Treasure Park Precedent: Proportional Maintenance & Delegated Registrar Powers under the Maharashtra Apartment Ownership Act, 1970

1. Introduction

The Bombay High Court’s decision in Mr. Sachin Malpani & Ors v. Mr. Nilam Patil & Ors (W.P. No. 9179 of 2022, decided on 4 August 2025) settles two recurring controversies that plague Maharashtra’s apartment condominiums:

Basis for levying common maintenance charges – whether all owners pay equally or in proportion to their undivided interest.
Jurisdiction of Deputy Registrars under the Maharashtra Apartment Ownership Act, 1970 (MAOA) – whether a Deputy Registrar can adjudicate complaints in the absence of express delegation under MAOA.

The petitioners (owners of larger 3-BHK/4-BHK flats) challenged concurrent orders of the Deputy Registrar, Co-operative Societies, Pune (8 July 2021) and the Co-operative Court, Pune (13 May 2022) directing that maintenance be collected pro rata to each apartment’s undivided share in common areas, as mandated by section 10 MAOA. They argued absence of jurisdiction, violation of natural justice, and reliance on a past general-body resolution for equal charges. The respondents were smaller-flat owners who invoked section 10 MAOA.

2. Summary of the Judgment

The High Court dismissed the writ petition, upholding both impugned orders.
It affirmed that maintenance expenses must be apportioned according to each owner’s percentage of undivided interest as recorded in the registered Deed of Declaration, consonant with sections 6 & 10 MAOA.
The court ruled that Deputy Registrars possess jurisdiction to act as “Registrar” under MAOA by virtue of Government Notifications issued under section 3 of the Maharashtra Co-operative Societies Act, 1960 (MCSA), delegating “all powers of the Registrar”, save specified exceptions.
Past resolutions prescribing equal charges cannot override statutory provisions or the registered declaration.
Petitioners, having earlier benefited from unequal charges, cannot now resist statutory compliance.

3. Analysis

3.1 Precedents Cited

Marathwada University v. Seshrao Balwant Rao Chavan (1989) – reaffirmed the maxim delegatus non potest delegare. Petitioners relied on it to argue that the Registrar’s powers under MAOA could not be sub-delegated to a Deputy Registrar without express delegation.
Sahni Silk Mills (P) Ltd. v. ESIC (1994) – similar principle on delegation; also cited by petitioners.
Venus Co-operative Housing Society v. Dr. J.Y. Detwani (2002 Bom) – held that in co-operative housing societies (registered under MCSA) common amenities may be equally enjoyed irrespective of flat size. Petitioners used this to argue parity of maintenance.

The High Court distinguished / limited these precedents:

Delegation point: Notifications dated 11 Sept 2012 & 24 Nov 2021 explicitly vested the Deputy Registrar with “all powers of the Registrar” under MCSA, and through section 2(s) MAOA the same Registrar is the authority for MAOA. Hence delegation was not implied; it was express.
Equal-maintenance precedent: Venus dealt with co-operative societies under MCSA, not with condominiums governed by MAOA. MAOA contains a mandatory pro-rata formula (sections 6 & 10) and the Deed of Declaration entrenched that formula.

3.2 Legal Reasoning

Statutory primacy: Section 10 MAOA is couched in mandatory language (“shall”) compelling distribution of common expenses “according to the percentage of the undivided interest”. Any contrary resolution is ultra vires.
Deed of Declaration: Clauses 7 and 8(xviii) quantify each flat’s percentage contribution, tying it to the Maintainance Corpus Fund (MCF) ratio. A registered declaration has “permanent character” (section 6(2) MAOA) and runs with the property.
Voting rights & benefit principle: Larger-flat owners already enjoy higher voting weightage and proportionately larger undivided shares; fairness demands proportionate liabilities.
Administrative Jurisdiction: By defining “Registrar” in section 2(s) MAOA as one appointed under MCSA, and by issuing wide-ranging delegatory notifications, the State validly empowered Deputy Registrars. Thus order dated 8 July 2021 was intra vires.
Natural Justice: Petitioners were aware of the complaint, saw the order on the notice board, and got full appellate hearing before the Co-operative Court and the High Court. No prejudice shown.

3.3 Impact of the Judgment

Uniform Precedent for Condominiums: Confirms that all condominiums registered under MAOA in Maharashtra must levy maintenance and other common expenses strictly pro rata to undivided interest, irrespective of historic resolutions or customs.
Clarifies Delegated Authority: Establishes that Deputy Registrars, by virtue of section 3 MCSA notifications, are competent authorities under MAOA. Challenges to their jurisdiction on delegation grounds will likely fail unless notifications are contradicted.
Corporate governance implications: Committee decisions contrary to the Deed of Declaration or MAOA can be struck down; associations must align their bye-laws and billing systems accordingly.
Financial Consequences: Owners of larger apartments may see higher recurring liabilities; smaller-flat owners gain relief from subsidising larger-flat users.
Litigation Reduction: Provides a clear rule, curbing repetitive disputes on equal vs. proportional maintenance in condominiums.

4. Complex Concepts Simplified

Apartment Act / MAOA: Maharashtra Apartment Ownership Act, 1970 – a statute that allows a building to be declared a “condominium”, creating individual freehold title to each unit plus an undivided share in common areas.
Undivided Interest: The fractional share every owner has in the land, lobbies, staircase, club-house, etc. It cannot be separated from the flat and is expressed as a percentage.
Common Areas & Facilities: Spaces or amenities meant for collective use (e.g., lifts, corridors, garden, swimming pool). Defined in section 3(f) MAOA.
Common Expenses / Maintenance: Expenses for repair, replacement, insurance, utilities, staff salaries, etc., concerning common areas. Section 10 mandates distribution based on undivided share.
Registrar vs. Deputy Registrar: The Registrar is the statutory head under the Co-operative law. Through government notifications, Deputy Registrars are empowered to exercise almost all Registrar powers in specified districts.
Deed of Declaration: A registered document by which a promoter (or owners) submits the property to provisions of MAOA. It fixes each flat’s area, percentage share, voting rights, and obligations. Alteration requires fresh registered amendment with majority consent.

5. Conclusion

The Bombay High Court has delivered a lucid and far-reaching ruling that cements the proportionality principle for common expenses in MAOA condominiums and recognises the lawful jurisdiction of Deputy Registrars acting under delegated authority. Associations cannot contract out of statutory mandates; registered declarations carry permanent force. Apartment owners, especially in mixed-size projects, must now budget maintenance according to their documented percentage share, and governance bodies must realign their accounting and billing practices with the statute.

Key takeaway: In Maharashtra condominiums, liability follows share—both legally and financially.