12. Encumbrances against apartments.—
(1) The owner of each apartment may create any
encumbrance, only against the apartment owned by him and the percentage of the undivided interest in
the common areas and facilities appurtenant to such apartment in the same manner and to the same extent
as may be created in relation to any other separate parcel of property subject to individual ownership:
Provided that where any such encumbrance is created, the apartment in relation to which such
encumbrance has been created shall not be partitioned or sub-divided.
(2) No labour performed or material furnished with the consent, or at the request, of an apartment
owner or his agent or his contractor or sub-contractor, shall be the basis for a charge or any encumbrance
under the provisions of the Transfer of Property Act, 1882 (4 of 1882), against the apartment or property
of any other apartment owner not expressly consenting to, or requesting the same, except that such
express consent shall be deemed to be given by the other apartment owner in the case of emergency
repairs thereto.
(3) The labour performed and material furnished for the common areas and facilities, if duly
authorised by the Association of Apartment Owners in accordance with the provisions of this Act or the
bye-laws, shall be deemed to be performed or furnished with the express consent of each apartment owner
and shall be the basis for a charge or encumbrance under the Act aforesaid against each of the apartments
and shall be subject to the provisions of sub-section
(4).
(4) In the event of a charge or any encumbrance against two or more apartments becoming effective,
the apartment owners of the separate apartments may remove their apartments and the percentage of
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undivided interest in the common areas and facilities appurtenant to such apartments from the charge or
encumbrance on payment of the fractional or proportional amounts attributable to each of the apartments
affected and on such payment, the apartment and the percentage of undivided interest in the common
areas and facilities appurtenant thereto shall be free of the charge or encumbrance so removed:
Provided that such partial payment shall not prevent the person having a charge or any of the
encumbrances from proceeding to enforce the rights in relation to the amount not so paid, against any
other apartment and the percentage of undivided interest in the common areas and facilities appurtenant to
such apartment.
(5) On any such payment, discharge on other satisfaction, referred to in sub-section
(4), the apartment
and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall be
free and clear of the charge or encumbrance, so paid, satisfied or discharged.
CHAPTER III
DEED OF APARTMENT AND ITS REGISTRATION
