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The Himachal Pradesh Apartment Ownership Act,1978

Himachal Pradesh · state statute
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THE HIMACHAL PRADESH APARTMENT OWNERSHIP ACT, 1978 
ARRANGEMENT OF SECTIONS  
Sections: 
1.  Short title, extent and commencement. 
2.  Application of the Act. 
3.  Definitions. 
4.  A member of a co-operative society to be the ow ner of the 
apartment for a limited purpose. 
5.  An apartment to be transferable and heritable p roperty. 
6.  Benamidar of an apartment to be deemed to be th e real owner 
thereof. 
7.  Common areas and facilities. 
8.  Compliance with bye-laws, covenants etc. 
9.  Certain work prohibited. 
10.  Encumbrances against apartments. 
11.  Common profits and expenses. 
12.  Contents of declaration. 
13.  A declaration or an instrument to be submitted  before the 
competent authority and to be dealt with by him. 
14.  Withdrawal from the provisions of the Act. 
15.  Instrument of declaration etc. compulsorily re gisterable. 
16.  Bye-laws. 
17.  Separate assessment. 
18.  Charge for property of common expenses. 
19.  Liability for unpaid common expenses. 
20.  Penalty. 
21.  Power to make rules. 
22.  Rules and bye-laws to be laid before State Leg islature. 
23.  Power to remove difficulty. 
24.  Removal of doubts. 
25.  Severability. 
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 H.P. APARTMENT OWNERSHIP ACT, 1978 2  
 
THE HIMACHAL PRADESH APARTMENT OWNERSHIP 
ACT, 1978 
(ACT NO. 41 OF 1978) 1 
(Received the assent of the President of India on t he 18 th   December, 
1978 and was published in R.H.P. Extra., dated the 6 th   January, 1979, 
P.93-99). 
An Act to provide for the ownership of an individua l apartment and to 
make such apartment heritable and transferable prop erty, in 
Himachal Pradesh.  
BE it enacted by the Legislative Assembly of Himachal Pradesh in the 
Twenty-ninth Year of the Republic of India, as follows:- 
1. Short title, extent and commencement .-(1) This Act may be 
called the Himachal Pradesh Apartment Ownership Act, 1978. 
(2) It extends to the whole of Himachal Pradesh.  
(3) This section shall come into force at once; and  the remaining 
provisions of this Act shall come into force in such areas, and on such dates as 
the State Government may, by notification in the Of ficial Gazette, appoint; 
and different dates may be appointed for different areas.    
2. Application of the Act .- This Act applies only to property, the sole 
owner or all the owners of which submit the same to the provisions of this Act 
by duly executing and registering a declaration set ting out the particulars 
referred to in section 12: 
Provided that no property shall be submitted to the  provisions of this 
Act, unless it is mainly used or is proposed to be used, for residential 
purposes.  
3. Definitions .- In this Act, unless the context otherwise requires,-    
(a)  "apartment" means a part of the property havin g a direct exit  to 
a road, street or highway or to a common area leadi ng to  such 
road,  street or highway which together with its un divided 
interest  in the common areas and facilities forms an 
independent residential  unit;  
(b)  "association of apartment owners" means the as sociation 
formed  in accordance with the provisions made in t he 
bye-laws;    
(c)  "building" means a building containing two or more apartments  
or  more than one building each containing two or m ore 
                                                 
1. For the Statement of Objects and Reasons see R. H. P. Extra., dated 16-9-1978, P. 
1206. For its Authoritative Hindi text see R.H.P. E xtra., dated 1.6.1998, p. 1993-
2001. 
 H.P. APARTMENT OWNERSHIP ACT, 1978 3  
 
