Ownership, Heritability and Transferability of Apartments

Execution of sub-lease or/and terms and conditions of sub-lease

§7

Summary

(1) Where any land is given on lease or ground rent by a person includes firm, company, any local body, Trust, Corporation, Development Authority etc. (hereafter in this section referred to as the lessor) to another person (hereafter in this section referred to as the lessee, which term shall include a person in whose favour a sub-lease of such land has been granted), and any building that has been constructed on such leasehold land by the lessee or by any other person authorised by him or claiming through him, such lessee shall grant in respect of the land as many sub-leases as there are apartments in such building and shall execute separate deeds of sub-lease in respect of such land in favour of each apartment owner before handing over the possession of apartment in such building to him. The lessor shall be duty bound to supply the plans and other legal documents to the lessee. (a) in the case of a building constructed before the commencement of this Act, within three months from such commencement; or (b) in the case of a building constructed after the commencement of this Act, within three months from the date on which the possession of any apartment is such building is delivered to him: Provided that the sub-lessee shall have the same rights and liabilities as the lease to the extent of the area given under sub-lease. That is the lessee has transferred all his right to the sub-lessee including the right of transfer for the remaining period of sub-lease and so forth: Provided further that no sub-lease in respect of any land shall be granted except on the same terms and conditions on which the lease in respect of the land has been granted by the lessor and no additional terms and conditions shall be imposed by the lessee except with the previous approval of the lessor. (2) Where the lessee has any reason to suspect that there has been any breach of the terms and conditions of the sub-lease referred to in sub-section (1), he may himself inspect the land on which the building containing the concerned apartment has been constructed, or may authorize one or more persons to inspect such land and make a report as to whether there had been any breach of the terms and conditions of any sub-lease in respect of such land and, if so, the nature and extent of such breach, and for this purpose, it shall be lawful for the lessee or any person authorised by him to enter in to, and to be in, the lane in relation to which such breach has been or is suspected to have been committed. (3) Where the lessee or any person authorized by him makes an inspection of the land referred to in sub-section (1), he shall record in writing his findings on such inspection a true copy of which shall be furnished to the apartment owner by whom such breach of the terms and conditions of sub-lease in respect of the land appurtenant to the apartment owned by him has been committed (hereinafter referred to as the defaulting apartment owner) and where such findings indicate that there had been any breach of the terms and conditions of the sublease in respect of such land, the lessee may, by a notice in writing, require the defaulting apartment owner to refrain from committing any breach of the terms and conditions of the sub-lease in respect of such land, or to pay in lieu thereof such composition fees as may be specified in the notice in accordance with such scales of compositions fees as may be prescribed. (4) The defaulting apartment owner who is aggrieved by any notice served on him by the lessee under sub-section (3) may within thirty days from the date of service of such notice, prefer an appeal to the competent authority either challenging the finding of the lessee or any person authorized by him or disputing the amount of composition fees as specified in the notice, and the competent authority may, after giving the parties a reasonable opportunity of being heard, confirm, alter or reverse those finding or may confirm, reduce or increase the amount of composition fees or set aside the notice. (5) Where, on the breach of any terms and conditions of any sub-lease in respect of any land, any composition fees become payable, the defaulting apartment owners shall be deemed to have been guilty of such breach and in default of payment thereof it shall be lawful for the lessee to recover the amount of the composition fees from the defaulting apartment owner as an arrear of land revenue. (6) Where any composition fees are paid whether in pursuance of the notice served under sub-section (3) or in accordance with the decision of the competent authority or Appellate Authority on appeal, no further action shall be taken by the lessee for the breach of the terms and conditions of the sub-lease in respect of the land in relation to which payment of such composition fees has been made. (7) Where any lessee omits or fails to take any action either in accordance with the provisions of sub-section (2) or sub-section (3) the lessor may, in the first instance, require the lessee by a notice in writing to take action against the defaulting apartment owner under sub-section (2) or, as the case may be, under sub-section (3) within a period of ninety days from the date of service of such notice, and in the event of the omission or failure of the lessee to do so within such period, the lessor may himself take action as contained in subsection (2) or sub-section (3) and the provisions of sub-section (4) to sub-section (6) shall, as far as may be, apply to any action taken by him as if such action has been taken by the lessee. (8) For the removal of doubts, it is hereby declared that no work in any apartment by the owner thereof shall be deemed to be a breach of the terms of the sub-lease in respect of the land on which the building containing such apartment has been constructed unless the work is prohibited by section 8.

