• Issue of Duplicate Share Certificate in a Co-op Housing Society

After issuing a duplicate share certificate to a member of a co-operative housing society, how does the society ensure that if the first certificate is not misused if it is it submitted?
Asked 2 years ago in Property Law from Mumbai, Maharashtra
1) society insists on indemnity bond from member 

member must agree to indemnify the society for all cost, expenses that with regards to the issue of a Duplicate Share Certificate. The member should also give an undertaking that he has not mortgage or pledged the Share Certificate with any financing agency. 

2) further the society  invite objections by affixing a notice on the notice board of the society. If no objections are received within fifteen days from the date of affixing the notice on the notice board of the society then the society may proceed to issue a Duplicate Share Certificate. 

3) society also insists on public notice for issue of duplicate share certificate 

the undertaking by member , indemnity bond , publci notice is suffficient to protect interest of society in case of any fraud by member
Ajay Sethi
Advocate, Mumbai
23375 Answers
1225 Consultations
5.0 on 5.0
1. For issuing duplicate certificate the society does not hold any responsibility. on the contrary the member has be satisfy the destruction or missing of the original.

2.If the original is misused the member will be hold responsible.

3. Before issuance of duplicate getting a copy of police information about loss, execution of indemnity bond or public notice are standard precautionary method.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
1. First of all why should the society issue the said duplicate share certificate? 

2. The Society will decide about issuing the said duplicate share certificate only on receipt of an application from the concerned share certificate holder who has to show reason for applying for the duplicate copy like stolen/missing etc.,

3. The Society will then ask for a police diary for the said loss and an affidavit affirming the said loss,

4. Only on being satisfied by the authenticity of the loss, the Society will issue duplicate copy of the lost share certificate,

5. The original copy of the said share certificate will have no enforceable/effective value after its duplicate has been issued in lieu thereof.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
1. They moment the duplicate  share certificate has been issued by the society based on the application and affidavit submitted by the original share certificate holder informing and affirming the loss of his said original certificate, the effectveness of the original certificate before the society has ceased to exist,

2. The  original share certificate was held by its holder alongwith its effective value. The said share of the society can be transferred by the society in some other's favour if applied by its recorded holder. When the said holder himself affirmed its loss and collected duplicate share certificates in lieu of his original certificate, he can not ask for its transfer any further,

3. So, the Society will record about the loss of the said original certificate and issue of duplicate certificate against the same which will render no more than a scrap value of the said lost original share certificate, even if it is found later on.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
Well, I hold slightly separate opinion.
The duplicate certificate does not crush the original certificate tall and the original certificate can operate as normally as usual practice allows. 
It is like you have lost the original key and got a duplicate key prepared for the same lock.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
1) once member has informed society about loss of original certificate and duplicate certificate is issued by the society after fulfillment of all legal formalities original certificate cannot be used by the member . 

2) society will not entertain any requests from the said member for transfer of flat on basis of lost share certificate 

3) further in event   said member fraudulently misuses said original ceritficate indemnity bond issued by the said member is sufficient to safeguard interests of society
Ajay Sethi
Advocate, Mumbai
23375 Answers
1225 Consultations
5.0 on 5.0
1) original and duplicate share certificates cannot be allowed to operate simultaneously 

2)original will be treated as cancelled like railway ticket –if duplicate is issued –original is of no use.

3) society safeguards its interest by issuing public notice and obtaining indemnity bond from member
Ajay Sethi
Advocate, Mumbai
23375 Answers
1225 Consultations
5.0 on 5.0
1. The share in question is the share of a Co-Operative Housing Society formed by its members who are essentially owners of the flats for the maintenance  of which the said Society has been formed, 

2. No body other than the flat owners can be a member of the society,

3. All the members buy shares of the society and are issued one share certificate each,

4. These share certificates are transferred in the name of thrid parties when and only when the third parties buy the flats from the present flat owners by executing and registering Sale Deed after taking NOC from the Society,

5. Such share certificates of Co-Operative Housing Societies are not traded in the market to be operative in any way,

6. To make it operative, the present owner shall have to surrender it to the society with an application for transferring in favour of his buyer and if he has already collected a duplicate of the same share certificate after affirming under affidavit that the original was lost, the the said original share certificate can not be further produced by him for transferring it in some other's name,

7. Here, no share certificate, whether original or duplicate, can be made operational without the transfer of title of the flat in some other's name.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
14158 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23375 Answers
1225 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18243 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
Atulay Nehra
Advocate, Noida
444 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2786 Answers
41 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
5.0 on 5.0
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1954 Answers
65 Consultations
5.0 on 5.0