• TNAOA Act, rules, and new bye-laws of association

Learned Friends, 

Good Evening 

Kindly clarify the following as we are making Bye laws for TNAOA- migrating from TN Registered Societies Act to TN Apartments Act,quoting relevsnt secions,clauses of TNAOA Act/ Rules/ amendments. 

Proxy :

Voting :
2 . Can in all the meetings of members ( AGBM,GBM,Extraordinary GBMs) where normal / special resolutions are supposed to be passed , are the proxies eligible to vote ?
3. If after nominating a proxy if an owner turns up for the meeting , what happens to proxy of he had already checked and marked against owner ?
4. As per TNAOA , the voting should be on UDS basis. If so, is it for all type of meetings and resolutions.can we have 1 vote per owner per Apartment?
5.Can the same proxy vote for more thsn owner ?
6. If a owner has more than two apartments, how many votes he is eligible ? And can he nominate same proxy to attend and vote or he has to nominate a different person as proxy .
Accounts :
Some newly handed over blocks who have joined the association wants that the maintenance amount they pay are least spent for repairs and mostly for common area expenses as their blocks are new.
So they are saying to keep the balance unused amount ( afters any maintenance expenses) and this safely kept amount should only to be used for their future maintenace work and should not be used for other old blocks maintenance works.
Now I need clarifications :
1. Can this be done ,as since this project is a project approved for whole 7 blocks and they are handed over in phases and the association has been existing under TN Societies Act during these hand over of two blocks, for nearly 8 years.
The uds is for all apartments from the area pf complex and STP, Park,club house, swimming pool, badminton and tennis courts are common for all residents of the complex. The complex has common entry and exit.
I am given to understand that separate accounts and crediting excess amount to individual block accounts is against TNAOA act/ rule/ amedments..and bye laws can not be written as requested .Am I right sirs

Need clear reply so that our byelaws do not violate Act/Rules/Amendment.
Pl add concerned clauses and sections .

Kindly help me to prepare a good bylaw for my society ,as per TN AOA Act/ rules/ amendments. 

Thanks in anticipation.

Krishnan
Asked 3 hours ago in Property Law
Religion: Hindu

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3 Answers

1) proxies are eligible to vote on both normal and special resolutions across all General Body meetings , provided the proxy instrument is legally drafted and submitted according to association bye-laws. 

 

2) : If an owner turns up in person after nominating a proxy, the physical presence and vote of the owner override the proxy. The proxy's right to vote is cancelled, 

 

3) Voting rights are calculated proportionally based on the percentage of Undivided Share (UDS) or carpet area, not a flat "1 vote per apartment" system. Attempting to restrict it to 1 vote per owner violates the mandated proportionality under

 

4) : unless expressly restricted in your registered bye-laws, the same person may act as a proxy for more than one owner.

5)If an owner holds multiple apartments, they hold votes equivalent to the combined UDS/carpet area of all their apartments. They may nominate a single proxy to attend on their behalf for all units, or choose different proxies. [

 

6)since your complex is registered under one single master Deed of Declaration with shared common amenities (STP, park, clubhouse, etc.), individual blocks cannot segregate their accounts or claim total financial independence

 

 

Ajay Sethi
Advocate, Mumbai
100604 Answers
8227 Consultations

You need to form concise bye laws consistent with the Act in this matter

Prashant Nayak
Advocate, Mumbai
35118 Answers
256 Consultations

Migrating from the Tamil Nadu Societies Registration Act, 1975 to the Tamil Nadu Apartment Ownership Act, 2022 (TNAOA) and its corresponding Tamil Nadu Apartment Ownership Rules, 2024 requires fundamental changes to how your association governs voting and handles financial accounts.

Under the TNAOA 2022 and the Model Bye-Laws (2024), voting rights are explicitly coupled with the Undivided Share (UDS) or the specific percentage of interest that each apartment holds in the common areas. Proxies are legally permitted to attend and vote in all general meetings, whether normal or special resolutions are being considered. However, the proxy must be appointed formally via a signed proxy form submitted to the Board of Managers within the timeframe stipulated in your Bye-Laws. This is standard practice adapted from Model Bye-Laws under Section 6 (Bye-laws) and Section 7  of the TNAOA, 2022.

If the principal (the actual apartment owner) physically turns up and marks their presence at the meeting, their proxy is automatically superseded. The owner can cast their vote directly, and the proxy is no longer authorized to vote on behalf of that unit.

Ref section 5 and 4 of modely byelaws;  For critical matters, such as amending the declaration, approving redevelopment under the 2024 Rules (which requires a two-thirds majority), or allocating major common expenses the vote must be calculated according to the UDS percentage.

The same proxy vote for more than one owner subject to restrictions if any in your Bye-Laws. The TNAOA does not explicitly restrict a proxy from representing multiple owners. 

If an owner holds three apartments, he/she hold the cumulative voting weight (the sum of the UDS percentages) of all three units. They do not get just "one vote as an individual."

The request by the owners of the newly handed-over blocks to wall off their excess maintenance funds into a separate block-centric account is a direct violation of the Tamil Nadu Apartment Ownership Act, 2022.Under the TNAOA, your entire 7-block project functions as a singular, unified "Property" or "Project" bound by a single Declaration filed under Section 4.

If you create a bye-law that isolates funds by block, it will be rejected by the Competent Authority during registration under Rule 6 (Registration of bye-laws) because the , under Section 3(2), the undivided interest of each owner in the common areas is permanent and cannot be altered or divided.

The fact that the project was completed in phases over 8 years does not split it into separate legal entities. It remains one project, one association, and one common pool. While the new blocks might require fewer immediate structural repairs than an 8-year-old block, their residents are concurrently utilizing older common assets (like an existing STP or clubhouse) whose replacement or major overhaul costs will later be shared by everyone.

When drafting your new TNAOA-compliant Bye-Laws, stick strictly to the Model Bye-Laws template provided in the Appendix of the TN Apartment Ownership Rules, 2024.

For drafting or to prepare  good bylaws, you may engage the services of an experienced lawyer in the local or can choose an advocate of this website too on the terms of chosen lawyer.

T Kalaiselvan
Advocate, Vellore
90812 Answers
2523 Consultations

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