(1) Where any land is given on lease or ground rent by a person includes firm, company, any local body, Trust, Corporation, Development Authority etc. (hereafter in this section referred to as the lessor) to another person (hereafter in this section referred to as the lessee, which term shall include a person in whose favour a sub-lease of such land has been granted), and any building that has been constructed on such leasehold land by the lessee or by any other person authorised by him or claiming through him, such lessee shall grant in respect of the land as many sub-leases as there are apartments in such building and shall execute separate deeds of sub-lease in respect of such land in favour of each apartment owner before handing over the possession of apartment in such building to him. The lessor shall be duty bound to supply the plans and other legal documents to the lessee. (a) in the case of a building constructed before the commencement of this Act, within three months from such commencement; or (b) in the case of a building constructed after the commencement of this Act, within three months from the date on which the possession of any apartment is such building is delivered to him: Provided that the sub-lessee shall have the same rights and liabilities as the lease to the extent of the area given under sub-lease. That is the lessee has transferred all his right to the sub-lessee including the right of transfer for the remaining period of sub-lease and so forth: Provided further that no sub-lease in respect of any land shall be granted except on the same terms and conditions on which the lease in respect of the land has been granted by the lessor and no additional terms and conditions shall be imposed by the lessee except with the previous approval of the lessor. (2) Where the lessee has any reason to suspect that there has been any breach of the terms and conditions of the sub-lease referred to in sub-section (1), he may himself inspect the land on which the building containing the concerned apartment has been constructed, or may authorize one or more persons to inspect such land and make a report as to whether there had been any breach of the terms and conditions of any sub-lease in respect of such land and, if so, the nature and extent of such breach, and for this purpose, it shall be lawful for the lessee or any person authorised by him to enter in to, and to be in, the lane in relation to which such breach has been or is suspected to have been committed. (3) Where the lessee or any person authorized by him makes an inspection of the land referred to in sub-section (1), he shall record in writing his findings on such inspection a true copy of which shall be furnished to the apartment owner by whom such breach of the terms and conditions of sub-lease in respect of the land appurtenant to the apartment owned by him has been committed (hereinafter referred to as the defaulting apartment owner) and where such findings indicate that there had been any breach of the terms and conditions of the sublease in respect of such land, the lessee may, by a notice in writing, require the defaulting apartment owner to refrain from committing any breach of the terms and conditions of the sub-lease in respect of such land, or to pay in lieu thereof such composition fees as may be specified in the notice in accordance with such scales of compositions fees as may be prescribed. (4) The defaulting apartment owner who is aggrieved by any notice served on him by the lessee under sub-section (3) may within thirty days from the date of service of such notice, prefer an appeal to the competent authority either challenging the finding of the lessee or any person authorized by him or disputing the amount of composition fees as specified in the notice, and the competent authority may, after giving the parties a reasonable opportunity of being heard, confirm, alter or reverse those finding or may confirm, reduce or increase the amount of composition fees or set aside the notice. (5) Where, on the breach of any terms and conditions of any sub-lease in respect of any land, any composition fees become payable, the defaulting apartment owners shall be deemed to have been guilty of such breach and in default of payment thereof it shall be lawful for the lessee to recover the amount of the composition fees from the defaulting apartment owner as an arrear of land revenue. (6) Where any composition fees are paid whether in pursuance of the notice served under sub-section (3) or in accordance with the decision of the competent authority or Appellate Authority on appeal, no further action shall be taken by the lessee for the breach of the terms and conditions of the sub-lease in respect of the land in relation to which payment of such composition fees has been made. (7) Where any lessee omits or fails to take any action either in accordance with the provisions of sub-section (2) or sub-section (3) the lessor may, in the first instance, require the lessee by a notice in writing to take action against the defaulting apartment owner under sub-section (2) or, as the case may be, under sub-section (3) within a period of ninety days from the date of service of such notice, and in the event of the omission or failure of the lessee to do so within such period, the lessor may himself take action as contained in subsection (2) or sub-section (3) and the provisions of sub-section (4) to sub-section (6) shall, as far as may be, apply to any action taken by him as if such action has been taken by the lessee. (8) For the removal of doubts, it is hereby declared that no work in any apartment by the owner thereof shall be deemed to be a breach of the terms of the sub-lease in respect of the land on which the building containing such apartment has been constructed unless the work is prohibited by section 8.

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