Under the Tamil Nadu Apartment Ownership Act, 2022, ownership of an apartment and membership of the Association are intrinsically linked. A person who owns an apartment does not cease to be an apartment owner merely because he has failed to furnish KYC documents or pay an administrative charge approved by the General Body. Such a person continues to be an apartment owner with an undivided share (UDS) in the common areas and continues to enjoy proprietary rights over the apartment. Therefore, non-compliance with procedural requirements for migration or administrative formalities does not divest the owner of ownership rights or convert him into a "non-member."
However, such an owner can certainly be treated as a defaulting or non-compliant owner if he has failed to comply with lawful resolutions of the General Body, including furnishing documents reasonably required for migration under the Act or payment of duly approved charges. The Association is entitled to call upon such owners to comply and, in the event of continued default, recover lawful dues and enforce compliance through the remedies available under the Act, the Rules and the applicable bye-laws.
As regards participation in General Body Meetings, ownership ordinarily entitles an apartment owner to receive notice of meetings and attend them. Whether voting rights or eligibility to contest elections can be restricted depends upon the provisions of the Act, the Rules and, more importantly, the registered bye-laws of the Association. In the absence of a statutory provision or valid bye-law expressly providing for suspension of voting rights on account of default, the Association cannot arbitrarily deprive an apartment owner of such rights merely because documents have not been furnished or an administrative charge remains unpaid.
Similarly, non-compliance with KYC requirements or migration formalities does not affect ownership of the apartment, the owner's undivided share in the common areas, access to common facilities, or liability to contribute towards common expenses. These rights and obligations arise from ownership itself and not from compliance with administrative formalities. At the same time, an owner cannot refuse indefinitely to furnish documents legitimately required for migration if such requirement flows from the Act, the Rules or the bye-laws. The proper remedy for the Association is to enforce compliance through notices, recovery proceedings and other legal remedies rather than treating the owner as having ceased to be a member or depriving him of proprietary rights.
The distinction between ownership rights and management rights has been recognised by courts in various contexts. While ownership rights are proprietary in nature and cannot ordinarily be taken away except in accordance with law, management rights such as voting, contesting elections or holding office may be regulated by statute or validly framed bye-laws. Accordingly, if the Association intends to restrict voting rights of defaulting owners, such restriction should have a clear legal foundation in the Act, the Rules or the registered bye-laws and cannot be imposed merely by an executive decision or resolution unsupported by law.
In the absence of a specific provision under the Tamil Nadu Apartment Ownership Act, 2022 or the registered bye-laws providing otherwise, the safer legal view is that default in furnishing documents or payment of an approved administrative charge does not extinguish membership flowing from ownership, though it may expose the owner to recovery proceedings and other lawful consequences. The Association's remedy is to enforce compliance and recover dues through the legal mechanisms available rather than denying ownership-related rights or treating such persons as strangers to the Association.