byelaws apartment association reference
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Apartment owners association bye laws draft is attachedTRANSCRIPT
BYELAWS
OF
XYZ APARTMENT OWNERS’ ASSOCIATION
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CHAPTER1: PRELIMINARY
1. The name of the Association shall be “XYZ APARTMENT OWNERS’ ASSOCIATION’.
2. The registered address of “XYZ APARTMENT OWNERS’ ASSOCIATION’ shall be as under:
“XYZ APARTMENT OWNERS’ ASSOCIATION’
XYZ, No55, ……….Main Road,
XYZ
Any change in the address of the association shall be communicated to the jurisdictional Registrar of Firms and Societies within 14 days from the date of such change.
3. Definitions
In this bye laws, the following words and expressions shall, unless repugnant to the context or meaning thereof, having the meaning hereinafter respectively ascribed to them:
a. “Accounting Year” means the financial year commencing from the 1st April of any calendar year and ending on the 31st March of the next calendar year.
b. “Applicable Laws” means all laws in force and effect as of the date hereof and which may be promulgated or brought into force and effect hereinafter in India, including
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judgements, decrees, injunctions, writs or orders of any court of record, as maybe in force and effect during the subsistence of the byelaws.
c. “Apartment” means a part of the property ‘XYZ ‘ intended for independent use, including one or more rooms or enclosed space located on one or more floors of the property, intended to be used for residential purposes and with a direct exit to the public street, road or highway or to common area leading to such street, road or highway.
d. “Apartment owner” means the person/s owning an apartment along with an undivided interest in the common areas and facilities.
e. “Apartment number” means the number, letter or combination thereof designating the apartment in the deed of conveyance.
f. “Arbitration Act” means the Arbitration and Conciliation Act, 1996 and shall include any amendment to or any re‐enactment thereto as in force from time to time.
g. “Act” means the Karnataka Apartment Ownership Act, 1972.
h. “Block” means each of the blocks “Block A known as <>, Block B known as <>” referred to individually.
i. “Property” means all that piece and parcel of land and buildings existing and constructed on Corporation Khata Nos. XYZ Main Road ,…………. main Road ,bearing
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amalgamated Corporation No.1111111 measuring 11111111 Sft the entire property is bounded by:
East: Main Road
West: Property XYZ
North: XYZ
South: XYZ
Along with surrounding open spaces, roads, parks, playgrounds, parking spaces, civic amenities.
j. “Building” means the building complex “XYZ” comprising of individual blocks as referred to in the previous point along with the surrounding open spaces, roads, play areas, parking places and civic amenities constructed/erected on the Property.
k. “Bye Laws” means the bye laws of the Association.
l. “Committee” means the managing committee of the Association as formed in accordance with Chapter of this Bye Laws.
m. “Common Areas and Facilities” shall mean:‐
i. The foundations, columns, girders, beams, supporting main walls, roofs, corridors, lobbies, stairs, stairways, fire escapes, entrances and exits of the building.
ii. The gardens, general parking areas, driveways, the premises for lodging of person employed for maintenance and management of the property.
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iii. Installations of central services such as power, light, power generators and sewage treatment plant.
iv. The elevators, tanks, pumps, motors, fans, ducts and in general all apparatus and installation existing for common use.
v. Fire alarm and sprinkler system
vi. Gymnasium with all the equipment
vii. Underground water and sewage lines, cable TV and telephone lines, common electricity meters and fiber optic conduits, intercom and any other facilities that may be added from time to time as common areas and facilities.
viii. Sitting area and praying area
ix. Such community and commercial facilities as maybe provided as common areas and facilities.
x. All other parts of the property necessary or convenient to its existence, maintenance and safety or normally in common use.
n. “Common expenses” means:
i. All sums lawfully assessed against the apartment owners by the association
ii. Expenses of administration, maintenance, repair or the replacement of common areas and facilities.
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iii. Expenses agreed upon as common expenses by the Association
o. “Member” means any person/s entered as such in the Register of Members maintained by the Association.
p. “Resident” shall mean any person/s in occupation of an apartment
q. “Parking space” means the areas earmarked/reserved for parking as per the sanctioned plans.
r. “Person” means (unless otherwise specified or required by the context), any individual, company, corporation, partnership, joint venture, trust, unincorporated organization, government or Government agency or any other legal entity.
s. “Net Surplus/Deficit” means the balance of all income, rents, receipts and revenues from the common areas and facilities remaining after the deduction of the common expenses.
t. “Registrar” means the Registrar appointed by the Government under the provisions of the Karnataka Societies Registration Act, 1960.
u. “Association” means the XYZ Apartment Owners’ Association.
4. Interpretation: In this bye law, unless the context otherwise requires:
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a. Any reference to a statutory provision shall include such provision such as is from time to time modified or re‐enactment or consolidation so far as such modification or re‐enactment or consolidation applies or is capable of applying to any transaction entered into hereunder.
b. References to the Applicable Law shall include the laws, acts, ordinances, rules, regulations, guidelines or bye laws which are in force in the State of Karnataka.
c. The words importing singular shall include plural and vice versa, and the words denoting the natural persons shall include partnerships, firms, companies, partnership, joint venture, trust, societies, organizations or other entities (whether or not having a separate legal entity)
d. The headings are for convenience of reference only and shall not be used in, and shall not affect, the construction or interpretation of this Bye‐Laws.
e. The words “include” and “including” are to be construed without limitations;
f. Any reference to any period of time shall mean a reference to that according to the Indian Standard Time.
g. Any reference at any time to any agreement, deed, instrument, license or document of any description shall be construed as reference to that agreement, deed, instrument, license or other document as amended, varied, supplemented, modified or suspended at the time of such reference;
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h. Any agreement, consent, approval, authorization, notice, communication, information or report required under or pursuant to this Bye Laws from or by any party shall be valid and effectual only if it is in writing under the hands of duly authorized representative of such Party, as the case may be, in this behalf and not otherwise;
i. Unless otherwise stated, any reference to any period commencing “from” a specified day or date and “till” or “until” a specified day or date shall include both such days and dates.
