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Sreeni (Others)     08 April 2013

Legal meaning of "pro-rata"

Dear lawyer community,

In the context of sharing common expenses in apartments - can I request you to comment on the legal meaning of "pro-rata"? Does it mean always depends on "flat size alone" or "based on usage of a service"?

People with small apartment always insist it has to be based on size. But bigger flats do not.

Please clarify what is the legal definition of "pro-rata".

Regards,

Sreeni



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 2 Replies

Manish Udar (www.Mehnat.IN)     09 April 2013

In proportion to the services used by each flat.

1 Like

Sreeni (Others)     09 April 2013

Thank you Manish sir.

In the context of Karnataka Apartment Owner's act:

Clause-10 talks about the sharing of the common expenses by the apartment owners as below.

"10. Common profits and expenses.- The common profits of the property shall be distributed among and the common expenses shall be charged to, the apartment owners according to the percentage of the undivided interest in the common areas and facilities."

The issues arise in this case because we have two blocks (B and C) maintained by a single association.

The Deed of Declaration is common for these two. All B block apartments are small in size and all C block apartments are large in size.  Since these two are under common umbrella, people from C block feels that by charging the maintenance based in size, B block would shelve out less money but they would enjoy all benefits at the lower cost. One similar example is : In the recent times the lift has been re-structured and C block people have to shell out double the money. But B block residents enjoy all the facilities at a very very low price. People always argued that lift cost sharing is nothing to do with the size of individual apartments.

With this disparity in the cost sharing - would it be possible to seperate the associations seperately?

Would it be possible to manage two seperate accounts for two blocks (it is left to them how they charge individual flats) and spend the money on the common expeneses based in % of houses between these two blocks?

Legally can these associations be seperated? What is the legal hassale in this? Who all should approve for this seperation?

Regards,

Sreeni


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