(1)If within sixty days of the date of damage or destruction of whole, or any part of the property, or within such further time as the Competent Authority may, having regard to the circumstances of the case, allow and the association of allottees does not proceed to repair, reconstruct or rebuild, then in that event,– Insurance.
Verification of structural stability of old building.
Disposition of Property, destruction or damage.
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(a) the property shall be deemed to be owned in common by the apartment owners;
(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;
(c) any encumbrances affecting any of the apartments shall be deemed to be transferred in accordance with the existing priority to the undivided interest of the apartment owner in the property as provided therein; and
(d) the property shall be subject to partition in a suit filed by 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 among all the apartment owners in equal to the percentage of undivided interest of 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.
(2) In the event of damage caused to any service or utility line of an apartment or of any other sort of damage that may be a cause of concern to other apartment owners or to the association of allottees, the owner of the apartment where such damage is caused shall repair or rectify or replace or make good such event within five days in case of minor repair and within one month in case of major repair.
(3)The magnitude of damage shall be as mutually agreeable between the owners of the apartment and in case of any difference of opinion the decision of the Executive Committee of the association of allottees shall stand final.
(4) The liability of making good the damage lies with the apartment owner where the damage has occurred and if the apartment owner fails to rectify the damage within the time prescribed in sub-section (2), the Executive Committee of the association of allottees shall proceed to rectify the same immediately and the cost of same shall be recovered from the owner of the apartment where the damage had occurred.
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CHAPTER VI COMPETENT AUTHORITY AND APPELLATE AUTHORITY
23.(1)The State Government may, by notification, appoint one or more officers, not below the rank of Deputy Collector, as the Competent Authority to exercise the powers conferred on it and to perform the functions within the local limit as assigned to it under this Act.
(2) The Competent Authority shall have the following powers, namely:–
(a) on a complaint, or suo motu, call upon any promoter or association of allottees or apartment owner to furnish in writing such information and explanation, and if he considers necessary, hold an inquiry or direct any person to hold an inquiry into the affairs of the project including constitution, working and financial condition of the association of allottees;
(b) at any time, but at reasonable hours, without notice enter into any apartment and property appurtenant thereto in order to satisfy himself as to whether any provision of this Act or the bye-laws has been complied or not;
(c) to issue direction and pass orders consistent with the provisions of this Act and rules;
(d) to hear appeal preferred under sub-section (2) of Section 21;and
(e) to exercise such powers as may be prescribed.
(3) The Competent Authority shall have the following functions, namely:―
(a) register the association of allottees along with bye-laws on receipt of such application from the promoters, allottees or apartment owners, as the case may be;
(b) scrutinize and maintain register of the declarations as per section 9 including amendment thereto;
(c) approve the amendment to bye-laws as provided under sub-section (4) of Section 16;
(d) ensure compliance by promoter and association of allottees , the provisions of this Act, rules and the bye-laws by issuing suitable direction;
(e) resolve any other dispute which may arise under the provisions of this Act, rules and the bye-laws; and
(f) to perform any other functions as may be prescribed.
Competent Authority and its powers and functions.
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(4) The Competent Authority shall, for the purpose of its powers and functions under this Act have the same power as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit, in respect of the following matters, namely :─
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents ;
(c) issuing commissions for examination of witness; and
(d) any other matter which may be prescribed;
(5) all proceedings before the Competent Authority shall be deemed to be judicial proceedings within the meaning of Section 193 and Section 228 and for the purpose of Section 196 of the Indian Penal Code, 1860 and the Competent Authority shall be deemed to be a civil court for the purpose of Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
24. Where more than two-third of the apartment owners suggest in writing in the prescribed manner that the Competent Authority may discharge the functions of the association of allottees as laid down in this Act and the bye–laws, the Competent Authority with prior approval of the Appellate Authority may discharge the functions of the association of allottees for such period as may be directed by the Appellate Authority:
Provided that every apartment owner, as soon as may be practicable, be intimated by the competent authority by registered letter issued to the address of such apartment owner.
25.(1) The State Government may, by notification, appoint any officer not below the rank of Collector as the Appellate Authority to exercise the powers conferred on it and to perform the functions assigned to it under this Act.
(2) Any person aggrieved by an order passed or direction issued by the competent authority under this Act or the rules or bye-laws, may prefer an appeal, in such form and in such manner and accompanied by such fees, as may be prescribed, before the Appellate Authority, within thirty days from the date of such order or direction, as the case may be, within such further period as may be allowed by the Appellate Authority on sufficient grounds being shown.
5 of 1908.
2 of 1974.
45 of 1860.
Functions of the association of allottees to be discharged by the Competent Authority.
Appointment and powers of the Appellate Authority.
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(3) The Appellate Authority may, after giving an opportunity to be heard to the parties, pass such order, as it deems fit, either confirming, modifying or setting aside the order or direction of the competent authority and the order of the Appellate Authority shall be final.
(4) The appeal under this section shall, as far as possible, be disposed of by the Appellate Authority within a period of ninety days from the date of filing and if an appeal is not disposed of within the aforesaid period, the Appellate Authority shall record reasons therefor.
CHAPTER VII OFFENCES AND PENALTY
26.(1) If any promoter, ─
(a) has failed to submit the declaration under section 9 or any amendment thereto; or
(b) has failed to form the association of allottees as per Section 15; or
(c) has failed to execute the deed of transfer of apartment under section 8; or
(d) has handed over the possession of the apartment without obtaining Occupancy Certificate, he shall, at the instance of the Secretary of the association of allottees or any official duly authorised by the Executive Committee by the association of allottees or an aggrieved apartment owner or in a proper case the competent authority, on conviction, be liable to be punished with fine which may extend to five lakh rupees and a further fine which may extend to two thousand rupees for every day during which such contravention continues after the conviction.
(2) If any promoter, except the offence as provided in sub-section (1), or an association of allottees or an apartment owner contravene any provisions of this Act or rules or any provision of the bye-laws or commit breach of any provision of bye-laws or of any covenant, condition or restriction set forth in the deed of transfer or declaration or does anything detrimental to the health and safety of public, the Competent Authority may issue, either suo-motu or on an application from any person affected, a notice to such promoter or association of allottees or an apartment owner to show cause why penalty should not be imposed and if no sufficient cause is shown, the Competent Penalty.
23 Authority may impose for each contravention or for breach, a penalty which may extend to twenty thousand rupees and further sum which may extend to one thousand rupees for each day till the breach or contravention continues.
(3) The penalty under sub-section (2) may be recovered as an arrear of land revenue in case promoter or association of allottees or an apartment owner on whom such penalty is imposed fails to pay such penalty within the time as directed by the competent authority.