Member wants to sell his shop and wants society's noc. but earlier agreements missing.
D Chavan
(Querist) 15 January 2014
This query is : Resolved
A member wants to sell his shop. He has informed society in writing. He is third transferee. The chain of agreements is as follows:
1. Mr. A purchased the said shop from the builder. Agreement-2002
2. Mr. A sold to Mr. B (the first transfer). Agreement -2004
3. Mr. B sold to Mr. C ( the second transfer) Agreement -2008
4. Mr. C sold to Mr. D( the third transfer) Agreement 2010
5. Mr. D is now the present occupant of the shop.( the third transferee)
Now Mr. D wants to sell his shop to Mr. E. Last week Mr. D approached society with his prospective buyer and informed society in writing his intention to sell his shop to Mr. E. Since there are so many transfers, we advised Mr. E to verify all the previous original agreements from Mr. D before entering into agreement.
At this movement Mr. D told us that Mr. C has lost both his earlier original agreements (first agreement with builder and Mr. A and second agreement with Mr. A and Mr. B.) Mr. D is having only two original agreements with him (third agreement between Mr. B and Mr. C and forth agreement with Mr. C and Mr. D)
When we asked Mr. D that how and why he dare to purchase the said shop from Mr. C without getting previous original agreements and that to without bringing to knowledge of the society. The present owner told us that Mr. C has given him Indemnity Bond and on the strength he has purchased the shop and Bond was not submitted to society. Now he is showing us a xerox copy of the Bond. He also told us that agent has done all these things for him.
Mr. E even though is aware of this whole matter is ready to purchase the shop and asking society to issue NOC to sell the shop.
Mr. D did not apply for certified copies of lost agreements from sub-registrar. Mr. C. did not lodge any police complaint for lost documents and also did not give any public notice about lost documents.
We think all these transfers as suspicious transactions. It also seems that Mr. D is not serious about loss of documents.
What society should do in such situation? What type of NOC can be issued?
Knowledgeable persons are requested guide us. We have taken a charge of society in 2011.
Waiting for your early reply.
Kishor Mehta
(Expert) 15 January 2014
Sir,
This query should have been raised at the time of the transfer of society share certificate to the name of Mr.'D'. Copies of the chain of registered documents should have been deposited with the society for the transfer of the share to Mr.'D'.
How was the share certificate of the society transferred to Mr'D'?
Kishor Mehta
Guest
(Expert) 15 January 2014
To the safety of the Society you could instruct D to give a 30 days public press notice in a prominent news paper on behalf of Society as well as D seperately explaining every thing in detail drafted by an advocate.Then you could go ahead with transfer.
Dr J C Vashista
(Expert) 16 January 2014
It is 'D' who wants to sell the shop and seeking NOC from society. The society has to check and verify from their records whether 'D' is shareholder of the society or not? If yes, may issue NOC (when there is no outstanding against the shop) otherwise deny.
Rajendra K Goyal
(Expert) 16 January 2014
If D is shareholder in the society, society should issue NOC. It may ask for public notice and copies of all Agreements of previous transfer.
ajay sethi
(Expert) 16 January 2014
issue NOC .purchaser has protected him self by taking indemnity bond . society is only concerned with fact that all dues are clear till date and that that transfer fees are paid and transfer documents are in order
Kishor Mehta
(Expert) 16 January 2014
With due respect to all the experts,
The society comes into picture only if the share certificate is issued in the name of Mr.'D'.
Society is concerned only as far as the transfer of share certificate is concerned.
For the transfer of share certificate to the name of Mr'D', the society must have demanded to know the antecedents.
If Mr.'D' was not issued the share certificate to his name, the society was at fault to accept him as a member and collect the maintenance charges from him.
In any case the society should demand an indemnity bond from Mr.'D' to absolve it of any future liabilities, and strictly follow the procedure laid down under the Co-operative societies rules.
Good Luck,
Kishor Mehta
Biswanath Roy
(Expert) 16 January 2014
Membership of a Society and transfer of the title of a shop are altogether two different matters. Transfer of share holdings of the Society is easy whereas,transferring title of a shop has some legal obligations which are binding upon the Vendor and Vendee.Your query relates to commercial gain hence, opinion can be given against usual professional terms. If you agree you may mail me by return.My mail ID is bnroy.advocate@gmail.com
D Chavan
(Querist) 16 January 2014
Thanks all the experts for prompt reply. In the above case Society has already transferred the Shares in the name of Mr.D. Society is having xerox copies of all previous transfer agreements. Society does not verify original agreements.(Please tell whether it responsibility on the part of society to verify or should ask for original agreements while transferring)
The system is like this: First the member submits letter to society stating that he wants to sell the flat/shop. After payment of dues society issue NOC. When the copy of Sale Agreement along with forms /documents are submitted for transfer by transferor and transferee along with share certificate the transfer is done as per Bye-law.
The shop was transferred in the name of D as per above system.
Now Mr. D is saying that he has lost two previous transfer documents and he has got a buyer who is ready to purchase the said shop KNOWING THE FACT ABOUT LOST AGREEMENTS.
Kishor Mehta
(Expert) 16 January 2014
Sir,
The Society should verify the authenticity of the sale documents, by comparing the copy with the originals, at the time of transferring the share certificate in a member's name, and should keep a copy of the chain of documents for its records.
The society is concerned only at the stage of transferring the share certificate.
It is the responsibility of the registering authorities to verify the antecedents of the vendor and the purchaser.
Good Luck
Kishor Mehta