apartments  comprised in the same property;    
(d)  "common areas and facilities" includes-    
(1)  the land on which the building is located and all 
easements,  rights and appurtenances belonging to t he 
land and the  building,    
(2)  the foundations, columns, girders, beams, supp orts, main 
walls,  roofs, halls, corridors, lobbies, stairs, s tair-ways, 
fire-escapes  and entrances and exits of the building,    
(3)  the easements, cellars, yards, gardens, parkin g areas,  
shopping centres, schools, garages and storage spaces,    
(4)  the premises for the lodging of janitors or pe rsons 
employed  for the management of the property,    
(5)  installations of common services, such as powe r, light, 
gas, hot  and cold water, heating, refrigeration, 
air-conditioning,  sewerage, etc.,    
(6)  the elevators, tanks, pumps, motors, compresso rs, pipes 
and  ducts and in general all apparatus and install ations 
existing  for the common use,    
(7)  such other common facilities as may be special ly 
provided for  in the declaration, 
(8)  all other parts of the property necessary or c onvenient to 
its  existence, maintenance and safety, or normally  in 
common  use;    
(e)  "common expenses" means expenses of administra tion, 
maintenance,  repair or replacement of the common a reas and 
facilities and all  other sums assessed against the  apartment 
owners by the association  of apartment owners;    
(f)  "common profits" means the balance of all inco me, rents, 
profits  and revenues from the common areas and fac ilities 
remaining  after the deduction of the common expenses;    
(g)  "competent authority" means the estate manager  as notified by 
the  Housing Department of the Government of Himach al 
Pradesh;    
(h)  "declaration" means the instrument by which th e property is 
submitted to the provisions of this Act as hereinafter provided;  
(i)  "limited common areas and facilities" means th ose common 
areas  and facilities which may be designated in th e declaration 
as reserved for use of certain apartment or apartme nts to the 
exclusion of  other apartments;    
 H.P. APARTMENT OWNERSHIP ACT, 1978 4  
 
(j)  "owner" in relation to a property or part ther eof or an apartment,  
includes, for the purposes of this Act excepting th e provisions 
of  sub-section (1) of section 5 thereof, a lessee of such property 
or  part or of such apartment, where the lease is f or a period of 
twenty  years or more;    
(k)  "prescribed" means prescribed by rules made un der this Act; 
and  
(l)  "property" comprises the land, the building an d the common 
areas  and facilities.    
4. A member of a co-operative society to be the own er of the 
apartment for a limited purpose .-Where a co-operative society is the owner 
of a property or any part thereof, a member of such society in legal occupation 
of an apartment comprised in such property or such part shall be deemed to be 
the owner of such apartment within the meaning of t he provisions of this Act 
excepting those of sub-section (1) of section 5. 
5. An apartment to be transferable and heritable pr operty .-(1) 
Each apartment owner shall be entitled to the exclu sive ownership and 
possession of his apartment.    
(2) An apartment, together with its undivided interests in the common 
areas and facilities, shall constitute heritable an d transferable immovable 
property within the meaning of any law for the time being in force:    
Provided that no apartment and the percentage of undivided interest in 
the common areas and facilities appurtenant to such  apartment shall be 
partitioned or sub-divided for any purpose whatsoever. 
(3) Notwithstanding anything contained in the Trans fer of Property 
Act, 1882 (4 of 1882), or in any other law for the time being in force, but 
subject to the provisions of section 14 of this Act, any person,-    
(a)  acquiring by purchase, or 
(b)  taking lease of, for a period of twenty years or more, an 
apartment  comprised in property submitted to the provisions of 
this Act,  shall,-    
(i)  in respect of the said apartment, be subject t o the 
provisions of this Act, and    
(ii)  execute and register the said apartment in su ch form, in 
such  manner and within such period as may be 
prescribed, undertaking  to comply, strictly with t he 
bye-laws and with the covenants,  conditions and 
restrictions set forth in the declaration.    
(4) Any transfer made in contravention of the provi sions of 
sub-section (3) shall be void.    
 H.P. APARTMENT OWNERSHIP ACT, 1978 5  
 
