Unconditional waiver of pre-deposit granted where maintenance charges were shown as statutory outgoings for flat owners.

Collection of development and maintenance charges from flat purchasers under section 5 of the Maharashtra Ownership Flats (Regulation) Act, 1963 was treated as prima facie support for the appellant's claim that the sums were only to meet outgoing expenses such as municipal taxes, water charges, electricity charges and other mandatory levies. On that basis, the Tribunal found a strong case for interim protection and granted unconditional waiver of pre-deposit, while staying recovery of the adjudged dues during pendency of the appeal.

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Issues: Whether the appellant had made out a strong prima facie case for unconditional waiver of pre-deposit and stay of recovery pending the appeal.

Analysis: The appellant collected development and maintenance charges from flat purchasers in terms of Section 5 of the Maharashtra Ownership Flats (Regulation) Act, 1963, asserting that the amounts were collected only to discharge outgoing expenses such as municipal taxes, water charges, electricity charges and other mandatory levies on behalf of the flat owners. On a prima facie view of the matter and having regard to the statutory obligation under the said provision, the Tribunal found that the appellant had established a strong case for interim relief.

Conclusion: Unconditional waiver of pre-deposit was granted and recovery of the adjudged dues was stayed during pendency of the appeal.

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