SWAROOP VERMA AGED 47 YEARS RESIDING AT FLAT NO.E-008 PRAKRUTHI SOLITAIRE APARTMENTS KAMMASANDRA VILLAGE ELECTRONIC CITY PHASE 2 ANEKAL TALUK BENGALURU – 560 010.

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…PETITIONER

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(BY SRI. SAMEER SHARMA., ADVOCATE)

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AND:

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Digitally signed by PADMAVATHI B K Location: HIGH COURT OF KARNATAKA

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STATE OF KARNATAKA REPRESENTED BY THE REGISTRAR DEPARTMENT OF CO-OPERATIVE SOCIETIES NO.1, ALI ASKER ROAD BENGALURU – 560 052.

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DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES ZONE-3, 2^ND FLOOR SAHAKARA SOUDHA NO.146, 8^TH CROSS, 3^RD MAIN ROAD MARGOSA ROAD

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2 - NC: 2023:KHC:43199 WP No. 18900 of 2022

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MALLESHWARAM

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BENGALURU – 560 003.

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THE DISTRICT REGISTRAR OFFICE OF THE REGISTRAR OF SOCIEITIES ZONE 3, 2^ND FLOOR SAHAKARA SOUDHA NO.146, 8^TH CROSS 3^RD MAIN ROAD MARGOSA ROAD MALLESHWARAM BENGALURU – 560 003.

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PRAKRUTHI SOLITAIRE RESIDENTS’ WELFARE ASSOCIATION A SOCIETY REGISTERED UNDER THE KARNATAKA SOCIETIES REGISTRATION ACT, 1960 HAVING OFFICE AT PRAKRUTHI SOLITAIRE APARTMENTS KAMMASANDRA VILLAGE ELECTRONIC CITY PHASE 2, ANEKAL TALUK BENGALURU – 560 010 REPRESENTED BY ITS PRESIDENT.

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…RESPONDENTS

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(BY SRI.KIRAN KUMAR, HCGP FOR R1 TO R3; R4-SERVED)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR RECORDS FROM R-1 AND 3 RELATING TO THE REGISTRATION OF THE R-4 UNDER THE PROVISIONS OF THE KARNATAKA SOCIETIES REGISTRATION ACT, 1960; QUASH THE CERTIFICATE OF REGISTRATION BEARING NO. DRB3 / SOR / 81 / 2020-21 DTD. 23.06.2020 ISSUED BY THE R-3 IN FAVOUR OF R-4 (ANNX-A) BY WAY OF WHICH R-4 HAS BEEN

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3 - NC: 2023:KHC:43199 WP No. 18900 of 2022

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GRANTED REGISTRATION AS A SOCIETY UNDER THE PROVISIONS OF THE KARNATAKA SOCIETIES REGISTRATION ACT, 1960.

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THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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This petition calls in question the certificate of registration of respondent No.4 – Welfare Association of the apartment, in which the petitioner is residing, by which, respondent No.4 seeks maintenance from the hands of the residents of the apartments, notwithstanding the fact that the Welfare Association is registered under the Karnataka Societies Registration Act, 1960 (‘the Act, 1960 for short).

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Heard Sri Sameer Sharma, learned counsel for the petitioner and Sri Kiran Kumar, learned High Court Government Pleader for respondent Nos.1 to 3. Notice upon respondent No.4 though served, unrepresented.

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The learned counsel appearing for the parties would accept the fact that the issue is covered by an order passed by the Division Bench, on an identical issue in W.A.No.974/2019, disposed on 06.11.2019, wherein it has held as follows:

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4 - NC: 2023:KHC:43199 WP No. 18900 of 2022

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“4. The submission of the learned counsel appearing for the appellant is that the objects of the appellant Association will fall in the categories covered by Section 3 of the said Act of 1960. He pointed out that the dominant purpose or object of forming the said Association is to administer, maintain and run the buildings and apartments constructed by the aforesaid developer. He submitted that in fact, the appellant has been collecting maintenance charges for maintaining the residential complex from a majority of the apartment owners, barring a few of the owners of the apartments who are opposing the appellant. He submitted that there is nothing wrong with the registration of the appellant Association under the said Act of 1960 and that if the impugned order is maintained, the members who have not paid the maintenance will go scot-free. Without prejudice to his contentions, he submitted that the first to seventh respondents must co-operate for formation of the Association as contemplated by the said Act of 1972.

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5. We have given careful consideration to the submissions.

