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MR. RAMASUBRAMANIAM v. EDEN HALL APARTMENT CONDOMINIUM
Factual and Procedural Background
The petitioner, Mr. Ramasubramaniam, is one of the owners of Eden Hall Apartments Condominiums. The respondent, Eden Hall Apartment Condominium Association, filed a civil suit (O.S. No. 26140/2015) seeking recovery of arrears of maintenance charges from the petitioner. The petitioner denied liability and filed an application under Order VII Rule 11(d) of the CPC seeking rejection of the plaint on the ground of non-compliance with Order I Rule 8 of the CPC. The trial court dismissed this application. The petitioner challenged this dismissal by filing the present Civil Revision Petition under Section 115 of the CPC.
Legal Issues Presented
- Whether an association of apartment owners registered under the Karnataka Apartment Ownership Act, 1972, has the legal capacity to sue or be sued on behalf of its members without obtaining permission of the court under Order I Rule 8 of the CPC?
- Whether the suit filed by the respondent association for recovery of maintenance charges is maintainable despite the petitioner’s contention of non-compliance with procedural requirements under the CPC?
Arguments of the Parties
Petitioner’s Arguments
- The Karnataka Apartment Ownership Act, 1972 does not empower an association of apartment owners to sue or be sued on behalf of other members.
- Section 2(d) of the Act defines "association of apartment owners" as all apartment owners acting as a group in accordance with bye-laws and declaration, but this does not confer legal capacity to sue collectively.
- The suit filed by the respondent is barred for non-compliance of Order I Rule 8 of the CPC, which requires permission of the court for one or more persons to sue on behalf of all persons having the same interest.
Respondent’s Arguments
- The respondent is a registered association under the Karnataka Apartment Ownership Act, 1972, represented through its authorized representative.
- Section 7 of the Act entitles the association to recover sums due from apartment owners, including maintenance charges.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court noted that the petitioner has not disputed the association’s registration under the Karnataka Apartment Ownership Act, 1972. It recognized that while unregistered associations lack legal entity status and require court permission under Order I Rule 8 of CPC to sue on behalf of members, the present association is registered under the Act. Section 7 of the Act explicitly empowers the association to enforce compliance with byelaws and recover sums due from apartment owners through actions maintainable by the manager or board on behalf of the association. The Act requires only registration under its own provisions and does not mandate registration under any other law. Consequently, the association’s suit is maintainable without needing permission under Order I Rule 8 CPC. The petitioner’s objection on this ground was found to be without substance. The court found no illegality in the trial court’s dismissal of the petitioner’s application and upheld the order.
Holding and Implications
The Civil Revision Petition is dismissed.
The decision confirms that a registered association under the Karnataka Apartment Ownership Act, 1972, has the statutory capacity to sue for recovery of maintenance charges without requiring court permission under Order I Rule 8 of the CPC. The ruling directly affects the parties by upholding the trial court’s order dismissing the petitioner’s application. No broader precedent beyond the statutory interpretation of the Act was established by this decision.
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CRP No. 2 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 17TH DAY OF APRIL, 2023
BEFORE
THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
CIVIL REVISION PETITION NO. 2 OF 2023 (IO)
BETWEEN:
MR. RAMASUBRAMANIAM
S/O M.S. VENKATESWARAM
AGED ABOUT 54 YEARS
R/AT NO.102, EDEN HALL
NO.245, 80 FEET ROAD
INDRANAGAR, DEFENCE COLONY
BANGALORE-560 038. …PETITIONER
(BY SRI. VACHAN H.V., ADVOCATE FOR
SMT. KAVITHA D., ADVOCATE)
AND:
EDEN HALL APARTMENT CONDOMINIUM
AN ASSOCIATION REGISTERED UNDER THE KARNATAKA
APARTMENT OWNERSHIP ACT, 1972
HAVING ITS REGISTERED OFFICER AT NO.245
80 FEET ROAD, DEFENCE COLONY
DIVISION NO.67, BANGALORE-560 038
REPRESENTED BY ITS AUTHORIZED REPRESENTATIVE,
MR. R.S. VIDYA SHANKAR
…RESPONDENT
(BY SMT. RANJANA IYER, ADVOCATE)
THIS CRP IS FILED UNDER SECTION 115 OF THE CPC, 1908,
AGAINST THE ORDER DATED 21.11.2022 PASSED ON I.A.1/2021 IN OS.NO.26140/2015 ON THE FILE OF THE LXXIV ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, C/C. LVII ADDITIONAL CITY CIVIL AND
SESSIONS JUDGE, MAYOHAL UNIT, CITY CIVIL COURT, BENGALURU.
