• Can society refuse for NOC?

X is a member of CHS and is holding share certificates in respect of Flat No. 1 & 2. Flat 2 was purchased by X’s father. For convenience and better utilization X and father interlinked the two flats into one big unit. X’s father died and pursuant to family arrangements between X and legal heirs Flat 2 was transferred in the name of X.
On request of Y from same society given one of the room and bathroom of Flat 2 for a short period out of pure goodwill and was gratuitous. As Y did not vacate X had to initiate legal proceedings. During pendency of the proceedings, Z sought to intervene through chamber summon. X recovered passion and withdrew the proceedings. Z has not filed any independent proceedings against X tried to challenge the withdrawal which was not allowed by court. Z has now resorted to filling writ petition in the High Court in Aug ’16 and neither copy of WP nor a notice has not been served on X and not removed the office objection raised in sept’16. It is in pre-admission stage. X want to sale flat No. 2. Z has sent a notice to society not to issue NOC till the outcome of litigation.
1.	Can society refuse for NOC?
2.	Indemnity Bond from X to Society will help in getting NOC?
3.	What next step to be taken by X?
4.	Approaching Co-operative Appellate Court advisable?
Asked 7 years ago in Property Law
Religion: Hindu

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6 Answers

1) yes society can refuse to give NOC in view od pending legal proceedings

2) indemnity bond would not help in issue of NOC

3) approaching appellate court is not advisable

4) if Z does not remove office objections his writ petition would be dismissed

Ajay Sethi
Advocate, Mumbai
95533 Answers
7656 Consultations

5.0 on 5.0

1. Who is Z , you are totally silent on his relation to this dispute.

In general NC is not mandatory to sell a society flat if the refusal of society is unwarranted and without any basis.

Society can not stand in the way of a legitimate owner to sell his proeprty to anyone he chooses.

2.Indemnity Bind should help by X is not bound to furnish such Bond either.

3. X should proceed to sell the flat.

4.X can lodge complaint with the Registrar of society but such proceedings takes time.

Devajyoti Barman
Advocate, Kolkata
22994 Answers
501 Consultations

5.0 on 5.0

1. The society cannot refuse the NOC on the mere ground that a writ is pending. Unless there is a stay ordered against the sale by X he is free to sell the property, in which regard the society is bound to issue the NOC to him. If the NOC is denied then X may file a suit for mandatory injunction against the society.

2. Indemnity bond is not required if no injunction has been ordered against X.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) the society would not take the risk of issuing NOC in view of pending legal proceedings

2) if objections are not removed petition would be placed before prothonotary and senior master for dismissal

3)it should not more than 6 months

4)Z may file appeal before Supreme court

Ajay Sethi
Advocate, Mumbai
95533 Answers
7656 Consultations

5.0 on 5.0

The society cannot refuse NOC based on Z's notice.

The society has to decide about this as an alternative remedy

T Kalaiselvan
Advocate, Vellore
85734 Answers
2266 Consultations

5.0 on 5.0

The WP has to be contested properly.

Wait for his next move.

Since Z is not having title or valid documents, he may not succeed in his attempt, therefore he may not approach SC.

But you must be vigilant about this.

T Kalaiselvan
Advocate, Vellore
85734 Answers
2266 Consultations

5.0 on 5.0

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