Power of attorney
Bhavik
(Querist) 24 September 2014
This query is : Resolved
in my housing society, few members having bank loan for home. So as of now they are legally not a owner of their house.
So my question is
1. can this type of house hold person(owner) can issue a power of Attorney to somebody for attending society meetings and participate for voting?
2. can this type house hold person (owner) can issue a power of Attorney to somebody for to make him member of society working committee along with some post (chairman , secretary etc.)
Can you pls guide what kind of power of attorney get issue limited to / for housing society.
Kishor Mehta
(Expert) 24 September 2014
Sir,
[1] The person who has acquired a loan from a Bank against the mortgage or otherwise of a flat remains its owner, and has all the rights of a member of a CHS.
[2] Issue of Power of Attorney is not valid in a CHS to enable anybody either to attend or stand for election to the Managing Committee.
[3] A person has to be enrolled as an Associate member of the CHS, after fulfilling the required procedure, then and only then he can attend the AGM and/or participate and/or stand for election of the Managing Committee.
Good Luck,
Kishor Mehta
Devajyoti Barman
(Expert) 24 September 2014
Who told you that they are not the owners.
They as as lawful owner as like you and has every right to give POA to manage their affairs.
ajay sethi
(Expert) 24 September 2014
agree with Kishore mehta
Bhavik
(Querist) 25 September 2014
Thanks everybody ....
My understanding is like this as below. Correct me if i am wrong.
1. The person who acquired home loan from bank, can not issue POA for anybody bcz his/her share certificate of builder and original documents are with bank till closer of loan. So ideally bank should issue POA for attending AGM or stand for election, not owner of home.
2. If owner is not a member of working committee,then how he/she can issue a POA for anybody to stand for chairman , secretory post. My u/s is, first owner should part of working committee and then he/she can issue a POA to anybody to pass his responsibility to others.Generally member of society selecting the managing committee first and then post will be decide by managing committee member later on.
3. Who will responsible if any fraud done by POA holder - Bank or owner?
Rajendra K Goyal
(Expert) 25 September 2014
1. Even after Bank loan, share certificate, original documents remains in the name of the borrower and he remains owner of the property. The ownership is by virtue of the fact that the property is owned by him and not decided by the fact that the original documents are in his pocket , house, bag, in Bank or mortgaged.
He can very well issue POA being owner. POA does not change ownership.
2. Bye laws of the society has to be referred.
3. Owner / POA or both would be responsible according to the nature of fraud.
Bhavik
(Querist) 25 September 2014
Dear Mr. Kishore Mehta, Need your views also on my understanding.
POA must be on stamp paper and notarized ? or it is just self written document and treat as POA from issuer ?
Kishor Mehta
(Expert) 25 September 2014
Sir,
[1] Legally the membership of a CHS is considered by the names that appear on the Share Certificate of the CHS. While acquiring a loan against the mortgage of a CHS flat the share certificate of the CHS is put as lien or as a collateral, however the legal ownership of the flat remains with the member.
[2] A person can always grant a Power of Attorney to anybody for the proper administration of his assets. However a POA is not legally valid as far as voting, attending and participating in the election of a CHS is concerned. A person must be properly enrolled as an Associate member to either vote, attend or participate in election of a CHS.
Good Luck,
Kishor Mehta
malipeddi jaggarao
(Expert) 25 September 2014
Your understanding is totally wrong. Simply because a person obtains Housing Loan, he does not loose the ownership. Whatever rights a person who acquired the house/flat without any loan, equally applicable to them also.
Dr J C Vashista
(Expert) 26 September 2014
I agree with the expert advise of Mr. Kishore Mehta with the following addition/ exception.
You have posted two sets of questions, in my opinion the POA has no status in Cooperative Societies Act (any state). The membership is granted to its share holder who may authorise joint-share holder to vote and not any outsider (like POA-as stated by you).
The bank has a lien (claim) on the flat till the loan is not liquidated, but not the title, which is conferred upon the member/ purchaser of flat.
The associate member can participate meetings of the CHS (AGM as well as MC)but do not have any right in the affairs of the society.
Bhavik
(Querist) 26 September 2014
Thanks everybody ....Now i am through with all ans.
T. Kalaiselvan, Advocate
(Expert) 01 October 2014
Expert Mr. Kishore Mehta has explained the issue very perfectly, I endorse his views and add nothing more.
