Based on the facts stated by you, the legal position may be summarized as follows.
Until the migration process under the Tamil Nadu Apartment Ownership Act, 2022 ("TNAOA") is completed in accordance with the Act and the Rules, the existing Society registered under the Tamil Nadu Societies Registration Act, 1975 continues to exist and administer the affairs of the complex. The TNAOA does not automatically dissolve or invalidate an existing Society merely because the Act has come into force. Until the statutory migration is completed and the Apartment Owners' Association is constituted under the TNAOA, the Society continues to function, subject to the condition that its actions are not inconsistent with the provisions of the TNAOA.
As regards membership, ownership of an apartment under the TNAOA confers statutory rights as an apartment owner. However, during the migration process, the Society is entitled to call upon apartment owners to furnish title documents, KYC particulars and other information reasonably required for migration, preparation of the apartment owners' register and compliance with the statutory requirements. An owner cannot indefinitely refuse to furnish such documents merely by asserting that ownership alone automatically makes him a member. While ownership rights remain unaffected, compliance with reasonable procedural requirements can be insisted upon for the purpose of completing migration.
With regard to the collection of ₹500 approved by the General Body under the Society's bye-laws, such collection may continue pending migration provided the resolution is validly passed and the amount is genuinely towards administrative or migration-related expenses. Failure to pay such charges does not affect the owner's title, undivided share (UDS) or proprietary rights, although it may render the owner a defaulter under the existing Society framework and expose him to recovery proceedings in accordance with law.
The overriding effect of the TNAOA does not mean that every existing Society bye-law becomes void immediately upon the Act coming into force. The settled principle is that existing bye-laws continue to operate during the transitional period to the extent they are not inconsistent with the provisions of the statute. Only those bye-laws which are directly repugnant to the mandatory provisions of the TNAOA would become unenforceable.
On the issue of separate block associations, the facts narrated by you assume considerable importance. You have stated that the complex constitutes a single project, governed by one Deed of Declaration, with common UDS and common areas and amenities. If that is factually correct, the legal position is that the project ordinarily constitutes one apartment property under the Declaration. Neither the Managing Committee nor the General Body can ordinarily split such a project into separate block-wise associations merely by passing a resolution. Such bifurcation would affect proprietary rights, common areas and the scheme of the Declaration itself.
If any restructuring of the project into separate block associations is proposed, it would ordinarily require amendment of the Deed of Declaration and compliance with the provisions of the TNAOA governing amendment, together with the consent required under the Act and the Rules. It is not merely an administrative decision. Questions relating to redistribution of common areas, UDS, maintenance liabilities, common infrastructure and voting rights cannot ordinarily be altered by a simple majority resolution.
Your reference to Section 10 of the TNAOA is also significant. The provision contemplating a Federation where there are two or more projects having separate associations indicates that the legislative scheme distinguishes between multiple independent projects and a single project governed by one Declaration. While the precise interpretation would depend upon the language of the Declaration and the Rules, Section 10 lends support to the argument that separate associations are generally contemplated for separate projects rather than for different blocks of a single declared project having common UDS and common facilities.
Similarly, any bye-law seeking to create exclusive block administration, block-wise ownership rights or block-wise autonomy inconsistent with the common Declaration or the TNAOA may be open to challenge. Administrative arrangements for convenience may be permissible, but they cannot dilute or alter proprietary rights created under the Declaration or the statute.
Judicially, Indian courts have consistently recognised that a Deed of Declaration constitutes the governing document of apartment ownership and that common areas and undivided interests cannot ordinarily be altered except in the manner prescribed by statute. Courts have also distinguished between proprietary rights arising from ownership and administrative rights flowing from association membership. While there are decisions of the Madras High Court dealing with apartment associations, the precise issues arising under the TNAOA, 2022 are still evolving, and there is presently limited reported judicial precedent directly interpreting the migration provisions of the new Act. Consequently, courts are likely to apply settled principles governing apartment ownership, declarations, common areas and statutory interpretation while adjudicating such disputes.
Accordingly, on the facts stated by you, the stronger legal view appears to be that until migration is completed, the existing Society continues to function; owners remain owners notwithstanding non-compliance with migration formalities; existing bye-laws continue to operate insofar as they are not inconsistent with the TNAOA; and a single project governed by one Declaration and common UDS cannot ordinarily be fragmented into separate block associations merely by a General Body resolution without complying with the statutory requirements governing amendment of the Declaration and the rights of all apartment owners.