LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

JAIPRAKASH   19 August 2021

Society is not transferring office in my name

I have purchase office from NCLT auction, it was 4th auction in which I purchased office premises from NCLT. I am practicing chartered accountants, I have submitted all the requisite transfer document to the society, the society secretary is also practicing chartered accountants but very worst person ever I have seen in my life,  he is interested in my property, and recently received one simple letter without any attachments from one of advocate of operational creditor, requesting society not to transfer property on my name, the said operational creditors claim is already rejected by NCLT court in its speaking order, but secretary is saying that the said operational creditor filed application with high court for execution of arbitration award decree. As I understood that, NCLT award is final award and cannot be challenged unless auction held improperly, in my case the bank is financial creditor and filed insolvency application against company for non-payment of company mortgaged loan and NCLT pronounce award in favor of bank and order liquidation and liquidator has sold the property in auction which I bought. Kindly guide me, if clean auction won’t get registered, it means all auction sale are not a clean sale? Is there no value of clear cut court order? How can such creepy secretary ignore the clear cut order, finally I am affected party.



Learning

 3 Replies

Kevin Moses Paul   19 August 2021

As per the situation that you're currently dealing with let me inform you that currently there's no such matter that fits your situation due to which no proper citation can be provided for the same.

However, as per the scenarios and issues you've explained above it's better that you report the matter (complaint about Society Secretary along with the advocate who is trying to misuse his knowledge and approach) before NCLT itself because once the matter is before NCLT strict actions will be taken against the accused (i.e. the Society owner as well as the advocate).

Now, coming to the advocate issue let me inform you that there's no need to worry as any claim raised by him in court can be easily challenged and revoked since you have are legally entitled as owner of the office as per the order issued by the NCLT. Thus, there's nothing to be worry about.


Hope it Helps!

Regards
Kevin M. Paul

JAIPRAKASH   19 August 2021

Dear Kevin Moses sir

First of All thanks for giving your valuable time to reply my query and giving fantastic courage to me. 

I am my self practicing chartered accountants, and advise many people on taxation as well as non taxation issue, but when adverse situation comes  on us and we become advise seeker then we realize its impact.

My case  is clear cut, but still I am begging with folded hand from secretary, always polite, he treat any member visitor  like dog, never talk professionally, from his act it appear that he will stretch me  for long battle and never allow me to get property transfer in my name. I learned from my situation that, court order can be rolled, fold , or make a fun it to harass any person.

The problem is that,  I have to get Finance by mortgaging  that  property and if situation stretch further I will go in financial drain. 

Actually, person who is harassing me  is from my same profession that is surprising. 

As in your response, can u guide me how can we take such strict action against office bearer, to whom I have to approach and how long it takes time.

Kevin Moses Paul   19 August 2021

As per your concern let me tell you what you're supposed to do in such a situation where someone is imposing unreasonable restrictions upon you.

In accordance to the legal context, the proceeding by that moves the court for satisfaction of decree is known as Execution Proceeding. Execution is the medium by which a decree holder constrains the judgment-debtor to do the command of the decree or order as the case may be. It empowers the decree holder to recover the products of the judgment.

In more simple definition, the term “execution” refers to implementing or enforcing or giving effect to an order or a judgment passed by the court of justice, and that's what you should proceed with.

The Order 21 of the CODE of CIVIL PROCEDURE (i.e. CPC) deals with the solemn act of EXECUTION OF THE DECREES passed by the Courts from grassroots to the top.

Moreover it is very important for you to know that it is only the execution, which reveals and signifies the importance of the decrees to be passed and the pedestal of the Court and sanctity of the document.

Now, let me clear your mind regarding the court proceeding that will be involved and whether it will involve tedious process of litigation or not.
See, in a recent matter the Apex Court of the country [i.e. The Supreme Court] pronounced its opinion about the Execution Petitions. The SC in this regard held that — "We strongly feel that there should not be unreasonable delay in execution of a decree because if the decree holder is unable to enjoy the fruits of his success by getting the decree executed, the entire effort of successful litigant would be in vain…”

Thus, the court's now don't take or indulge into too long or tedious processes of litigation for acting upon an Execution Petition. Hence, the matter will be solved in a minimum span of time, so no need to worry about that.

In addition to all this for your assistance I'm laying more input regarding where the execution petitions can be filed and which courts will entertain it. According to the section 37 of the Code further establishes the scope of the expression “court which passed a decree” with the object of enabling a decree-holder to recover the fruits of the decree.

The courts which fall under this expression are listed below:
⭕The court of the first instance;

⭕The court which actually passed the decree in case of appellate decrees;

⭕The court which has jurisdiction to try the suit at the time of execution, if the court of first instance ceased to exist;



⭕The court which at the time of execution had jurisdiction to try the suit, if the court of first instance has ceased to have jurisdiction to execute the decree.

Lastly, here is a case law in which the Society Secretary was compelled to transfer the property based upon the court's orders, have a look at if for more detailed information-
https://indiankanoon.org/doc/95342088/


Thus, file an EXECUTION PETITION and the NCLT will make sure that the society abides with the orders of the NCLT that have been given in your favour.

Hence, there's no need for you to worry about either the advocate involved in your matter or the Society Secretary (who is also a CA just as you are). They are misusing, their power and approach, but they will be rightly held for their acts.


Hope It Clears Your Doubts!


Regards
Kevin M. Paul

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register