You can apply for certified copies of chain documents from the office of Sub Registrar and submit them to the society
For the mortgage also the society would have given a noc
The society's refusal appears to be unreasonable
Property bought under bank auction as the third owner, share certificate still in the first owners name
Bought a bank auction property recently a year ago, just recieved physical possession but when we went to enroll in the society they say it's still under the first owners name, we have copies of documents showing sale done between the first and second owner also a copy of the noc given by the society for the same, then the bank seizing it under sarfaesi and selling and auctioning it, society refuses to update it saying they don't have copies of the noc and the previous owner has to update it first only then can we get it to our name, what are my options and what can be the procedure to do it
Asked 3 months ago in Property Law
Religion: Christian
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15 Answers
Approach first owner and ask him to furnish copy of NOC given by society for transfer of flat ,transfer charges paid to society ,correspondence exchanged with society
We already have xerox copies of the sale deed and the registration done at the registrar between buyer 1 and buyer 2(who defaulted on the loan) followed by the bank procedures under sarfaesi act. The society wants us to update the share certificate in the name of the 2nd buyer(the defaulter) first and then get it to our name, how am I supposed to find them when they were never in the picture for us as we took the property on bank auction, is there an option to skip this step entirely or shld the society update it solely on the basis of the registration and the sale done under sarfaesi act. Also the first owner claims he never sold the house though there are documents and registration claiming otherwise and also a NOC from the society allowing him to sell it.
Asked 3 months ago
To address the issue with the society not updating the ownership records despite your legal ownership of the property, you should first verify that you have all the necessary documents, including the No Objection Certificate (NOC) from the society, the auction sale certificate, and the conveyance deed. Write a formal letter to the society with copies of these documents, requesting them to update their records to reflect your ownership. If the society refuses, you may need to contact the bank or the Recovery Officer who conducted the SARFAESI auction to obtain formal documentation confirming the ownership transfer. If the issue persists, consult a lawyer to send a legal notice or escalate the matter, and consider filing an RTI with local authorities for clarification. Should the society continue to be uncooperative, legal action or intervention from the registrar may be necessary to ensure the records are updated correctly.
Thanks and Regards,
Advocate Aman Verma,
Legal Corridor.
Dear Client,
In this case, the refusal of the societyto update the share certificate in your name is illegal, as you have legaldocuments to prove your ownership through the bank auction under the SARFAESI Act. The society is under an obligation to honor the sale and update its records based on the registered sale deed and other relevant documents. You should first issue a formal written notice to the society, enclosing copies of the sale deed, registration documents, and the SARFAESI auction details, asking them to update the share certificate in your name. If the society still refuses, you may file a complaint with the Registrar of Cooperative Societies for non-compliance with legal procedures. Also, you can initiate a declaratory suit in a civil court seeking a direction to the society to update the share certificate based on your title documents. Since the first owner's claim is contrary to the existing registration records, it is legally not sustainable, and the society cannot demand you to trace the defaulter (second owner). The sale under the SARFAESI Act provides a clear title to the auction purchaser, which overrides any prior claims or disputes.
1st owner never sold the house ? !!
Then that would mean that the property was still his
So when it was put up for auction sale he should have objected to it
Any person who claims that he has not sold the property and that property is being sold in public auction, would obviously object against such auction sale
However here the 1st owner was nowhere in the picture
If the sub registrar records show that the 1st owner sold the house then the 1st owner must be disbelieved when he alleges that he didn't sell
Also the society's requirement to mutate share certificate in name of 2nd owner is clearly unreasonable
How would an auction purchaser get hold of the borrower just boggles the mind
I think you will have to approach the District Dy. Registrar of cooperative societies against the society
Approach the registrar request him to direct society to transfer share certificate in your name
2) enclose copy of sale certificate issued for bank auction
You need to inform the bank if you have bought it in auction
You can issue a legal to the society demanding the membership of the society on the basis of the registered title deed on your name.
Failing to respond you may make a complaint against the society before the deputy registrar of cooperative society for remedy.
Resorting to legal action will be the next option for you.
You may consult an experienced lawyer in the local and proceed as suggested.
The society has agreed to update the share certificate if the bank issues a letter stating they defaulted in updating the certificate during the second owners ownership and if we pay transfer fees for updating it to the defaulters name and then to us , is this the only way or can it be directly updated to my name on the share certificate and how can that be done?
Asked 3 months ago
You should pay the transfer charges for updating the share certificate in the defaulters name, and then in your name
The actual process to update share certificate is to first transfer it to your vendor and then to your name.
If the bank refuses to pay the transfer fee for your vendor then you may have to bear it and then decide about recovering the same from your vendor
It can be directly updated in your name as you have bought the same
Bank will not give any such letter
As regards the transfer fee , if it's 25k per transfer , then I'd suggest pay the 50k and buy peace rather than litigating
The society's demand to update the share certificate first in the defaulter’s name and charge transfer fees twice is not legally justified. Under the SARFAESI Act, as the property was auctioned by the bank, ownership has transferred directly to you, and the society is obligated to update the share certificate in your name based on the registered sale certificate and possession documents. The society should not hold you responsible for the second owner’s failure to update the certificate. You can negotiate to pay only a single transfer fee for updating it directly to your name. Additionally, you may request the bank to issue a letter clarifying that the property was sold under SARFAESI, which further supports your position for direct transfer without going through the defaulter’s name.
Thanks and Regards,
Advocate Aman Verma,
Legal Corridor