• No Dues/ NOC from Society for Sale of Flat

Can the Society refuse No Dues / NOC Certificate or transfer of Share Certificate on the basis of the buyer being a Non-Gujarati, even though there are no outstanding charges to be paid to the Society by flat owner? The Indian citizen is just a hard-working businessman having no criminal background.
Asked 2 years ago in Property Law
Religion: Hindu

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8 Answers

Society cannot refuse to give NOC  merely because buyer is not a gujrati 

 

file police complaint against office bearers of society 

 

also complain to registrar against society refusal to give NOC 

Ajay Sethi
Advocate, Mumbai
94514 Answers
7485 Consultations

5.0 on 5.0

Such refusal is completely illegal if the person to whom the flat is sought to be transferred is otherwise eligible to be admitted as a society member 

Yusuf Rampurawala
Advocate, Mumbai
7483 Answers
79 Consultations

5.0 on 5.0

Hello, 

  1. No, the Society cannot refuse the No Dues/NOC on basis of region or religion  or cate a person belongs to. Thus is illegal and arbitrary. 
  2. Issue a legal Notice to the Housing Society demanding immediate issuance of the no due NOC. 
  3. If the Society still refuses, you can lodge a complaint with the Deputy Registrar of Societies or file a suit against the Society in the civil court. 

S J Mathew
Advocate, Mumbai
3545 Answers
175 Consultations

5.0 on 5.0

Dear Client,

A person does not require a no objection certificate (NOC) from the society at the time of transfer of a flat. Bye-law No 38 prescribes a list of documents required for selling a flat, but nowhere is it mentioned that the society’s NOC is mandatory,’’ Supreme Court case (Sanwarmal Kejriwal v/s Vishwa Cooperative Housing Society, Churchgate) where the court had ruled that a society could not bar the admission of a member if he met with the qualifications laid down under the bye-laws.

Thankyou.

Anik Miu
Advocate, Bangalore
8742 Answers
109 Consultations

4.7 on 5.0

The society cannot refuse to furnish the NOC or share certificate for the said reasons.

You may apply for them in writing and get a reply in writing about the decision to reject or refuse to entertain your application signed by the president of the secretary of the society.

After that you can approach District consumer commission with a complaint against the president/secretary of the association seeking damages/compensation for the deficiency in service and also a direction to furnish the desired certificates. 

T Kalaiselvan
Advocate, Vellore
84709 Answers
2172 Consultations

5.0 on 5.0

In all fairness, such a condition restricting transfer of ownership to persons of a particular class of persons is violative of Sec-10 of the Transfer of Property Act. However, the Hon'ble Supreme Court ruled in favour of the Zoroastrian Co-operative Housing Society which restricted transfer of ownership to persons of a particular class and held that such a condition (of restriction) was not violative of Sec-10 of the TP Act. That is the legal position, as on date.

Swaminathan Neelakantan
Advocate, Coimbatore
2773 Answers
20 Consultations

4.9 on 5.0

No it can't be done. It's unconstitutional and illegal. You can complaint to dy registrar of societies for the same

Prashant Nayak
Advocate, Mumbai
31800 Answers
175 Consultations

4.1 on 5.0

 - Under the Maharashtra Ownership of Flats Act, there is no such provision, where an owner has to take NOC from the Society if there is no dues of any charges  at the time of selling the flat to another person. 

- Further, being the registered owner in possession of the property, under Transfer of property Act, you have full right deal with the said flat, and the society has no right , title or interest over your flat , except charging the maintenance amount.  

- Further, as per law, a society/RWA has no legal authority, to issue moral, ethical and social diktats to its residents.
- Further, Society by law and resolutions must be limited to the mandate of governing the society’s affairs and nothing more.

- Hence, the said society cannot refuse to issue NOC on the ground of that the purchaser is non Guajarati.

- You can lodge a compliant against the society before the Registrar. 

- Further , such act of society also attract a criminal offence as well. 

Mohammed Shahzad
Advocate, Delhi
13087 Answers
195 Consultations

5.0 on 5.0

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