• Can society deny shares certificate to a maintenance defaulter

Does society has right to hold the issuance of shares certificate on account of defaulting the maintenance payment?
Asked 4 years ago in Property Law
Religion: Hindu

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9 Answers

If member fails to pay maintenance society can delay issue of share certificate till society dues are paid 

 

society can take recovery proceedings against defaulter 

Ajay Sethi
Advocate, Mumbai
97493 Answers
7881 Consultations

No

The society has already accepted the person as its member 

If there is a default in paying maintenance by the concerned member then nothing precludes the society from taking appropriate steps against such defaulter member

However the share certificate cannot be denied to be issued to that member just on the ground that he has not paid maintenance 

Yusuf Rampurawala
Advocate, Mumbai
7747 Answers
79 Consultations

Withholding issuance of share certificate is totally illegal where a member has made all payments towards cost of land or plot and construction of house or apartment. 

Society can take necessary steps for recovery of maintenance due as per prescribed method only. 

Complain to the Registrar of Societies and claim compensation. 

Or first issue a legal notice to this effect. 

In default take legal action. 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

Default in making maintenance doesn't debar a member to transfer share certificate with ownership. 

Devajyoti Barman
Advocate, Kolkata
23330 Answers
522 Consultations

- As per Supreme Court, No society is entitled to disconnect or suspend common amenities , and only can issue a legal notice to the defaulter and if he/she does not pay the same, then approach the court for recovering the dues of maintenance. 

- Hence, if any flat owner is not paying the maintenance charges, it is open to the association to demand the same from the defaulting member in accordance with law, but cannot refuse to issue of shares certificate. 

- You can lodge a complaint before the management of society , and on refusal lodge your complaint before Registrar of Society .

Mohammed Shahzad
Advocate, Delhi
14758 Answers
224 Consultations

Yes,as per the bylaws and MCS Act and rules.

Ganesh Kadam
Advocate, Pune
12997 Answers
264 Consultations

The default in the settlement or payment of maintenance amount will not amount to holding back the share certificate. 

You can issue a legal notice demanding the same failing which you may drag the society to the consumer forum for relief and remedy. 

 

T Kalaiselvan
Advocate, Vellore
87695 Answers
2355 Consultations

It may be possible if there is any rules in the Byelaws of the Society and not otherwise.

Nadeem Qureshi
Advocate, New Delhi
6319 Answers
302 Consultations

No they cany deny. They can recover the same through 101 recovery procedure

Prashant Nayak
Advocate, Mumbai
32859 Answers
209 Consultations

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