WRIT PETITION NO. 2635 OF 2001 HC Judgement specifies that non occupancy charges cannot be more than 10% of service charges. there are two method of calculating this as follws
method a)
The amount of services charges as per 13 matters included in the service charges as per new model bye law no 68 is Rs 100000 per annum. Non occupancy charge is charged per member who has given his flat on rent and is restricted to 10% of service charge. so the non occupancy charge for the member comes to 10% of 100000 i.e. rs 10000 pa or Rs 833 pm
method b)
The amount of services charges as per 13 matters included in the service charges as per new model bye law no 68 is Rs 100000 per annum.Total no of flats 18. The share of each member in the service charge pa comes to Rs 5555 i.e. pm rs 463. Non occupancy charge is calculated on the 10% of the share of the service charge of the member who has given his flat on rent and thus it comes to Rs 46 pm. method b) assumes the calculation is based on the word "SHARE", where as no where in the bye laws it is mentioned that it is to be calculated on the "SHARE" portion.
now my question is which method is correct - legally
