Case Title: M J MAthew & others And Prestige St. Johns Wood Apartment Owners Association & ANR
Case No: WP 2881/2016
Date of Order: 07-08-2023
CORAM : HON’BLE JUSTICE R NATARAJ
Introduction
The Karnataka High Court recently refused to entertain a writ petition moved by certain flat owners questioning the amendment of bye laws of the Apartment Owners’ Association which paved way for levy of ‘Facilitation Charge’ from owners who had let out their apartments on
lease, licence, tenancy or otherwise.
Facts
The petitioners claim to be the owners of certain apartments in respect of which an Apartment Owners’ Association, namely, respondent No.1 is constituted under the provisions of the Karnataka Apartment Ownership Act, 1972 (for short, ‘the Act of 1972’). The petitioners allege that the respondent No.1 introduced a few amendments to the bye-laws by inserting ‘Facilitation Charge’ that was collectible from the owners of the apartments who had let them out on lease, licence, tenancy or otherwise. The petitioners contend that this levy of facilitation charges is arbitrary and against the principles of law and cannot stand the scrutiny of the law of the land. The petitioners have raised several grounds in support of their contention that the amendment of the bye-law of the respondent No.1 to insert necessary ‘Facilitation Charge’ are allillegal.
Court Analysis
In this case, a single judge bench of Justice R Nataraj dismissed a petition filed by individuals challenging the actions of the Prestige St Johns Wood Apartment Owners Association, which operates under the Karnataka Apartment Ownership Act, 1972. The petitioners argued that the imposition of facilitation charges was arbitrary and against legal principles, and the insertion of the ‘Facilitation Charge’ in the association’s bye-laws was illegal. The court noted that the association was a private entity and not considered a ‘State’ under Article 12 of the Indian Constitution, implying that it did not perform public duties. Therefore, the court concluded that the activities of the association were not subject to judicial review through a prerogative writ. The court advised that if the petitioners had grievances against the association’s actions or amendments to the bye-laws, they should challenge them in a competent Civil Court rather than seeking relief through the court that dismissed the petition.
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Written by- Shreya Sharma
