The society has obtained for a Deemed Conveyance. It has declared that there are 10 members of the society against 11 in this application.
1. Can a member dispute the mis-declaration?
2. Can there be a de-registration of the society on the basis of the mis-declaration?
3. Inspection u/s 89-A not carried out for more than 3 years. Can this be another ground ?
Asked 10 years ago in Civil Law
Sh. Kishore Kumar Ganguly,
The society was formed in 1979 with 10 members. The Balance sheets of the society show a Share Capital of Rs. 2,750/- i.e. 5 shares of Rs.50/- each per flat for 10 flats (Total Rs.2,500/-) and 5 shares of Rs.50/- each for 1 garage. Thus, 11 members make the membership of Rs.2,750/-. The garage has not been declared but it is held by a member who is not holding any of the 10 flats and therefore an outsider.
This appears to be mystery as none of the founding members survive and the present one are not aware and therefore an explanation at the General Body meet was not given.
Several irregularities exist. Hence a complaint was lodged. The Dy. Registrar ordered an inquiry u/s 89-A. However, the society managed to avoid it under the pretext of correspondence has been submitted for preparation of Deemed Conveyance. Then, it resolved the issue of complaining member not having a valid membership. The matter came up before the Dy. Registrar for hearing.
Here, the society introduced the heir in place of the complaining member. The heir, being one of the several heirs, did not submit a succession certificate. The Dy. Registrar decided that he was not the authority to decide the issue and closed the issue. Follow-up has been maintained and an RTI has been filed for the current position of the inspection u/s 89-A.
The society then applied for a Deemed Conveyance declaring only 10 members. The Dist. Dy. Registrar also ignored this objection and passed the Deemed Conveyance order. The issue escalates further as to how the 11th member would be accomodated for the contemplated re-development plan of the society.
Asked 10 years ago
Thanks for your reply.
The question is that there are 11 units, 10 residential and 1 other than residential. This is against the 10 flats declared. The garage is a seperate entity on the plot and does not form a part of the main building of 10 flats.
The garage necessarily forms a part of the plot. The fact that the garage was treated and sold as an unit like any other flat of the society and shares were issued to the garage owner because of the sale. The owner therefore became a member of the society.
The conveyance is for the entire plot along with all the in-built structures on it and the garage cannot be isolated for the conveyance for the plot along with structures thereon.
1. Does it therefore not amount to a mis-declaration in the application, one member being short?
2. The garage owner has to be treated as a member as he purchased the garage and consequently holds the shares of the society in the same proportion as that of a flat.. He too would have a share in the plot and the property re-development, He could not be deprived of his right to the area purchased by him in the society plot like any other member. How this right is settled by the re-developer is another issue.
3. Since the right to hold a garage flows from a member's right as a flat owner, the garage could not have been sold to an outsider. The registration and stamp duty is payable on this sale agreement. But the fact is that it was sold, rightly or wrongly, to an outsider and shares were allotted to him. It is therefore a million dollar question which should have been raised by the Dy. Registrar at the time of registration of the society, as you have rightly pointed out. This has not happened then or subsequently.Even after this anamoly was pointed out to the Dy. Registrar and the Dist. Dy. Registrar, it was overlooked by both.
I therefore seek guidance on this please.
Asked 10 years ago
Firstly, my sincere apologies to you for addressing you as Kishore Kumar Ganguly.
Shri Krishna Kishore Ganguly,
Your querry regarding flats as defined in the bye-laws:
Section 2.
Interpretations
(vi) Flat' means a separate and self contained set of premises used or intended to be used for residence, or
office, or show-room, or shop, or godown and includes a garage, or dispensary, or consulting room, or clinic, or flour mill, or coaching classes, or palnaghar, beauty parlour, the premises forming part of a building and
includes an apartment.
Thus, share certificates were rightly issued to the garage owner.
Ofcourse, the definition prevalent in 1979, when the society was registered, is not available.
Asked 10 years ago