6. Benamidar of an apartment to be deemed to be the  real owner 
thereof .- Where an apartment is transferred to one person for a consideration 
paid or provided by another person for his own bene fit, the transferee shall, 
notwithstanding anything in the Transfer of Property Act, 1882 (4 of 1882), or 
in the Indian Trusts Act, 1882 (2 of 1882), or in a ny other law for the time 
being in force, be deemed to be the real owner of such apartment, and no court 
shall entertain any claim of the person, paying or providing the consideration 
for title in such apartment on the ground that he d id not intend to pay or 
provide such consideration for the benefit of the t ransferee and that transferee 
is his benamidar, or on any other ground. 
7. Common areas and facilities. - (1) Each apartment owner shall be 
entitled to an undivided interest in the common are as and facilities in the 
percentage expressed in the declaration.    
(2) The percentage of the undivided interest of eac h apartment owner 
in the common areas and facilities as expressed in the declaration shall not be 
altered without the consent of all the apartment ow ners expressed in an 
amended declaration duly executed and registered as provided in this Act. The 
percentage of the undivided interest in the common areas and facilities shall 
not be separated from the apartment to which it app ertains, and shall be 
deemed to be conveyed or encumbered with the apartm ent even though such 
interest is not expressly mentioned in the conveyance or other instrument.    
(3) The common areas and facilities shall remain un divided, and no 
apartment owner or other person shall bring any act ion for partition or 
division of any part thereof, unless the property h as been withdrawn from the 
provisions of this Act.  
(4) Each apartment owner may use the common areas a nd facilities 
for the purpose for which they are intended without  hindering or encroaching 
upon the lawful rights of the other apartment owners.    
(5) The work relating to the maintenance, repair an d replacement of 
the common areas and facilities and the making of a ny additions or 
improvements thereto shall be carried out in accordance with the provisions of 
this Act and the bye-laws made thereunder.    
(6) The association of apartment owners shall have irrevocable right, 
to be exercised by the manager or the board of mana gers on behalf of the 
association, with such assistance as the manager or  the board of managers, as 
the case may be, considers necessary, to have acces s to each apartment from 
time to time during reasonable hours, for the maint enance, repair and 
replacement of any of the common areas and faciliti es therein, or accessible 
therefrom, or for making emergency repairs therein to prevent any damage to 
the common areas and facilities or to other apartments. 
8. Compliance with bye-laws, covenants etc .- Each apartment 
owner shall comply strictly with the bye-laws and w ith the covenants, 
conditions and restrictions set forth in the declar ation. Failure to comply with 
 H.P. APARTMENT OWNERSHIP ACT, 1978 6  
 
any of the same shall be a ground for an action to recover damages or for 
other relief or reliefs at the instance of the mana ger or the board of managers 
on behalf of the association of apartment owners or , in a proper case, by an 
aggrieved apartment owner. 
9. Certain work prohibited .- No apartment owner shall do any work 
which would be prejudicial to the soundness or safe ty of the property or 
would reduce the value thereof or impair any easeme nt or hereditament or 
shall add any material structure or excavate any additional basement or cellar. 
10. Encumbrances against apartments .- During the period the 
property remains subject to this Act, no encumbranc e of any nature shall be 
created against the property. During such period an  encumbrance may, 
however, be created only against each apartment and  the percentage of 
undivided interest in the common areas and faciliti es appurtenant to each 
apartment, in the same manner as in relation to any  other separate parcel of 
property subject to individual ownership. 
11. Common profits and expenses .- The common profits of the 
property shall be distributed among, and the common  expenses shall be 
charged to, the apartment owners according to the percentage of the undivided 
interest in the common areas and facilities. 
12. Contents of declaration .- (1) The declaration referred to in 
section 2 shall be submitted in such form and in su ch manner as may be 
prescribed, and shall contain the following particulars, namely:-    
(a)  description of the property;  
(b)  nature of interest of the owner or owners in t he property;    
(c)  existing encumbrance, if any, affecting the pr operty;    
(d)  description of each apartment containing its l ocation, 
approximate area, number of rooms, immediate common area to 
which it  has access, and any other data necessary for its proper 
identification;    
(e)  description of the common areas and facilities ;    
(f)  description of the limited common areas and fa cilities, if any,  
stating to which apartments their use is reserved;    
(g)  value of the property and of each apartment, a nd the  percentage 
of undivided interest in the common areas  and facilities to each 
apartment and its owner for all  purposes, including voting; and  
(h)  such other particulars as may be prescribed.  
(2) The declaration referred to in sub-section (1) may be amended 
under such circumstances and in such manner as may be prescribed. 
13. A declaration or an instrument to be submitted before the 
competent authority and to be dealt with by him .- (1) Any declaration 
 H.P. APARTMENT OWNERSHIP ACT, 1978 7  
 
