If the auction buyer is producing the sale certificate and the registered sale deed on his name for the property he purchased through auction sale invoking the provisions of SARFAESI act, the society cannot refuse to issue a fresh share certificate to the new buyer. The society can cancel the old share certificate on the basis of the documentary evidences produced before it along with an application seeking to cancel the same and transfer the share certificate in favor of the new purchase of the property.
Transfer of share certificate of property sold under Sarfaesi Act
My property was auctioned under sarfaesi Act. The original share certificate is in my custody. it was not recalled from me for transfer nor by the bank before auction of property. . Can the society issue duplicate share certificate without cancelling original share certificate. is there a procedure for this.
Asked 3 years ago in Property Law
Religion: Hindu
10 Answers
Bank insists on deposit of original at the time of disbursement of loan, it seems they are not so deposited. In such case duplicate certificates can be issued to auction purchaser. With declaration that previous are cancelled.
Can a property in a co operative society have 2 share certificates of the same property? one is original & it is in my custody which is not cancelled nor recalled from me by the bank before auction sale & registration of my property & also not recalled from the society for transfer of the original or cancellation of the original by the society and the other one is duplicate issued by the society without cancelling the original. Am I still the member of the society as the original is not cancelled.
Asked 3 years ago
Society has to be informed about theft or loss of original share certificate .you have to make application for issue of duplicate share certificate.enclose copy of FIR .indemnity bond to indemnify society in case of third party claims being made
society would issue of public notice before issue of duplicate share certificate if no objections are received within period of 15 days of issue of public notice society would issue duplicate share certificate
As the certificate is not deposited, it is not possible to recover the same from debtor. It was lapse on bank’s part. But lapse can be overcome by releasing a second certificate cancelling the earlier by making a declaration to that effect.
Dear client, they can.
If the society has issued a fresh share certificate to the new buyer based on the sale certificate and sale deed on auction sale, then the records of the society in this regard would automatically updated as per the latest status.
Therefore the share certificate already in your possession shall be deemed to be cancelled, hence you may not be permitted to claim any rights in the activities of the society.
If you file any complaint that your original is misplaced or not in existence then only a duplicate is issued by society on indemnity bond
- Yes, the society can issue a duplicate share certificate even without recalling the original , if the property is sold to other person and he produced the documents in support of the ownership.
- Since, the said property is already registered in others name by the bank in auction ,then the purchaser can produce the supporting documents before the society to issue share certificate in his name.
You cannot have 2 share certificates
duplicate is issued only if original is lost or misplaced or stolen
society will cancel duplicate if original is produced
For a sale under the Sarfaesi Act, no such formalities are required. As your property has already been sold, you shall automatically lose your membership.