5. Ambiguities and Discrepancies: In case of ambiguities or discrepancies within this Agreement, the following shall apply:
a. Between two Chapters of this Bye Laws, the provisions of specific Chapters relevant to the issue under consideration shall prevail over those in other chapters.
b. Between Chapters and the Schedules and Annexures, the Chapters shall prevail.
c. Between any value written in numerals and that in words, the latter shall prevail.
6. Applicability
These Bye‐laws shall be adhered to and followed, in its true spirits by all the Members of the Association, their tenants, employees, servants and/or any other person who may use the facilities within the apartment in any manner.
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Mere act of acquisition or rental or taking on lease and/or license of any apartment in XYZ or mere occupancy of any apartment shall mean that these bye laws have been read and understood, accepted, ratified and will be complied with at all times.
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CHAPTER2: OBJECTS OF ASSOCIATION
The Objects of the Association shall be:
1. To be and to act as the Association of Apartment owners of the building XYZ located at No………………………. (hereinafter called “THE SAID BUILDING”] who have filed his/her/their respective Declaration/s submitting his/her/their respective Apartment/s to the provisions of the Act.
2. To invest or deposit moneys belonging to the association.
3. To establish and carry on its own account or jointly with individual/s or institutions/s, educational, physical, social and recreational activities for the benefit of the apartment owner/s with the approval of the General Body.
4. To frame the rules, with the approval of the General Meeting of the Association for establishing a Provident Fund, Gratuity Fund, and such other statutory fund/s, if necessary, for the benefit of the employee/s of the Association.
5. To do all things necessary and/or otherwise provide for their welfare expedient for the attainment of the objects specified in these Bye‐Laws.
6. To manage, maintain, administer and regulate the common area/s and/or facilities such as water supply to the apartment/s and the common area/s as custodian, to the best advantage and benefit
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of all the Apartment Owner/s and bonafide resident/s authorized by the Owner/s by contribution/s, payment of the maintenance charges from the apartment owners.
7. To promote common interests, well being and welfare of the Apartment owners, encourage mutual help and comradeship amongst them in accordance with cooperative principles.
8. To hire or enter into contract/s and/or agreement/s for or in connection with all allied matters or purposes that may be required for running and maintaining the building, common areas and facilities.
9. To initiate or defend any legal proceedings, only in so far as it is related to connected with the common areas and facilities or encroachment of the Rules and the Byelaws, regulations, duties and responsibilities herein appended and any other related affair/s and to protect the common interests of the association.
10. To build up reserves for the Association by judicious and economical expenditure every month, not exceeding the collections of the maintenance charges and invest the resultant reserves of the Association, not immediately required, in any deposits, investments in Nationalized Banks and approved Securities under the Trust Act.
11. To collect the maintenance charges from owners, create and maintain additional funds that may be created by additional levy of charges (e.g. Corpus Fund) and / or charges as penalties for non payment of maintenance charges and/or damages caused by the
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members, etc., in the common interest of all the members of the association.
12. To constitute Inquiry Committees of Members to go into, investigate, inquire and advise the general body or the Managing committee about any problems, dispute, and differences, either among the members or between the association and one or more Members and other related matters of the Association.
13. To generate additional revenue for the association by allowing certain private functions of the owners, tenants and/or lessees on the common premises.
The Managing Committee shall not act beyond the scope of its objects without duly amending the provisions of these bye laws for this purpose.
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CHAPTER3: MEMBERSHIP 1. Signatories – All persons who have signed the application for
registration of the Association shall be deemed to be the original members.
2. It shall be mandatory for all owners to become a member of the Association. Membership to the association will be subject to the provisions of the Act, Rules and this Bye Laws.
3. All persons who have purchased apartment/s in the Property and executed respective Declarations under Section 5 of the Karnataka Apartment Ownership Act, 1972, submitting their apartments to the provisions of the Act shall be deemed to be members but they shall acquire formal membership of the Association by applying in writing in a format published to the President/Secretary of the Association for the membership together with the membership fee.
4. Each Apartment Owner on becoming a member shall receive a copy of the Bye Laws of the Association.
5. The said membership shall be co terminus with the ownership of the apartment/s and shall be automatically terminated upon the sale of the apartment/s and the new owner shall become the member by paying the membership fee that might be prescribed from time to time by the Association at the Annual General body Meeting.
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6. The amounts received as the membership fee is non refundable and shall be retained by the Association and shall form the corpus towards the reserve fund to be used for overall maintenance, repairs of urgent nature and towards any other exigencies and/or emergencies that may arise.
7. If the Apartment owner is a firm, company or HUF, the membership of the association shall stand in the name of the firm, company or HUF and the person authorized by such firm, company or HUF shall be entitled to vote.
8. Where an apartment has been purchased by two or more persons jointly, the membership of the association shall stand in their joint names, but the person whose name stands first in the sale deed shall alone be entitled to vote. Notwithstanding the above, the first person named in the sale deed may authorize in writing any of the other joint owners and/or any other family member to act as a member on his behalf.
9. Upon any Apartment owner selling or absolutely conveying the apartment in favor of any third party, by way of gift or release or otherwise, the subsequent Purchaser, Donee or release shall be admitted as a member of the association on fulfillment of the aforementioned condition. The membership fee is not transferable.
10. On the death of an apartment owner, the membership of his apartment shall be transferred to the person/s to who he bequeaths the same by his will or to the legal representative of his estate, in case he has died intestate. The names of the legatee or the names of the legal representatives shall be entered in the
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register of members. Where any legatee is a minor, the name of his natural/legal guardian shall be entered in the Register of Members. However, only one legatee or legal representative shall be entitled to vote or be elected to the Managing Committee.