DISMISSING THE I.A.NO.1/2021 FILED UNDER ORDER 7 RULE 11 (d)
OF CPC.
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THIS PETITION, COMING ON FOR DICTATING ORDERS, THIS
DAY, THE COURT MADE THE FOLLOWING:
O R D E R
This CRP is filed against the order dated 21.11.2022 passed by LVII Additional City Civil and Sessions Judge mayo hall unit, Bengaluru in O.S.No.26140/2015.
2. The petitioner is one of the owners of Eden Hall Apartments Condominiums. Respondents have filed a civil suit in O.S. No. 26140/15 to recover the arrears of maintenance charges. The petitioner denied his liability to pay the arrears in his written statement and filed an application for rejection of plaint under order VII Rule 1(d) for non compliance of order I Rule 8 of CPC. The trial court dismissed the application. Hence, this petition.
3. Learned counsel for petitioner submits that there is no provision in the Karnataka Apartment Ownership Act, 1972 [for short 'the Act'] empowering an association of apartment owners to sue or be sued on behalf of other members. Section 2(d) of the Act defines "association of apartment owners" as all the apartment owners acting as a group are in accordance with bye laws and declaration. Hence, he submits that the suit filed by the respondent is barred for non-compliance of order I Rule 8 of CPC which specifies that, where there are numerous persons having same interest in one suit, one or more such persons may with the permission of the court sue on behalf of all persons so interested.
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4. Learned Counsel for Respondent submits that it is a registered association under the provisions of the Act, and is represented through its authorized representative. She further submits that section 7 of the Act entitles the association to recover sums due from the apartment owners.
5. Heard learned counsel for the parties.
6. It is alleged in the plaint that the petitioner has not paid the maintenance charges and the suit is filed to recover the arrears of charges. It is not in dispute that the plaintiff - Association is registered under the Karnataka Apartment ownership Act, 1972.
7. It is settled law that unregistered Association is not a legal entity and an unregistered Association can file a suit by all the members of the Association and one member can maintain a suit on behalf of all the members having same interest in the suit only with the permission of the Court in the representative capacity under Order 1 Rule 8 of CPC.
8. Section 7 of the Act, 1972 deals with the compliance with covenants, byelaws and administrative provisions and specifies that each apartment owner shall comply with the byelaws and the covenants, conditions and restrictions set forth in the declaration and failure to comply shall be a ground for an action to recover the sum due for damages or injunctive relief or both maintainable by the manager or board of manager on behalf of the Association of Apartment owners.
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9. The plaintiff - Association has submitted to the provisions of the Act, 1972 by duly executing and registering a declaration as specified under Section 2 of the Act, 1972. There is no requirement for registration of the Association under any other provisions of law except under the Act, 1972 nor the Act requires registration of the Association under any other provisions of law.
10. Section 7 of the Act, 1972 clearly specifies that the Association can initiate action for recovery of the dues by the Association of Apartment Owners which has submitted to the provisions of the Act, 1972 by executing and registering a declaration. In the absence of any provision in the Act 1972, requiring the permission of the Court to institute a suit by the Association, the contention of the defendant that the suit filed by the plaintiff is not maintainable is without any substance.
11. I do not find any illegality in the impugned order passed by the Trial Court. Accordingly, I pass the following:
ORDER
i. Revision petition as dismissed.
Sd/-
JUDGE
BKM
List No.: 1 Sl No.: 26
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