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suresh nair (Retired )     16 July 2024

Transfer of share certificate in housing society

Can the society refuse to transfer the share certificate in my name since I have done some unauthorised extensions im my flat? Society had issued me letters regarding it during the course of work.



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 7 Replies

T. Kalaiselvan, Advocate (Advocate)     16 July 2024

The society if it is a registered body can take legal action against for violating completed structural construction being done illegally. But if you are a owner of the flat by a registered deed then the society cannot refuse to give share certificate for any reason 

You can make a complaint with the registrar of cooperative society against your society on this refusal.

Dr. J C Vashista (Advocate )     17 July 2024

Denial for issuance of share certificate and illegal / unautorised extension are two different disputes which have no correlation.

Rules governing share certificate shall prevail over the subject matter and to findout reasons for denial / plea on the issue.

How any why did MC permit you to carryout unauthorised / illegal construction, if any.

What is the type of illegality in such construction ?

All relevant question(s) has to be satisfied before forming some opinion. 

suresh nair (Retired )     18 July 2024

The General Body in one of its meeting decided to penalise such members who have done illegal extensions of their rooms, enclosing their open terrace etc in their quarterly bills. Additionally it was decided that such members will not be given NOC for sale and also their share certificate won't be transferred after the sale, till the illegality is normalised. Notices to that effect were issued to all the members. Society also informed the municipal authorities about the illegalities. There was no action till date from their side.

T. Kalaiselvan, Advocate (Advocate)     18 July 2024

The actions of society against such issues is illegal, the society is not a legal guardian neither it is a law maker or a law enforcing authority/agency.

If the society is taking an arbitral  decision in this regard which may cause grievance to the members, then aggrieved member can take up the matter with the registrar of ciooperative societies by first issuing a legal notice to society and seek intervention as well as relief and remedy by the deputy registrar.

If nothing comes in his favor he can approach cooperative court with a suit against the society and can implead the registrar as a party seekig direction in this regard for the relief sought

suresh nair (Retired )     21 July 2024

Penalty levied by the Society for illegal constructions/extensions is as per the adopted bye law. The resolution of refusing to Issue NOC for transfer till illegality is regularised and not transferring share certificate after sale deed till then was passed in the General Body.

Dr. J C Vashista (Advocate )     22 July 2024

Issue legal notice to withdraw such resolution and wait for some time. If no action is taken by MC / AGM move to State Registrar Cooperative Societies for setting aside the resolution. 

suresh nair (Retired )     23 July 2024

Thank you all for your kind advices on the matter.


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