11. No apartment owner/s shall be entitled to vote at the election of members of the Managing Committee or any other office bearers of the association or be entitled to contest for election to such office if they are in arrears for a period of more than 60 (sixty) days on the date of the meeting notice in respect of their contribution for maintenance or other charges of the association.
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CHAPTER4: MANAGEMENT OF THE ASSOCIATION
Day to Day Management
a) The day to day affairs of the Association shall be conducted and shall vest in the Managing Committee.
b) The Management Committee shall be constituted as per Clause <> below and the members of the Managing Committee shall comprise of Apartment Owners or their authorized representatives only who shall be the present residents of XYZ .
c) The Management Committee may employ a Manager at a compensation determined by the Committee to perform such duties and services as the committee shall authorize from time to time.
d) This appointment and continuation of the Manager shall always be governed by the Managing Committee.
e) The Secretary and the Manager shall be responsible for identifying and assessing the requirements of Association, making proposals for the budgets. Manager shall always be required to undertake all acts and deeds necessary to achieve the objectives of the Association in a smooth manner and to provide for general administration support to the Executive Committee. All actions/proposals of the Manager shall be subject to the approval of the Committee as per guidelines laid down by the General Body from time to time.
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f) The Manager may be required to attend all the Meetings of the General Body but shall have no voting rights.
g) The members or their proxies shall be eligible to attend all Meetings of the General body.
h) The Committee may appoint officers , advisers, accountants, lift operators, or any other staff that may be required to achieve the objects of Association. The Manager shall report to the committee and the rest of the Officers/employees of the Management shall report to the Manager. The salaries and emoluments of the Manager and all other Officers shall be paid by the Association.
i) If any of the committee members wishes to move out their posts, he/she shall give a prior notice of 15 days, relinquish the post and such vacancy shall be duly filled by the managing Committee by co‐opting any other Member.
The Management of the Association
a) The management of the affairs of the association shall vest in the Managing Committee constituted under the provisions of the Act, rules and bye‐laws of the Association.
b) The managing Committee shall comprise of Office bearers mentioned hereunder from (i) to (vii) :‐
i. A President
ii. A Vice President
iii. A Secretary
iv. A Treasurer
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v. Executive Committee Members – 4 members
c) It shall be mandatory that each block is represented at least by 2 members in the overall committee.
d) The election and demarcation of duties of the Office bearers will be decided by the elected Managing committee.
e) Only the Members or their nominated proxy shall be entitled to elect the representatives to the Managing Committee.
f) The General Body shall be at liberty to increase the Management Committee members only through an amendment through a General Body Meeting.
g) The elections of the Managing Committee members shall be held under the supervision and direction of the Returning Office appointed and all the questions relating to the election or arising in connection therewith shall be decided by the returning Officer.
h) Members proposed for the election of the committee at the general meeting should have been members of the association for a continuous period of 12 months before the date of the meeting at the general body, should have paid their dues to the association up to date. This shall, however, not be applicable to the First managing Committee.
i) The election, term of office, their duties and removal/expulsion of Managing Committee shall be as set out in this Bye Laws.
Powers & Responsibilities of the Committee
a) To admit new Apartment owners as members;
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b) To do all activities for meeting the objects of Association;
c) To control and manage all funds, properties of the Association;
d) To take care and upkeep the common areas and facilities and supervise, direct and control the day to day administration of the association;
e) The committee shall also have powers to consider and decide any emergent and temporary restrictions on the operations and use of the common areas and facilities and advise the owners accordingly for the compliance of the same;
f) To appoint, suspend, punish and dismiss the employees and the staff and to fix their duties, conditions of service, conduct and their remunerations;
g) To appoint or constitute sub committees to assist the Managing Committee in any activity of the association;
h) To keep proper accounts of the Association and make a provision for the audit of the same and appoint outside accountants, if necessary;
i) To inspect and check the accounts kept by the secretary and/or the treasurer of the Association and examine the registers and accounts, books, etc. and to take steps for timely recovery of all dues owed to the Association either by members or outsiders;
j) To sanction work expenses, check cash balances, check bank balances of the Association for their correctness and to see that the cash book is written properly and promptly.
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k) To enter into any contract or agreements with any person/s, company, firm/s or corporate body for the purpose of carrying out any of the objects of the Association and to renew the same;
l) To execute any documents to be executed by or in favor of the Association;
m) To represent the association in all matters;
n) To authorize institution of and defend legal proceedings;
o) To prepare periodical reports including yearly report, statement of expenses and receipts, balance sheets with assets and liabilities, estimate of revenue and expenses;
p) To redress the complaints of the Members;
q) To decide on any expenditure required to discharge its duties and accordingly decide the contributions to be made by each member for the purpose;
r) To incur all the expenses, with the approval of the General Body, that may be required for major replacement of equipment, fittings, fixtures, etc. of the common services and repair and reconstruction of any or part of the building from funds that may be collected under the heading of Corpus Fund. The Managing Committee should exercise due prudence in ensuring that ordinary repairs generally of revenue expense nature should not be met from the Corpus Fund.
s) If an apartment owner defaults in payment of his share of expense and contributions and is in arrears for a period of one month or more, the Managing Committee will have powers, by
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giving not more than one week’s notice in writing and / or displayed in the notice board, to take necessary administrative actions by levying fines and interest, simple or compound for such defaults, in addition to discontinuance of common services such as water, electricity, etc. The Association may also take legal action as deemed fit and seek necessary charge on property for expenses not paid by owner and such other actions as per provisions of the Act.
t) To seek legal redressal against any defaulting agencies and/or Members.
u) To deal with infringements and/or default of any of the rules, regulations and Bye laws of the Association as and when it arises.
v) To collect any other fee for any other specific service/facility rendered by the Association
Election and Terms of Office of the Managing Committee
a) At the first General Meeting of the Members, the Managing Committee will be elected, whose terms of office will be fixed for a period of two years. The term of office will commence from the Annual General Meeting date till the next Management Committee takes charge.
b) At the expiry of the initial term of office of respective Managing Committee members, his/her successor shall be elected to serve a term of two years. Such outgoing/Managing Committee members shall hold office until their successors have been elected and taken charge of office.
