Transfer of shares in a chs - sale certificate unrgistered
Amit
(Querist) 09 May 2024
This query is : Resolved
I have bought a property in an auction located in Maharashtra.
The bank has issued a Sale Certificate for the same.
Since this is an instrument that does not necessarily need registration I have not registered the same.
Can the society transfer the shares of the flat in my name?
Please guide
T. Kalaiselvan, Advocate
(Expert) 09 May 2024
Section 17(2)(xii) of the Registration Act, 1908 specifically provides that a certificate of sale granted to any purchaser of any property sold by a public auction by a Civil or Revenue Officer does not fall under the category of non-testamentary documents which require registration under the Act.
As per the Judgment reported in 2007(5) SCC 745 the Hon'ble Supreme Court of India held that "when an auction purchaser derives title on confirmation of sale in his favour, and a sale certificate is issued evidencing such sale and title, no further deed of transfer from the Court is contemplated or required and that Sale certificate issued by the Court or an Officer authorized by the Court, does not require registration. Section 17(2)(xii) of the Registration Act, 1908 specifically provides that a certificate of sale granted to any purchaser of any property sold by a public auction by a Civil or Revenue Officer does not fall under the category of non-testamentary documents which require registration under the Act.".
Therefore the society cannot refuse to transfer the share certificate in the name of the purchaser for this reason
kavksatyanarayana
(Expert) 09 May 2024
Yes. But a copy of the sale certificate shall be sent to the Sub Registrar concerned by the Auction authority to file it and index it in the SRO records. Then only your sales certificate is reflected in EC.
T. Kalaiselvan, Advocate
(Expert) 09 May 2024
The question is about whether the society will recognise the title and issue a share certificate to the title holder and not about reflection of transaction in EC.
Amit
(Querist) 10 May 2024
The bylaws of a chs in Maharashtra say nothing about transfer of shares on execution of a sale certificate.
The bank refuses to write to the registrar informing him about the sale and to file and index in in SRO as the same is not in their policy.
They also say that if it is done I cannot register the Sale certificate later.
Is this correct?
kavksatyanarayana
(Expert) 10 May 2024
The DRT must send the sale certificate to the sub-registrar concerned. It does not require registration. If the bank concerned did not send the same to the SR, make a complaint to the Bank's higher authorities. After receiving the sale certificate by the SR he will enter the transaction in their office records and in EC it will be reflected. then the CHS cannot object you if show the copy of EC and sale certificate and issue the share certificate.
T. Kalaiselvan, Advocate
(Expert) 10 May 2024
You can follow the advise rendered by expert Mr Satyanarayana Sir in this regard.
It is a very useful suggestion about the procedures to be followed.
Nothing prevents you from initiating legal action if you are aggrieved by such dilly dallying tactics adopted by each authority including the society without allowing you to enjoy the property or denying to give you benefit of the purchase of property in a proper manner.
Amit
(Querist) 14 May 2024
Thank you for your advice
Amit
(Querist) 16 May 2024
Just one more clarification
Once the sale certificate by the SR he will enter the transaction in their office records and in EC it will be reflected.
Is it possible to get the same registered later ?
The society lawyer is not ready to understand and asked me to submit a lawyers opinion on the title. I am thinking of approaching the deputy registrar. Is this the right approach or should I first give a lawyers opinion?
Amit
(Querist) 16 May 2024
Just one more clarification
Once the sale certificate by the SR he will enter the transaction in their office records and in EC it will be reflected.
Is it possible to get the same registered later ?
The society lawyer is not ready to understand. The society didn't even receive my letter.
The society lawyer asked me to submit a lawyers opinion on the title. I am thinking of approaching the deputy registrar. Is this the right approach or should I first give a lawyers opinion?
kavksatyanarayana
(Expert) 16 May 2024
It does not require registration as the DRT-issued sale certificate and still any doubt call me.
