Transfer of property in a Housing Co-op
Dear Sir,
My father being member of a housing co-op socy under the West Bengal Co-operative Socy Act had obtained a sub-lease on a plot of land via a deed of conveyance in the year 1978, the sub-lease was for a period of 99 years.
In 2003, my father wanted to sell his house and applied for permission for transfer of lease-hold rights and membership to his tenant.
Socy took my fathers letter as resignation(even though he never used that word) and took resolution to transfer his sub-lease plot with constructed house in favour of tenant.
Socy got permission from registrar and gave membership to our tenant. My father entered into an agreement for sale to his tenant, however the property was never sold and the transfer also could not be completed. The tenant never paid full consideration money to buy the property. The tenant is in possession of the property.
Now, Father died in 2009 and present situation is that we have inherited the property and the co-op claims that our tenant is the member.
It is a strange situation.
My question is:- Can a Co-operative Housing Socy. in West Bengal transfer the Sub-lease to our tenant when the sub-lease has already been conveyed to my late father for 99 years(as per earlier deed)? Particularly when the property has not been sold yet and the original member has not transferred his property.
Regards
Sumit Basu
Asked 9 years ago in Property Law
Religion: Hindu
Dear Sir,
Thanks for the reply. Not, that there have been litigation on these facts.
The agreement of sale was supposed to be acted upon by 31st August 2005. The tenant never paid balance consideration however after the expiry of the agreement as per the above date the socy issued a share cert in favour of the tenant (my father never surrendered his share cert). Immediately after getting the fresh share the tenant instituted a suit for declaration that he is a member (tenant in his petition did not ask for transfer of property as per the agreement) and confirmation of possession in the local civil court in the year 2005. The suit was dismissed by the court in 2011 on grounds that possession without title has no meaning and that there is no suit for specific performance of contract on behalf of the tenant and that my father being the valid holder of conveyance deed was the member and that the plaintiff remained to be a tenant. The tenant preferred an appeal which is now pending.
Father died in 2009 and we the legal heirs got substituted in the suit. In 2012 i made an RTI application to the Registar of Co-op socy and came to know of the fact that my fathers letter was considered as resignation and the co-operative had resolved to transfer our property.
Now, the property still stands in my fathers name, and we pay our property taxes on time. The socy did not act as per its resolution to transfer.
Regards
Sumit Basu
Asked 9 years ago
Dear Sir,
Thanks for your advice. The suit is currently under appeal, hence the socy is unable to act, and there is no suit for eviction of tenant, i forgot to mention that my father had on 15.09.2005 by his letter to our tenant had cancelled the agreement and the tenant never replied to my father's letter and the earnest money advanced by the tenant was not returned.
Now, after the RTI, I with my mother preferred a dispute to the WB Co-op Registrar challenging the resolution and the decision to take my father's letter as resignation. Unfortunately we failed to get the award, and the said letter of my father in the words of the arbitrator is :-
"in utmost good faith can be treated as a resignation cum recommendation letter"
and that the resolution of the socy to affect the transfer of the plot on their own will is valid. Important to note that the socy against which the dispute was preferred never submitted any written statements - even after specific direction by the arbitrator.
The arbitrator is the assistant registrar and had admitted to us during the hearing that since the approval of such membership was obtained from his office, he is doubtful if he could give any relief.
So, it seems as per Registrar a person in housing co-op under WB Socy Act can be a member without a valid title in property.
I am moving the tribunal on this.
I am looking for valued advice on this forum members since i have had a lot of harassment and mental pressure with this matter.
Regards
Sumit Basu
Asked 9 years ago
Dear Sir,
The content of my father's letter is below:-
To,
... socy
Sub:- prayer for permission of transfer of membership/sale
Sir,
1. I am the lease-hold owner of a house plot no. ** .
2. That sri xxx has been residing in my said house as a tenant since july 1997.
3. That i want to transfer and sale lease-hold rights, title and interest
4. That i want your permission for sale and transfer of lease-hold right, title and interest in favour of sri xxx
and i also want to transfer the membership in favour of sri xxx.
Therefore you are requested to do the needful for transfer of membership and for the sale/transfer of my said house and oblige.