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Vacancies in the Committee
a) Any member of the Managing Committee who absents himself for four consecutive committee meetings shall relinquish his/her post.
b) All the vacancies in the Managing Committee caused by physical incapacity, death, resignation or cessation of membership of the Association or for any reason/s may be filled by the members of the Committee by co‐opting any other member. Any person co‐opted shall cease to be a member of the committee at the time of the next annual general meeting when the vacany shall be filled by election for the balance period of the two year term.
Removal of One or More Member of the Committee
a) In a special general body meeting duly called for as per the bye=laws, any or more members of the Committee may be removed, by a no confidence motion and approved by a 2/3rd majority of votes by the members present and eligible to vote.
b) The notice for the Special General Body meeting shall clearly state the time, date and place of such meeting, the purpose thereof. The members of the Committee who are caused to be removed shall be given a reasonable opportunity to be heard at such meetings.
Regular Meetings of the Managing Committee
a) The Managing Committee shall meet at least once in 30 days at the Office of the Association. If for any reasons the committee is unable to meet on the appointed day, notice for the proposed
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committee meeting shall be given to each member of the committee personally or through email or fax/telegram/postal mail at least five days prior to the meeting.
Special Meeting of the Committee
a) The special meeting of the committee may be summoned by the President, to consider any urgent and important matters and on one day’s notice to each committee member in the manner as said above for the regular meetings. Special Meetings of the Managing Committee shall be also called on the written request of at least 50% of the members of the Committee stating clearly the purpose of the meeting.
Conflict of Interest
a) A member of the Committee shall not participate in any matter under consideration by the Committee regarding the provision of any services or entering into any contract by the Association with any Member of the Committee or any entity being a partnership firm, company, trust, organization or association whom the Member of the Committee or his relative is associated and has a direct or indirect financial interest and the interested member of the Committee shall not be entitled to vote in such meetings in such interested agenda.
b) Any Interested member of the committee must disclose the fact, in writing to the President as soon as the potential conflict is discovered and to the extent possible, before the agenda for the meeting involving the matter at issue is prepared. If conflict of interest is discovered during the meeting, the committee member
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must verbally declare such conflict of interest immediately. Such declaration must be clearly noted in the minutes of meeting and the Member shall abstain from voting.
Waiver of Notice
a) Notice for the regular meeting need not be given. The committee before the closing of each of the meeting shall decide the time and place of meetings and regarding the dispensation of notice. But a special mention shall be made in the next meeting of the committee, the minutes of the previous meeting read out and confirmed by the members present.
Quorum
a) At all the meetings of the Committee, 50% of the members shall constitute a quorum for the transaction of business. If at any meeting, there is no quorum as above, it may be adjourned to another time, date and place. No formal notice is required for adjourned meeting.
b) All questions before the Managing Committee shall be decided by a majority of the votes of the members present and the President shall have a right to a second vote in the case of a tie.
c) Any urgent business of the Managing Committee may be transacted by circulation of papers. Any decision obtained by circulation of papers shall be placed at the next meeting of the managing committee and a formal approval sought from the members.
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d) The Managing Committee shall have the power to appoint one or more sub‐committees amongst its own members and/or amongst other members of the association for the purpose of facilitating business and to assign all or some of its duties and powers to such sub‐committees.
Sub Committees
a) All subcommittee shall function under the Managing Committee and collection of funds and expenditure thereof should only be with the Managing Committee’s approval. The Managing Committee shall ensure that at least one Managing Committee member is a part of the subcommittee who shall be responsible for the management of all the funds of the subcommittee with the appropriate submission of accounts to the committee
Duties and Responsibilities of the Office Bearers
The President
The President shall be the Chief Executive Officer of the Association and of the Committee and shall have all the general powers and duties which usually vests in the office of the president of the Association. The President will preside over the General and Special Meetings of the Association and also of the Committee Meetings. The President shall from time to time be entitled to check the books, files, maintained by the Treasurer and Secretary.
The Vice President
If the President is absent or unable to preside over any meeting, the Vice President as stated in the Bye‐Laws will take the chair and conduct
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the meetings. In case of Committee meetings in the absence or inability of the President to take the chair, the Vice President shall preside and conduct the meetings.
The Secretary
The function and duties of the secretary shall be as follows:
a) Shall be the executive officer of the committee and the association
b) Will be responsible for convening all the meetings of the Association and Committee
c) Shall record the proceedings and minutes of the meetings of the association and the committee, in the minute books kept for the purpose.
d) Shall be responsible for maintaining the books, registers and other records unless otherwise decided by the Committee.
e) All documents, registers and such other important assets of the Association shall be in the custody of the Secretary
f) To sign all documents for/ on behalf of the association of the Association and represent the Association in any legal matters.
g) To supervise and administer the day to day running and functioning of the Association by having an overall check and control of all the employees of the Association
The Treasurer
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a) The treasurer shall be responsible for funds and finances of the Association. He shall also be responsible for the keeping full and accurate account of all receipts and disbursements of the Association, for deposit of all monies and other valuable effects in the name and to the credit of the Association.
b) He/She shall maintain and be in custody of all the financial documents, book of accounts, and be responsible for maintaining promptly and accurately, all the financial transactions in a proper ledgers and books.
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j)
CHAPTER 5: MANAGEMENT OF FUNDS
All income of the Association shall be utilized only for the promotion of the aims and objectives of the Association.
Sources of Income
The sources of income of the association shall be as under:
a) Admission Fees paid by Permanent members
b) Contribution by members for the upkeep, maintenance and management of Common areas and facilities.
c) Interest, dividends, etc from bank accounts or investments made by the Association
d) Donations, gifts, etc received by the Association
e) Any other funds collected by the Association
Accounting
The funds derived as above shall be accounted for under three heads, each earmarked for a specific purpose as under.
