Club House
3 months ago
I am living in an Apartment which has a Club House. There are various facilities in the club house like party hall, Terrace party hall, Table Tennis room, Gym, billiards room, badminton area and so on. There are nearly 2400 flats in our gated community. There is an Association in place. The party halls , multipurpose hall are all chargeable if any resident wants it for a private function. My queries are as follows:
1. Whether the spaces inside the Club House such as Party Hall Terrace Multi purpose Halls can be termed as COMMERCIAL SPACES?
2. The Association is entering into Agreement with various Vendors for allowing them to use the space inside the Club House like Multi purpose Halls etc. for providing Bharat Natyam classes, Zumba classes, Music coaching classes, Yoga classes. These coachers collect fees/ charges from those who enrol for coaching. These coachers are allotted slots to teach/ train and coach their enrolled students. In turn the Association charges 20% as charges from each coach. There are residents who have come together and formed various community groups such as Bhajan groups, Karaoke singing Group, Yoga group, Dance group, Senior citizens group, etc. These groups are demanding from the Association some space within the Club House such as Multi purpose Halls etc. to carry out their group activities such as dancing, singing, yoga, meetings, as and when these spaces are not allotted to any one and are freely available. These community groups are not engaged in any form of commercial activity. It is only for the purpose of self recreation and good health. Even if these facilities are unused, freely available, the Association is refusing to allow the resident community groups mentioned above to use these facilities free of cost on the ground that these are commercial spaces and cannot be allowed to be used free. The Association says that they have passed a Resolution against allowing free use of any space within the Club House. However there are Yoga Room, Gym, Billiards Room, Card ROOM Table Tennis room, badminton court, which are allowed to be used by Residents free of cost.
Question is whether the Association's claim that Club House is a Commercial space is right legally?
Secondly, whether the Association is legally correct in refusing to allow Residents who have formed various community groups mentioned above to use the Club house facilities on no cost basis i.e. free of cost? Residents pay heavy maintenance charges for maintenance of all these facilities. Is the Association right in demanding charges for use of space on the ground that it is a commercial space?
Regarding your first question, it is important to clarify that a Clubhouse within a gated society is considered a common area for the shared use of resident members. It cannot be classified as commercial space unless explicitly defined as such in the Deed of Conveyance for the flat. Resolutions in society meetings do not alter the property's status. Moving on to your second query, contracts entered into by the Board of Managers with third-party vendors for various services related to maintenance cannot transform common space into commercial space through a resolution alone. For such a change, the Civic Authority must officially designate the space as commercial and levy property tax accordingly. In case of disputes, residents have the right to seek remedies from competent authorities, including the Registrar/Dy. Registrar, Cooperative Societies, Co-operative Court, Civil Court, Municipal Corporation, and other administrative bodies, to address the issues appropriately.
Thankyou
As regards query No.1, it is to inform you that a Clubhouse in a gated society is considered a common area for the use of common purposes by the resident member of the Association. It cannot be termed as commercial space if it is not defined as commercial space in your Deed of Conveyance of the flat. A resolution in a society meeting cannot change the status or class of any property. As regards query no.2. it may be noted that the Board of Managers in an association entered into a contract with third-party vendors for a variety of services required for maintenance of the common area and the inbuilt facilities and such a contract can not change a common space to a commercial space merely through a resolution until and unless such space is marked by the Civic Authority as commercial space and levied property tax treating the same as commercial space carrying on commercial activities. So, whatever the dispute or difference arises between the resident member and the Association resident members have the right to approach the competent authorities for remedial measures, including the Registrar/Dy. Registrar, Cooperative Societies, Co-operative Court, Civil Court, Municipal Corporation, and other administrative authorities for a resolution in the in right way/
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