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        Case ID :

        2010 (8) TMI 816 - SC - Indian Laws

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        Court rules stilt parking not 'garages'; cannot be sold separately. Promoter's rights limited. The court concluded that a stand-alone 'garage' is not considered a 'flat' within the meaning of the relevant statute. Additionally, stilt parking spaces ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Court rules stilt parking not 'garages'; cannot be sold separately. Promoter's rights limited.

                            The court concluded that a stand-alone 'garage' is not considered a 'flat' within the meaning of the relevant statute. Additionally, stilt parking spaces do not qualify as 'garages' and are deemed part of 'common areas and facilities.' As such, the promoter cannot sell stilt parking spaces independently, and the rights of the promoter are limited to charging for common areas based on flat area. The court affirmed the dismissal of the appeals, upholding that stilt parking spaces are integral common areas and cannot be sold separately by the promoter.




                            Issues Involved:
                            1. Whether a stand-alone 'garage' is a 'flat' within the meaning of Section 2(a-1) of MOFA.
                            2. Whether stilt parking space/open parking space is a 'garage'.
                            3. Whether stilt parking space/open parking space is part of 'common areas and facilities'.
                            4. Rights of the promoter vis-`a-vis society in respect of stilt parking spaces.

                            Detailed Analysis:

                            1. Whether a Stand-Alone 'Garage' is a 'Flat' within the Meaning of Section 2(a-1) of MOFA:
                            The court examined the definition of 'flat' under Section 2(a-1) of MOFA, which includes a separate and self-contained set of premises used for residence, office, showroom, shop, godown, or for carrying on any industry or business (and includes a garage). The court concluded that the term 'flat' must be a separate unit conforming to the description capable of being used for one of these purposes. The bracketed phrase '(and includes a garage)' does not bring in 'garage' by itself within the meaning of the word 'flat'. The court stated that if a stand-alone 'garage' were intended to be a 'flat', it would have been explicitly mentioned. Therefore, a stand-alone 'garage' is not a 'flat' within the meaning of Section 2(a-1) of MOFA.

                            2. Whether Stilt Parking Space/Open Parking Space is a 'Garage':
                            The court noted that the term 'garage' is not defined in MOFA and referred to various dictionary definitions and legal interpretations. A 'garage' generally means a building for housing a motor vehicle or vehicles. The court concluded that an open parking space does not qualify as a 'garage' within the meaning of Section 2(a-1). A 'garage' must have a roof and walls on three sides. The court held that stilt parking spaces, which are open on multiple sides, do not meet this definition and therefore cannot be considered 'garages'.

                            3. Whether Stilt Parking Space/Open Parking Space is Part of 'Common Areas and Facilities':
                            The court referred to the definition of 'common areas and facilities' under Section 3(f) of the Maharashtra Apartment Ownership Act (MAOA), which includes parking areas. The court found no justifiable reason to exclude parking areas from the purview of 'common areas and facilities' under MOFA. The court rejected the argument that the promoter could exclude parking spaces from 'common areas' by not prescribing them as such. The court concluded that stilt parking spaces are part of 'common areas and facilities' under MOFA.

                            4. Rights of the Promoter vis-`a-vis Society in Respect of Stilt Parking Spaces:
                            The court held that since stilt parking spaces are part of 'common areas', the promoter has no right to sell them independently. The only right the promoter has is to charge the cost of common areas in proportion to the carpet area of the flat from each flat purchaser. The court emphasized that MOFA restricts the rights of the promoter in the building constructed for flats, and the entire land and building must be conveyed to the organization of flat purchasers. The promoter cannot sell 'stilt parking spaces' as they are not 'flats' nor appurtenant or attachment to a 'flat'.

                            Conclusion:
                            The appeals were dismissed, affirming that stilt parking spaces are part of the common areas and cannot be sold independently by the promoter. The court upheld the High Court's finding that such undertakings by flat purchasers are not binding.
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                            ActsIncome Tax
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