1. General Fund
a) Income
• The Annual Maintenance charges, late fees, charges for change of tenancy/ownership collected from owners.
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• Interest accrued from the Savings and Fixed Deposit Accounts
b) Expenditure
• All normal maintenance of common areas, assets and appurtenances including staff salaries shall be charged to this fund.
• Any capital expenditure of less than Rs.5000/‐ shall be charged under this fund
• A pre‐determined amount collected every year may be transferred to Sinking Fund every Financial year as per rule below
• Surpluses, if any, shall be transferred to the Reserve Fund at the end of the year.
c) Holding ‐ Amount not required for normal monthly expenses shall be held in a savings account in any scheduled bank or invested suitably as decided by the Management Committee
2. Reserve Fund
a) Income
• Admission Fees Paid by Members
• Surpluses, if any, from contributions from the owners for installation of any capital equipment or for major maintenance
• Amounts transferred from the General Fund
• Interest accrued in this Fund from Term Deposit/Savings Account of this Fund kept in any scheduled bank.
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• Any other fee collected from owners selling his/her apartment
b) Expenditure – The Committee only with the prior approval of the General Body shall incur expenditure from Reserve Fund. Specific provision in the annual budget/revised budget shall be deemed as approval for such expenditure from this fund
• Special non‐annual maintenance such as painting of common areas and exterior of the buildings
• Any capital expenditure of exceeding Rs.5000/‐ other than replacing plant, machinery and equipment
c) Holding ‐ The amount accrued in this Fund shall be held as Term Deposit/Savings Account in any nationalized bank
3. Sinking Fund
a) Income
• Periodic transfer of the amounts specifically collected from the owners
• Any scrap value realized from the disposal of unserviceable Plant and Machinery, furniture, etc.
• Interest accrued in this Fund from Term Deposit/Savings Account of this Fund kept in any scheduled bank or institution
b) Expenditure – The fund shall be utilized exclusively for replacing Plant, machinery or equipment as and when such items become unserviceable. The Committee only with prior approval of the General Body shall incur the expenditure from this fund and encashing of Term deposits/investments shall be
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done only under such circumstances. Specific provision in the annual budget/revised budget shall be deemed as approval for such expenditure from this fund
c) Holding ‐ The amount accrued in this Fund shall be held as Term Deposit/Savings Account in any nationalized bank or in any liquid instrument in scheduled institution
Deposit of Funds
The funds of the association shall be kept in any Nationalized/Scheduled bank(s) and /or deposited with any post office(s), Government Financial Institutions and /or any securities specified under the Income Tax Act and/or where the Committee (subject to the approval of the General Body) may decide from time to time. Bank Accounts shall be operated by joint signatures of any two office bearers out of the President, the Secretary and/or the treasurer.
Investment of Funds and Guidelines for Investment
The committee while investing the Funds of the association shall follow the following principles:
a) Of the three primary attributes of Safety, Liquidity and Returns associated with the investment decisions;”safety of principal” shall be accorded the highest priority
b) Investments shall be planned so as to fulfill the liquidity needs of the association and therefor part of the corpus shall be placed in investments that are liquid. Money cannot be placed with private cooperative or unscheduled banks.
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c) The committee is entitled to frame further guidelines from time to time for investment.
Mode of collection
The committee may decide from time to time the mode of collections of the dues from the apartment owners so that the association is not bereft of funds at any point of time. To ensure uninterrupted service, the Committee shall collect the annual maintenance in advance. The Managing Committee has the right to change the periodicity of collection of maintenance form time to time.
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d)
CHAPTER 6: ACCOUNTS AND AUDIT
The Financial year of the Association shall be from the 1st Day of April each year to the 31st March of the next year. The first financial year of the Association shall be from the date of incorporation of the Association till the 31st of March 2010.
Financial Statements and Reports
a) The treasurer shall be responsible for the maintenance of accounts of the association The treasurer shall , as soon as possible after the close of the year, make out
a. Receipts and Payments Account
b. Income and Expenditure Account
c. Summary of Property, Assets and Liabilities of the Association giving such particulars as will disclose the general nature of these liabilities and assets and how the value of the fixed assets have been arrived at.
b) The treasurer shall place the accounts before the Managing Committee for their approval and thereafter submit the same to the Auditor for audit and his report thereon.
Audit
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a) The Accounts of the Association shall be audited by a qualified auditor (chartered accountant) within the meaning of the Chartered Accountants Act, 1949.
b) At every Annual General Body Meeting, the members shall appoint an auditor who shall hold office till the conclusion of the next Annual General Body Meeting and shall intimate the same to him in writing with seven days of such appointment.
c) Every auditor so appointed shall confirm in writing to the Association, his acceptance of such appointment within seven days from the receipt of such intimation.
d) The Auditor shall be entitled to call for such documents and explanations as may be required for the purpose of carrying out the audit.
e) The Auditor appointed at any Annual General Body Meeting may be removed by the Members at a General Body Meeting and the members may appoint in his place any other auditor nominated for the said post.
f) Any casual vacancy arising out of resignation, death, incapacitation, etc. of an auditor may be filled up by the Managing Committee and the Auditor so appointed to fill the casual vacancy shall hold office till the conclusion of the ensuing General Body Meeting.
g) Any auditor retiring at an annual general body meeting shall be eligible for reappointment if a nomination to the effect has been received from any member or members and ratified by the general body.
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h) The remuneration payable to an auditor shall be fixed at the Annual General Body Meeting unless the same is delegated to the Managing Committee by the members at the annual general body meeting.