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6. Section 3 of the said Act of 1960 reads thus:

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“3. Societies to which the Act applies.-

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The following societies may be registered under this Act:—

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Societies established for:—

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(a) the promotion of charity;

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(b) the promotion of education, science, literature, or the fine arts;

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(c) the promotion of sports;

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(d) the instruction and the diffusion of knowledge relating to commerce or industry or of any other useful knowledge;

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(e) the diffusion of political education;

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(f) the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or of public museums and

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galleries of painting and other works of art;

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[(ff) the promotion of conservation and proper use of natural resources and scarce infrastructural facilities like land, power, water, forest and such other resources and infrastructural facilities, as may be notified by the State Government from time to time.]

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(g) the collection of natural history, mechanical and philosophical inventions Or designs and

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Which intend to apply their profits, if any, or other income in promoting their objects and prohibit the payment of any dividend or distribution of any income or profits among their members.”

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Even according to the case of the appellant, the dominant object for the formation of the appellant Association is to administer, maintain and run the building and apartments. Clauses 5.1 and 5.2 are, even according to the learned counsel for the appellant, the dominant objects of the Association, and they read thus:

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5.1 To administer, maintain and run the building and apartments known as VDB Celadon No.23/3, 23/4, 26/1, Shivanahalli Hobli, Jakkur Road, Yelahanka, Bangalore – 560064.

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5.2 To Carry on the Day-to-day work relating to all aspects of the building, apartments, common areas, common facilities and common services therein;

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7. On a plain reading of Section 3 of the said Act of 1960, it is clear that the object of administering, maintaining and running the buildings and apartments and to carry on the day-to-day work relating to all the aspects of the buildings/apartments, common areas and common facilities will not be covered by any of the clauses (a) to (g) of Section 3 of the said Act of 1960. Even according to the case of the appellant, Clauses 5.1 and 5.2 are its dominant objects. In fact, on the earlier date, we had granted time to the appellant to take instructions whether it proposes to apply for deletion of certain objects which are a part of the bye-laws of the appellant Association.

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8. Today, the learned counsel appearing for the appellant, on instructions, states that if the said two objects are deleted, the registration of the appellant under the said Act of 1960 cannot be maintained.

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9. Thus, the main object of the appellant was to do something which could have been done by an Association formed in accordance with the provisions of the said Act of 1972. In fact, the documents of sale executed by the developer in respect of the flat/apartment contain a stipulation that the purchasers of the flats shall form an Association / Society / Condominium in accordance with the provisions of the said Act of 1972. That is how the learned Single Judge by modifying the impugned order dated 15^th February, 2019, has clarified that steps can be taken to register the appellant Association under the provisions of the said Act of 1972.

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10. Thus, after having perused the dominant objects of the appellant Association, we find that the said objects are not covered by Section 3 of the said Act of 1960, and therefore, the appellant could not have been registered under the said Act. We find no error in the view taken by the learned Single Judge when he had proceeded to cancel registration of the appellant.

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11. As observed by the learned Single Judge, the impugned order as well as this order will not prevent the persons who are members of the appellant Association from taking steps for formation and registration of an Association/Condominium under the provisions of the said Act of 1972 inasmuch as the sale deeds executed in favour of the apartment owners contemplate formation of such Association.

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12. Subject to what is observed above, the writ appeals are dismissed. All pending applications do not survive for consideration and are accordingly disposed of.”

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In the light of the order passed by the Division Bench ( supra) , the collection of the maintenance or in any other mode of such collections by the Welfare Association would run counter to the judgment of the Division Bench. Therefore, reserving liberty to respondent No.4 – Welfare Association to

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NC: 2023:KHC:43199 WP No. 18900 of 2022

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seek registration under the Karnataka Apartments Ownership Act of 1972 (‘the Act, 1972’ for short) as held by the Division Bench, this petition stands disposed.

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In the light of respondent No.4 - Welfare Association registered under the Act, 1960, way back in the year 2016 and payment being made by the residents of the apartment complex to the Welfare Associations, I deem it appropriate to direct the Welfare Associations to register under the Act, 1972, within two months from today.

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In the event, respondent No.4 - Welfare Association fail to register under the Act, 1972, any amount that it would collect, would be unauthorised.

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On the aforesaid observations, the petition stand disposed.

Ordered accordingly.

Sd/JUDGE

NVJ

List No.: 1 Sl No.: 95

Sri. Pawan Verma v. State of Karnataka

Case brief

What is this about?

What did the court decide?

Sri. Pawan Verma v. State of Karnataka

Case brief

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