And the resolution taken by the socy goes like this:-
"the committee unanimously agreed to accept sri xxx as a member of the co-op socy in lieu of sri basu, the committee also agreed to transfer sri basu's lease-hold land along with constructed plot on this land to sri xxx the present tenant ..."
The registered deed of sub-lease of my father has a covenant:-
"not to assign, under let or part with possession of the demised land and building, or any part thereof without first obtaining written consent of the Sub-Lessor"
As i now understand, that once conveyed by way of sub-lease for the period mentioned, the socy is limited to the extent of giving a consent/NOC, strangely the resolution speaks about transfer by their own motion. Also, the resolution speaks nothing of resignation. However when i received this document upon RTI, i foubd someone has written "Resignation" by hand on the letter. The sub-lease has no provision on how to deal with resignation. Also as per Sec 85(9) of the WBCS Act 1983(relevant to my case) - the right to transfer an allotment is vested to the outgoing member transferee upon consent from the socy and permission from registrar as per rule 142(1).
Now, the socy issued fresh share to tenant and inducted him as member, my father never surrendered his share and he was never communicated about such resignation and allotment of a fresh share. It was only in 2009 when the tenant filed affidavit in chief in the civil case we came to know about a share certificate. The co-op though resolved but never did transfer the lease. This has given rise to the present situation.
And when i go to the registrar on reference to a dispute I find judicial officers(arbitrator) has started to use faith rather than reason to adjudicate matters.
I am very much frustrated after fighting for all these years since 2005. Do i have hope?
Regards
Sumit Basu
Asked 9 years ago
That is exactly the position taken by the socy, however they did not provide any written statement while appearing in the dispute inspite of specific direction by the arbitrator.
Now, I believe that a resignation implied or explicit can be taken to be effective from the date of acceptance, as I had said earlier our father never surrendered his share certificate and the socy also never refunded his share money and in-fact no attempt was made by the socy to inform my father of the fate of his letter, membership and of his share . Father’s letter was on Feb 2003 and the resolution was in Mar 2003, strangely on pursuing the audit reports for the year 2002-03, 2003-04 and 2004-05 we find our father’s name very much in the list of share holders for those years – can that be possible if resignation and subsequent resolution was deemed to be complete by Mar 2003. Also the tenant has been given a fresh share certificate in Nov 2005. i.e. after the expiry of the agreement. Immediately after getting the share certificate the tenant went for a civil suit in the local court asking for:-
(a) declaration that he is a bonafide member
and
(b) declaration of injunction that his possession on the suit property be not disturbed by my father and the socy.
Our knowledge of this fresh share happened in 2009 when the tenant plaintiff in the suit submitted his affidavit-in-chief.
Very strangely the arbitrator observed in his award that the discrepancies in the audit reports was due to lack of procedural knowledge of the socy which was later rectified. As I understand that such audit reports are placed in general body meeting and accepted to be correct. If the letter was taken to be a resignation then there are provision in the WBCS Act to deal with such resignation.
Asked 9 years ago
Dear Sir,
My father had categorically informed the socy's then secy about his cancellation of the agreement. The new share certificate was issued by the new board of directors. Even if i assume there was a mis-communication between the outgoing board and the new one, one of the signatory(president) on the new share certificate was also a witness to the agreement of sale.
The main problem is that the assistant registrar had approved the membership of the tenant in Aug 2004 and all these years the socy has been flatly putting the blame on the registrar.
Now, when we pursued the matter as a dispute under the provisions of the WBCS Act, the assistant registar shyly tells us during the hearing that since the approval of such membership was obtained from his office, he is doubtful if he could give any relief.
And when the award is given by the assitant registrar the said "approval" is now termed as "permission" in the award.
Regards
Sumit Basu
Asked 9 years ago
Dear Sir,
We had given written arguments from our side and in our written argument we had cited the following judgment(we gave full text along with AIR citation numbers) amongst others - can i please have your opinion on this judgment(particularly para 3 and para 5). The arbitrator seems to have given no value to it.
Regards
Sumit Basu
Asked 9 years ago
On top of all these - the tenant has not paid rents since 2005.
And now, he wants to add this arbitral award as additional evidence under O41/R27-aa/b in his appeal petition.
Asked 9 years ago