Timeframe for Preparation, Audit and Approval of Accounts
a) The treasurer shall ensure that the accounts of the Association are prepared, got approved by the Managing Committee and audited on or before 30th of June every year in respect of the immediately preceding year ending on the March 31st.
b) The audited accounts and the accompanying documents shall be placed before the members at the Annual General Body Meeting to be held every year on or before the 31st of July.
c) The audited financial statement along with the auditors report thereon and accompanied by other documents such as the list of members with their addresses, etc of the Managing Committee and such other documents as stipulated , shall be submitted to the competent authority under the Karnataka Societies Registration Act, on or before the fourteenth day succeeding the day on which the Annual General Body Meeting is held. A summary of the property and assets and liabilities of the Association giving such particulars as will disclose the general nature of these as liabilities and assets and how the value of fixed assets has been arrived at.
Inspection
A copy of the last audited financial statement and the report of the auditor shall be kept at a conspicuous place in the Office of the
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Association and the same shall be open to inspection by any member during the Office Hours of the Association.
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CHAPTER 7: GENERAL BODY MEETING
First Meeting
The First meeting of the Association shall be called by the Adhoc Committee President within 30 days from the date of registration/incorporation of the Association or within such extended time not exceeding more than 60 days in total.
Subsequent Meetings
All subsequent annual general meetings shall be held within 5 months from the date of close of the financial year.
Business at Annual General Body meeting
The following business shall be transacted at the General Meetings:
a) Adoption of minutes of the proceedings of the previous meetings.
b) Adoption of the report of the managing committee for the preceding year.
c) Consideration and adoption of the statement of audited account for the preceding year.
d) The election of the managing committee, if required, in accordance to the Bye‐Laws
e) The calendar of events and budgets for the succeeding year.
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f) Any other business specific agenda of the meeting of which notice has been received from any member not later than seven days before the date of the meeting.
Decisions
All decisions of the Meeting shall be obtained by the simple majority vote of members present at the meeting.
Votes
Every member shall have one vote irrespective of the number of apartments owned by him and the person who is the President shall have a casting vote only in case of a tie.
Presiding Officer
Generally all meetings, Annual general as well as Special General Body meetings shall be presided over by the President of the Managing Committee and in his absence by the Vice President of the Managing Committee.
Notice
Not less than 21 days notice shall be given in writing by the Secretary to the members before holding the Annual General Meeting. Such notice shall be accompanied by an agenda of business to be transacted. Non receipt of notice by any member, shall not invalidate a meeting so long as notice is served by the Association on the member either personally, email or post at the address registered with the association. It is the responsibility of the owners to keep the association records upto date.
Special General Body Meetings
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A special meeting of the general body shall be convened by the Secretary:
a) On a resolution to that effect by the Managing Committee with at least simple majority; or
b) On a requisition signed by at least 25% of the total number of members and delivered to the Secretary, whereupon such meeting shall be held within 40 days from the date of receipt of the requisition
The notice convening every annual or special general meeting shall state the date, time, place and agenda. In case of a special meeting, the agenda shall specify the items set out in the requisition by the requisitioner.
Quorum
The quorum for the annual or special general meeting shall be 1/3rd of the members of the Association. If within 15 minutes of the time specified for any ordinary general body meeting, no quorum is formed the business of the meeting shall be transacted at the adjourned meeting which may be held at the same place and on the same day after half an hour. Any adjourned meeting can transact business for which it was called without necessary quorum.
Election of Committee and Office Bearers
a) The Managing Committee shall conduct the Annual General Meetings every year but the election to the Managing Committee shall be conducted every two years. The decision of the Managing Committee to conduct elections shall be intimated to the
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members at least two months prior to the proposed election. The elections whenever required shall be conducted at the time of the Annual General Meeting.
b) The notice for the election shall be dispatched to each of the Members of the Association either by post, personal delivery or email message to address registered by the member with the Association. The Association has no liability towards members who have failed to keep their records up to date.
c) The secretary shall ensure that the notice of the election is also displayed on the notice boards.
d) Duly filled proxy forms shall reach the office of the Returning Officer at least 48 hours prior to the meeting. The forms can be collected from the Association Office.
e) The Secretary will invite nominations to the Managing Committee from the list of members or their representatives, at least two weeks before the date of the proposed election.
f) The members of each block shall nominate representatives from their respective blocks out of which (x) shall be elected to the Managing Committee as the executive committee members.
g) Only members eligible to vote can stand in the elections.
h) If a member is in arrears of maintenance or contribution to any common expenses, sinking fund, etc, he /she shall not be eligible to contest the election and/or vote in any election.
i) Nominations shall be submitted in the prescribed format to the Secretary within the time stipulated in the election notification
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sent to the members or put up in the notice boards of the Association. Members shall be given time of not less than 7 days from the date of intimation of the said notification, for filing the nominations. Nomination format will be made available by the Secretary. Every nomination should be complete in all respects and signed by the member signifying his willingness to get elected to the managing committee. The nomination shall be proposed by one Member and seconded by another. A member shall be entitled to propose only one member for the Managing Committee. However, a member can second more than one member for elections.
j) All such nominations received shall after scrutiny be placed in a sealed envelope and be handed over to the Returning Office appointed for conduct of election by the Secretary.
k) The Management Committee shall in a separate meeting appoint a Returning Officer to conduct and oversee the elections.
l) The Returning Officer may choose to conduct the election by secret ballot or by show of hands.
m) When there is no decision in the choice of committee members, a re‐election shall be conducted within 3 days in respect of only that particular post where there is no decision.
n) The Returning Officer will be sole competent authority to conduct this election and observer normal procedure and announce the results of the election through a written and signed statement and displayed on the notice board.
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o) The Returning Officer appointed shall have no conflict of interest in conduct of the election.
p) On the announcement of the result of the election of the office bearers, the previous office bearers shall be deemed to have demitted their office and the newly elected office bearers shall take charge immediately thereafter.