referred to in section 2 or any amendment thereto o r any instrument referred 
to in sub-section (3) of section 5, shall, in the f irst instance, be submitted, in  
duplicate, within fifteen days from the date of its  execution, to the competent 
authority along with copies of site plans, building  plans and relevant title 
deeds.  
(2) On receipt of a declaration or an amendment the reto or an 
instrument referred to in sub-section (1), the competent authority shall,-    
(a)  after holding such inquiry, as it may consider  necessary for the 
purpose, examine the declaration, the amendment or the 
instrument, as the case may be, to ascertain whether-    
(i)  the property concerned comes within the purvie w of this  
Act, and  
(ii)  the declaration, the amendment or the instrum ent is in  
order;    
(b)  by an order in writing, giving reasons therefo r, accept  or reject 
the declaration, the amendment or the  instrument; and    
(c)  in case of acceptance, immediately return the  declaration, the 
amendment or the instrument along  with all the enc losures to 
the owner or owners, as  the case may be, for regis tration, 
within fifteen  days of the date of return.    
(3) Any person, being aggrieved by an order of reje ction, may, within 
thirty days from the date of such order or within s uch further period as the 
appellate authority may allow on sufficient ground being shown, appeal to the 
State Government, whose order on the appeal shall be final.    
(4) Any order referred to in clause (b) of sub-sect ion (2) or in 
sub-section (3) shall not be called into question in any court of law. 
14. Withdrawal from the provisions of the Act .- (1) All the 
apartment owners may withdraw property from the pro visions of this Act by 
an instrument executed to that effect.    
(2) Upon the property being withdrawn from the prov isions of this 
Act, it shall be deemed to be owned in common by th e apartment owners and 
the share of each such owner in the property shall be the percentage of 
undivided interest previously owned by such owner i n the common areas and 
facilities.   
 (3) Any encumbrance affecting any of the apartment s shall be 
deemed to be transferred in accordance with the exi sting priority to the 
percentage of the undivided interest of the apartment owner in the property as 
provided herein.   
15. Instrument of declaration etc. compulsorily reg isterable .- (1) 
All instruments relating to the declaration or any amendment thereto referred 
to in section 12 of the withdrawal of a property from the provisions of this Act 
 H.P. APARTMENT OWNERSHIP ACT, 1978 8  
 
referred to in section 14 or the instrument referre d to in sub-section (3) of 
section 5 shall be deemed to be instruments compuls orily registerable within 
the meaning of clause (d) of sub-section (1) of sec tion 17 of the Registration 
Act, 1908 (16 of 1908).   
(2) The withdrawal provided in section 14 shall in no way bar the 
subsequent re-submission of the property to the provisions of this Act. 
16. Bye-laws .-(1) Every property shall be administered in accor dance 
with such bye-laws as may be framed by the competen t authority with the 
prior approval of the State Government.    
(2) The bye-laws shall provide for the following am ongst other 
matters, namely:-    
(a)  the manner in which the association of apartme nt owners  is to 
be formed, the election of a board of managers from  amongst 
the apartment owners, the number of  persons consti tuting the 
board, the number of members  of such board; to ret ire 
annually, the powers and  duties of the board; the honorarium, if 
any, of the  members of the board, the method of re moval from 
office  of members of the board; the powers of the board to  
engage the services of a secretary or manager,  del egation of 
powers and duties to such secretary or  manger;    
(b)  method of calling meeting of the apartment own ers and the  
number to constitute a quorum;    
(c)  election of a president who shall preside over  the  meetings of 
the board and of the association of  apartment owners;   
(d)  maintenance, repair and replacement of the com mon areas  and 
facilities and payments therefor;    
(e)  manner of collecting share of the common expen ses from  the 
apartment owners;   
(f)  any other matter considered to be necessary fo r the 
administration of the property. 
17. Separate assessment .- Notwithstanding anything to the contrary 
in any other law for the time being in force, each apartment (of a property 
including its percentage of undivided interest in t he common areas and 
facilities thereof) the owner of which does not own  any other apartment in 
such property, shall be deemed to be a separate uni t for the purpose of 
assessment of municipal rates and taxes. 
18. Charge for property of common expenses .- All sums assessed 
by the association of apartment owners for the shar e of the common expenses 
chargeable to any apartment shall constitute a char ge on such apartment prior 
to all other charges, except charge, if any, on the  apartment for payment of 
municipal rates and taxes. 
 H.P. APARTMENT OWNERSHIP ACT, 1978 9  
 
