Deemed transfer of management: maintenance and IFMS to be handed to registered apartment associations under IRP supervision.

Whether registered apartment owners associations are entitled to receive maintenance and IFMS charges: the article applies the deeming fiction in Section 14(5) to treat management of common areas and facilities as transferred to a subsisting registered association and states that valid registration raises a presumption of compliance with registration prerequisites; lack of a deed, completion certificate issues, or asserted outstanding dues do not defeat entitlement. The Interim Resolution Professional may supervise removal of the maintenance agency and handover; contractual remedies remain available to the agency for recovery. Handover directed within thirty days in the reported outcome.

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Issues: Whether respondent No.2 (YG Estates Facilities Management Pvt. Ltd.) is required to hand over maintenance and IFMS charges to the respective duly registered Apartment Owners Associations of the projects, and if so, the manner and timeline for such handover.

Analysis: The applicants are registered apartment owners associations with current registration under the Uttar Pradesh Apartment (Promotion of Construction Ownership and Maintenance) Act, 2010 and almost all allottee-owners having taken possession. Section 14(5) of the Act creates a deeming fiction that on formation of the association management of common areas and facilities is transferred from the promoter to the association. Objection based on Rule 55 (seal of the association) was considered in the factual context that no deed or instrument is being executed; the applications were filed supported by affidavits and board resolutions. Prior tribunal orders addressing similar facts and the cited decision of the Allahabad High Court support the view that valid registration gives rise to a presumption of compliance with registration prerequisites and that completion/occupancy certificate issues do not, by themselves, defeat entitlement to handover where association registration is subsisting. The Interim Resolution Professional has indicated it is appropriate for the maintenance agency to be removed and for handover to occur under IRP supervision. Claims of outstanding dues by the maintenance agency do not preclude ordered handover; contractual and other remedies remain available to the agency for recovery.

Conclusion: The respondent No.2 is directed to hand over maintenance and IFMS charges to the respective registered Apartment Owners Associations within 30 days under the supervision of the Interim Resolution Professional; the applications are allowed and the relief is granted in favour of the appellants.

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