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CHAPTER 8: OBLIGATIONS, RESPONSIBILITIES AND CONDUCT OF MEMBERS
All Owners and Residents of the XYZ apartment complex are obliged to pay the association all the common expenses relating to the apartment which will include mainly the following:
1. The common expenses towards the care, maintenance, replacement, improvement and additions, to the common facilities and services of the Association and all other expenses incurred in the administration and the Management of the affairs of the Association to meet the objects of the Association and others as mentioned under the definition of common expenses in Chapter 5 of the Act, shall be collected.
2. All members of the Association have a very important duty and obligation to pay the maintenance and any other agreed charges promptly and in full since the efficient functioning of the Association and its management depends on the availability of the finances of the Association.
3. All expenses that may be required for the major replacement of equipment, fittings and fixtures, etc. of the common services and repair and reconstruction of any part of the building shall be collected under heading of Sinking Fund.
4. No apartment owner shall exempt himself from the liability of his/her contributions towards the common expenses by the
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waiver of the use or enjoyment of the common areas and facilities by abandonment of his / her apartment.
5. Maintenance charge/s unpaid by any owner/s, shall constitute a charge on such Owner’s /s’ apartment/s prior to all other charges, except the charge on the apartment for payment of Government or municipal taxes or both.
6. The insurance premium for a policy to cover, repair, replacement and reconstruction etc in case of hurricane, fire, explosion, earthquake and such other hazards and calamities, if decided by a majority of the members at any Annual General Meeting or Special General Meetings of the association, shall be collected as a part of the common expense.
7. All the repairs of internal installation of the units such as water, light, gas, power, sewerage, telephone, air conditioners, sanitary fixtures, doors, locks, windows, lamps and all other accessories belonging to the unit shall be at the expense of the owner concerned.
8. Every owner shall perform promptly and satisfactorily all maintenance and repair/replacement work within his/her own unit, which if omitted, delayed or unsatisfactorily executed, would affect the Association entirely or in a part/s belonging to other owners. It is clearly to be understood that the owner concerned shall be expressly responsible for the damages and liabilities that his/her failure to do so may hinder the functioning of the Association.
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9. All maintenance, repair and replacement of equipments, fixtures and fittings of common areas and facilities and services restricted or not will be carried out by the technicians/tradesman/engineers and such other persons employed or authorized by the Managing committee. No owner will interfere or carry out such work other directly by himself or through his privately employed personnel. An owner, in such cases, shall reimburse the association for any expenditure in redoing, repairing or replacing any common area and facilities for damage caused through his/her own fault, direct or indirect.
10. No owner shall make any additional construction or modification to his unit or installation therein involving demolition of existing structures.
11. All apartments shall be utilized for residential purposes only. The owners of the respective apartments shall have the absolute right to lease such apartment or give it on license or caretaker basis; subject to the covenants and restrictions contained in these bye‐laws. The apartment owner shall not allow his apartment to be used as a Service Apartment, Guest House or hotel purposes.
12. The building name shall always be known as ‘XYZ’ and under no circumstances shall be changed or altered.
13. The owners shall not use the apartments in any way which would diminish the value or utility of the property.
14. The basement car park area and the open car park area shall be used for parking vehicles only by the owner. The owners or their tenants should strictly park their vehicles within the area of
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parking lots allotted to the respective owners. The parking should be done in such a way that movement of other vehicles/s are not in any way hampered or restricted for entry or exit and also not in front of common areas, setbacks and areas like switch board, generator area, etc.
15. The parking areas, terrace and the basement are not to be used by the servants and employees of the owners for living, sleeping and other such activities like drying and airing their/owners clothes , etc.
16. The terrace/basement/electrical room/club house and other such areas should not be used for storing combustible/inflammable and other dangerous articles or belongings.
17. The units and the basements of the owners and the common areas and facilities in the building shall be strictly used for residential purposes. No commercial business activities of any sort shall be conducted in these premises and neither shall any owner in any way lay claims on the common areas except those allotted exclusively for the use of the owners.
18. It is prohibited to throw garbage or trash outside the apartment through the windows, balconies of their respective units. All garbage and trash shall be collected in a container or a bag and deposited near the doors from where it will be cleared by the House Keeping staff. If there is any foul odor emanating from it, please deposit the same in the designated area behind the apartment.
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19. It is the responsibility of the owners to clear up all the debris collected whenever their premises are being taken up for renovation or modification, whether lying inside or outside the apartment building. In the event of failure to clear the debris as aforesaid, the Association shall comply with this regulation at the cost of the owner.
20. No owner shall post any advertisement or posters or sign boards of any kind in or on the building except as authorized by the Managing Committee in writing.
21. Owners shall exercise extreme consideration and care about making noise or the use of musical instruments, radios, televisions and amplifiers that may disturb the others.
22. The Association shall not permit the owners to decorate or alter the exterior of the building under any circumstances.
23. An owner shall grant the right of entry to any of the Managing Committee member/officer or to any person authorized by the Committee in case of any emergency originating in or threatening his unit, whether the owner is present at the time or not.
24. An owner shall permit other Owners or their representatives, when so required, to enter his unit for the purpose of installing, altering or carrying out repairs to the mechanical, electrical, water, sewerage services provided that the request for entry is made in advance and that such entry is at a time convenient to the owner. In case of an emergency, such right of entry shall be immediately permitted.
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25. All the terms and conditions in particular the schedules mentioned in the Agreements to Purchase/Build and Registered Sale Deed shall be binding on each member.
26. It is prohibited to store any explosive or inflammable materials except cooking gas in the kitchen.
27. It is prohibited to burn fire crackers, play with color and do such other acts during festivals or otherwise, within the flats or in the common areas, which cause nuisance to other residents or damage the walls, stairs, swimming pool, lifts or endanger the safety or well‐being of the residents.
28. During festivals, residents can use the common open areas as decided by the management committee to celebrate the festivities and enjoy community living.