19. Liability for unpaid common expenses .- Upon the sale of an 
apartment the purchaser of the apartment shall be j ointly and severally liable 
with the vendor for all unpaid assessments, against  the latter for his share of 
the common expenses upto the time of the sale.    
20. Penalty .-(1) If the owner of any apartment subject to the 
provisions of this Act, contravenes-    
(a)  any of the provisions of section 9 or section 10,   
(b)  any bye-law, that may be framed by the compete nt  authority, or  
(c)  any covenant, condition or restriction set for th in the  
declaration to which he is subject or a party, he s hall, at the 
instance of the manager, or the board of managers o n behalf of 
the association of the apartment owners, an aggrieved apartment 
owner or in a proper case, the competent authority,  on 
conviction before a magistrate, be liable to a fine  which may 
extend to rupees one thousand, or to a term of impr isonment 
which may extend to six months, or to both, and in case of 
continuing contravention, to additional fine which may extend 
to rupees fifty for every day during which such con travention 
continues after conviction for the first such contravention.    
(2) Any contravention punishable under sub-section (1) may, where 
prosecution lies or is instituted at the instance o f or by the manager or the 
board of managers on behalf of the association of t he apartment owners, be 
compounded by such association, either before or af ter the institution of the 
prosecution, on payment of, for credit to its fund, such sum as it may think fit.  
(3) The provisions of this section shall apply with out prejudice to 
those of sections 8, 18, and 19. 
21. Power to make rules .- The State Government may, by 
notification in the Official Gazette, make 1 rules for carrying out the purposes 
of this Act.   
22. Rules and bye-laws to be laid before State Legi slature .-Every 
rule or bye-laws made under this Act shall be laid, as soon as may be after it is 
made, before the Legislative Assembly, while it is in session for a total period 
of not less than fourteen days which may be compris ed in one session or in 
two or more successive sessions, and if, before the  expiry of the session in 
which it is so laid or the session immediately foll owing, the Assembly makes 
any modification in the rules or bye-laws, as the c ase may be, or decides that 
the rules or bye-laws should not be made, the rule or bye-laws shall thereafter, 
have effect only in such modified form or be of no effect, as the case may be, 
so, however, that any such modification or an annul ment shall be without 
                                                 
1. Rules framed vide notification No. Avas-1-A(3) 5 79 dated 18 th  April, 1980 
published in RHP dated 12-7-1980 P. 741-742. 
 H.P. APARTMENT OWNERSHIP ACT, 1978 10  
 
prejudice to the validity of anything previously do ne under that rule or 
bye-laws. 
23. Power to remove difficulty .- If any difficulty arises in giving 
effect to the provisions of this Act the Government may, by order published in 
the Official Gazette, make such provisions or give such directions not 
inconsistent with the provisions of this Act as may appear to it to be necessary 
or expedient for the removal of such difficulty. 
24. Removal of doubts .- For the removal of doubts, it is hereby 
declared that the provisions of the Transfer of Property Act, 1882 (4 of 1882), 
shall in so far as they are not inconsistent with t he provisions of this Act, 
apply to every apartment together with its undivide d interest in the common 
areas and facilities as those provisions apply in r elation to any other 
immovable property.  
25. Severability .- If any provision of this Act or any section, 
sentence, clause, phrase or word, or application th ereof in any circumstances 
is held invalid, the validity of the remainder of t his Act and of the application 
of any such provision, section, sentence, clause, p hrase or word, in any other 
circumstances shall not be affected thereby.   
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