LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Sham Phadnis (Service)     26 August 2011

Hold issue of society share certificates

Some members in society have unauthorized extensions like encroachment of flower beds as part of rooms, installed grills beyond peripheri of building etc. Society have sent letters to such members to remove these extensions and wants to hold issue of share certificates to them. Is the action be society justified by law?



Learning

 2 Replies

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     01 May 2012

Your question is not clear. If a person has been admitted as a member of a co-operative housing society he would already be having share certificate issued to him, either original share certificate or endorsed share certificate, if he had obtained the interests by tranfer from another person. Hence what is the exact meaning or circumstances of holding the the issue of share certificates? Please explain properly. 

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     01 May 2012

1.  Non-Issue of Share Certificate of a CHS, is restricted only to non-payment of Share Money (typically Rs. 250/-), CHS Entrance fee of Rs. 100/- and CHS Membership fees of Rs. 500/-.

 

2.  Non-Issuance of Share Certificate for ANY other reasons, other than above, is violation of the members rights and interest in the capital property of the Society and the MC can be dismissed u/s 77A for the same besides becoming liable for prosecution under the Consumer Protection Act, for deliberate negligence and failure to provide appropriate service to its members.

 

NOTE : Some CHS do sometimes issue share-certificates after few years due to administrative reasons, BUT these cannot be capitalised to compel the members to remove "unauthorized extensions like encroachment of flower beds as part of rooms, installed grills beyond peripheri of building etc. or make payments of outstanding dues and whatever."

 

Keep Smiling .... Hemant Agarwal
 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register