29. It is prohibited to store anything that exceeds the allowable/specified Uniformly Distributed Load(UDL) on the floors. The Management Committee shall notify the maximum allowable load as suggested by experts.
30. Members/Residents of the building owning/renting parking space in the basement/open should park their vehicles within their respective markings only and not outside. Members/Residents who do not own or have on rent, parking space, should not park their vehicles in the apartment complex. No member/resident shall rent out his parking area to anyone who is not a resident of the apartment complex.
31. All owners should cooperate to follow the rules of conduct detailed herein and those that may be introduced hereafter by
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the Committee of Management and/or the General Body to ensure better services as a welfare measure.
32. No member shall hang garments and rugs or dust rugs or other linen from windows and/or balconies.
33. The owner of an apartment shall be responsible for payment of taxes, duties or other levies assessed by the municipal authority or other govt. agencies having jurisdiction over the area in which the apartment is situated and for the fulfillment of other obligations cast on such owners by Authority/Agencies.
34. It shall be the primary responsibility of the respective Members/Apartment Owners to ensure that their respective tenants, lessee, servants and /or employee adhere to the Rules/Byelaws of the “ XYZ OWNERS’ ASSOCIATION’.
35. The Management Committee shall be entitled to enforce any or the necessary restrictions on such defaulting tenants, employees, servants or residents of the Apartment Complex.
36. No pets shall be allowed in the Apartments.
37. The Manager of the Association shall be informed in writing before any interior work is started in the flat at least three days prior to such commencement of works. In case of any damages to the property of the apartment arising out of such works, the managing committee is authorized to collect penalty at a rate decided by the committee.
38. Interior/other works shall be undertaken only during 09:00 hours to 18:00 hours on working days i.e. Monday to Saturday. No
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interior works shall be undertaken on Sundays and National Holidays.
39. Managing Committee will be authorized to collect any penalties towards damage of property by tenants during their stay, moving in and moving out from the owners.
40. Workers engaged for interior or civil work shall submit their names to the Security Office and obtain necessary passes for entry into the apartment. The workers so engaged shall not be permitted to stay in the premises beyond working hours.
41. Residents should get security photo identity cards issued for all ….
42. Clothing and other items should not be hung on balcony railings for drying. Rods cannot be constructed outside railings to hang clothes.
43. Flower pots or similar artifacts should not be kept at railing side walls.
44. Debris generated during private works and private functions shall be disposed off beyond the premises in the right place under own arrangements. Debris should not be thrown outside the windows/balcony or onto any other adjacent property.
45. Drinking, smoking and spitting in common areas including lobbies, basements, garden, etc is prohibited. Spoiling lifts, walls and other common areas by scratching, scribbling, pasting posters etc is also prohibited. Residents shall report any such incident to
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the Association for appropriate action against those engaging in such vandalism.
46. For any private function inside the complex (except the first house warming ceremony for the apartment), a refundable deposit as may be decided by the committee from time to time shall be furnished. This is to ensure compensation against physical damage or lack of cleaning after the function. There will also be a nominal charge associated for the usage of common amenities which will be deposited into the maintenance fund.
47. Pathways alone should be used while walking in premises.
48. Sound while partying, playing music, TV, etc should always be within permissible limits and should not be an inconvenience to your neighbors.
49. Misuse of fire alarm system is strictly prohibited.
50. Keeping the safety of children in mind, the children are restricted and should not be allowed to play on the terrace, roads, near swimming pool, gym, etc. Playing to be restricted to designated playing areas only.
51. Vehicles should not be driven fast in the lobby and common areas.
52. Cooking is not permitted in the common areas.
53. Terrace cannot be used for putting personal items – like satellite dishes, hanging clothes, solar panels, etc.
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54. No unauthorized modification to the structure is permitted. This is especially relevant for beams as this will affect the structural stability of the buildings. Permission has to be sought from the association for any interior modification and the same shall be duly certified by a qualified engineer or architect confirming that it shall not endanger the structure. The Management Committee is authorized to prevent modifications which have not been approved physically.
55. Visitor’s cars are not to be parked inside the complex and their entry is prohibited at all times.
56. Stickers shall be provided to all residents for the vehicles. If original sticker is lost, there will be a penalty for the duplicate. If the sticker is misused by somebody, the owner of the sticker is liable for any damages/penalties arising out of the violation.
57. Any vendors who want to market/sell their products can do so by taking permission from the Management Committee in advance. There will be a refundable deposit as decided by the committee from time to time to compensate any damage happening during the process. Also a nominal fee will be charged which will be deposited into the maintenance fund.
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CHAPTER 9: GENERAL 1. At the point of inception of the Association and thereon, the
Association does not carry over any liabilities arising out of the sale agreement of the apartment. This needs to be sorted out between the buyer and seller
2. The Association shall not be liable nor can any claim be raised against the Association for any service provided by the Members in terms of these Bye Laws. The Member shall be solely responsible for his/her acts or omissions and shall keep the Association indemnified against all claims against the Association provided that such claims emanate from the arrangement between the Association and the Member.
3. When the ownership of the apartment changes, no deposit or advances paid by the owner shall be refunded.
4. The Office of the Association shall have fixed working hours as may be decided by the Managing Committee from time to time.
5. The Association shall have a common seal which shall be in the custody of the Treasurer and shall be used only under the authority of resolution of the managing committee and every deed of instrument to which the seal is affixed shall be attested for or on behalf of the association by two members of the management committee or any other person authorized by the Association in that behalf.
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6. These byelaws may be amended by the association in a duly constituted meeting for such purpose and no amendment shall take effect unless approved by the members representing at least 2/3rd of Members from each Block. All matters pertaining to such dissolution shall be as per Section 22 of the Societies Registration Act.
7. In the event of any “dispute” between any of the Members of the Association or between the Association and any third party, the same shall be referred to Arbitration, The Arbitration proceedings shall be in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and the parties shall submit to the exclusive jurisdiction of the Bangalore Courts.
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