• Issuance of share certificate

Subject: Issuance of share certificate by society (one year old society) to second and subsequent owners of the flats

Dear all,

This question is related to a house purchased in Karjat - Maharashtra.
The said house was purchased around August 2011. The peaceful and vacant possession of the said house was taken around Aug-Sep 2012. The said house was initially purchased by another individual on his and his wifes name. When I purchased the said house, a deed of assignment was executed by way of which I have become the purchaser and the original purchaser has given up the rights to the house. The said deed of assignment between the original purchaser(s), the builder and me has been duly registered at the Karjat registrar's office.

Around Nov 2014 - the process of society formation began and accordingly the society was formed. I have made all due payments by way of maintenance, etc to respective suppliers such as builder and the newly formed co-operative society. There are no dues pending from my side to any concerned party.

The chain of documents relating to the ownership of the said flat has been provided to the society along with the necessary KYC and PAN details.

Around Nov - Dec 2016 the society informed that the share certificates will be issues in two phases. First phase - the first owners will get the share certificate. In second phase, the share certificates will be issued to the second and subsequent owners (However the said share certificate will have the name of the first owner). 

Further to the above the society has stated that the name transfer (endorsement on share certificate) to second and subsequent owners will be done post the AGM - which is to be held around April 2017.

I would like to be provided suitable advice :- 
Is this the correct process by law? 
Is the society following the most efficient legal path? 
Can the society not proceed to endorse the share certificates with the names of second and subsequent owners without having AGM? 
What is the amount of time the society be allowed to issue the said share certificate to the second and subsequent owners? 
What legal action can be take if the society does not provide the share certificate to the second and subsequent owners and does not provide a valid reason for their action?

Thanks in advance
Asked 7 years ago in Property Law
Religion: Christian

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4 Answers

1) i presume transfer of flat has been with the consent of the builder

2) builder can forward to the society name of persons who are the current flat owners at time of formation of society

3) society can straight way issue share certifcates in their names

4) if society does not provide share certifcates to second and third owners you can complain to consumer forum against the society for deficency in service and seek orders to direct issue of share certifcate to the subsequent co owners

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

The procedure followed by the society shall be in accordance with the bye laws in this regard.

You must visit the bye laws for confirming this position.

The AGM is the apex body of the society to take any policy decision with the approval of all members or at least the majority which is a mandate as per law.

The time taken shall be decided in the AGM

A legal notice can be issued demanding the share certificate.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

1) if builder has not constructed flat as per sanctioned plan no OC would be issued by muncipal corporation

2) file complaint against builder before consumer forum to direct builder to obtain OC from muncipal corporation

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

This appears to be a gross violation and the authorities may not entertain any application to regularise this irregularity.

However you can issue a legal notice to the builder demanding him to rectify this irregularity or else face the music of law through consumer forum or any other competent court of law.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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