EARTHQUAKE & PROBLEMS UNDER OWNERSHIP FLAT ACT
QUESTIONS & ANSWERS
BY 
MAHABALESHWAR N. MORJE 
Q.1 Whether persons who have lost their residential accommodation or business premises would be entitled for restoration after the construction of the new building or repairs or reconstruction?
Q.2 Whether obligation of builder and developer to reconstruct the building after collapse in earthquake comes to an end ?
Q.3 Whether the right of the flat owner come to an end after the building collapse in earthquake or any other natural calamities ?
Q.4 Whether the Flat Owner is required to enter into another Agreement in writing and pay the stamp duty or registration fees for the second time in respect of the said premises?
Q.5 Whether HDFC, LIC, GIC or other financial institution can recover the loan given to the flat owners though the building completely collapsed?
Q.6 Whether HDFC, LIC, GIC can recover the amount from owner of the land and builder and developer?



 
Q.1. Whether persons who have lost their residential accommodation or business premises would be entitled for restoration after the construction of the new building or repairs or reconstruction?
Ans. Yes.  The privity of Contract does not come to an end the builder and developer are bound to reconstruct the building and provide residential or commercial accommodation with the help of Government and other Authorities (Ref. Bom.C.R.1996(4) 414)

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Q.2. Whether obligation of builder and developer to reconstruct the building after collapse in earthquake comes to an end ?
Ans. No. The Builder and Developer is supposed to be the promoter and trustee under the Maharashtra Ownership Flat Act, 1963 and rue obligation to reconstruct the building does not come to an end unless it is specifically mention to that effect in the agreement. 

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Q.3. Whether the right of the flat owner come to an end after the building collapse in earthquake or any other natural calamities ?
Ans. No. Even if the building collapses on account of flood, cyclone, bombing, earthquake etc. the previty of the contract does not come to an end, the Bombay High Court where the building was destroyed by fire has held that the previty of the contract continues and tenant is entitled for restoration of tenancy rights. In case of Ownership Flat Act this right will be still better than under Rent Act.

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Q.4. Whether the Flat Owner is required to enter into another Agreement in writing and pay the stamp duty or registration fees for the second time in respect of the said premises?
Ans. No. Because though the building is destroyed, demolished or collapsed statutory rights continues and it will not be legal to force them to make the payment second time.

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Q.5. Whether HDFC, LIC, GIC or other financial institution can recover the loan given to the flat owners though the building completely collapsed?
Ans. The flat in the building or building over the land is mortgaged when the loan is taken even if the building collapses, financial institutions will have claim over the land and they can recover the loan.

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Q.6. Whether HDFC, LIC, GIC can recover the amount from owner of the land and builder and developer?
Ans. Yes. The Flat Owner fails to pay or refund of loan it can be recovered from selling the land or from the money collected by the builder and developer at the time of sale of the flat.

For the Architect

i) Is it not responsibility of the Architect to satisfy that the building is constructed as per approved plan by the Municipal Corporation and satisfy that the material used for construction of the building is according to the specification and construction is made under supervision of experienced architect or contractor.
ii) Whether it is obligatory of Architect to see that there is no violation of FSI and no owner of the building or developer allow to make any additional alteration or construction though some times permission is wrongfully obtained from Municipal Authority
iii) To what extent architect should held responsible for the lose of life and property.
For Municipal Officers
i) Whether the Municipal Officers can permission to make alteration and construction by allowing to make loft or magazine floor without producing the structural stability certificate.
ii) Whether the Municipal Officers individually and collectively should be held responsible for the damages arising out of lose of human life and property.
For Government Officers.
i) Whether the Govt. the Collector of Stamps requires to refund the stamp duty fully or partly when the building could not be constructed or whether they are bound to adjust the said amount when the Flat Owner enter another agreement in leave of old agreement.


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    In case, one need further guidance please contact the Secretary, Flat Owners Association, at the address given below:

(MAHABALESHWAR MORJE)
Gen. Secretary.


23, Hamam Street, 3rd Floor , Above Quality Machine Tools , Fort , Mumbai - 400 023
Tel : +91-22-22650284/22657291 , Fax: +91-22-22657291
© Copyright 2002, The Flat Owner's Association, Mumbai.
Updated On30th March 2002.