Owners of Bigger Apartments Must Pay More Maintenance: Bombay HC Sets Important Precedent.

Owners of Bigger Apartments Must Pay More Maintenance: Bombay HC Sets Important Precedent.

In a recent notable ruling, the Bombay High Court has confirmed that owners of larger apartments in housing complexes governed under the Maharashtra Apartment Ownership Act, 1970, must pay maintenance charges proportionally higher than those with smaller flats. This landmark decision came out of a dispute at Treasure Park, a Pune residential complex, where the managing body had resolved to collect equal maintenance fees from all flat owners regardless of apartment size.

The dissenting smaller flat owners challenged this, citing the legal mandate that maintenance costs should be shared based on each apartment owner's undivided share in the common areas, a share that depends on the apartment’s carpet area. Initially upheld by the deputy registrar of co-operative societies and later by the Co-operative Court in Pune, this principle finally found strong endorsement from Justice Milind Jadhav at the Bombay High Court, who dismissed the appeal of larger flat owners insisting on equal fees.

This decision highlights a crucial legal distinction between the Maharashtra Apartment Ownership Act, 1970, and the Maharashtra Ownership Flats Act, 1971. While the latter governs most cooperative societies and generally charges maintenance equally per flat, the 1970 Act gives apartment owners actual ownership of an undivided share of the land and common property, making them co-owners of these shared spaces. Hence, maintenance charges must be proportionate to the size of the apartment because larger flats come with a bigger undivided interest in the common areas.

The larger flat owners argued that maintenance costs cover communal amenities used equally by all residents, and therefore fees should be uniform. However, the court reinforced that the law and the complex's own declaration support proportional payment, underpinning a fair allocation based on ownership share rather than usage assumptions.

For residents and stakeholders in apartment complexes governed by the 1970 Act, this ruling establishes a clear legal framework: maintenance fees reflect ownership shares tied to apartment size, not just flat count. This ensures equitable distribution of maintenance responsibilities aligned with each owner’s stake in the property.

This ruling serves as an important precedent across Maharashtra and possibly beyond, clarifying maintenance fee structures and reinforcing the legal nuances between differently governed apartment models.