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Reckoner Procedure

  • Property Transfer Procedure - Procedure for Transfer of flats in co-operative societies.

Definitions 

1. Housing Society means a society the object of which is to provide its members with open plots for housing, dwelling houses or flats or if open Plots, the dwelling houses or flats are already acquired, to provide it’s members common amenities and services.

2. Member means a person joining in an application for the registration of a co-operative Society which is subsequently registered or a person duly admitted to membership of a Society after registration and includes a nominal, associate or sympathiser member.

3. Associate member means a member who jointly holds a share of a society with others, but whose name does not stand first in the Share Certificate.

4. Nominal member means a member admitted to membership as such after registration in accordance with the bye-laws. It is noted that a nominal member is treated as a member of the co-operative society as held in K.K.ADHIKAR vs. T.G.KULKARNI and others 1980 C.T.J. 241.

5. Society means a co-operative society registered, or deemed to be registered, under this Act. It is to be noted that a proposed society cannot be covered under the definition as held in CNJ 196 (Bom.) 1984 in the case of Beed Dist. Central Co-op and M.P. and D. Federation vs. State of Maharashtra.

  • Formalities - Formalities to comply

A member, desiring to transfer his shares and interest in the capital/property of the society, shall give 15 days notice of his intention to do so to the Secretary of the Society in the prescribed form, along with the consent of the proposed transferee in the prescribed form.

On receipt of such notice, the Secretary of the Society shall place the same before the meeting of the Committee, held next after the receipt of the notice, pointing out whether the member is prima-facie eligible to transfer his shares and interest in the capital/property of the society, in view of the Provisions of Section 29(2)(1) of the Act.

In event of ineligibility of the member to transfer his shares and interest in the capital/property of the Society, the Committee shall direct the Secretary of the Society to inform the member accordingly within 3 days of the decision of the committee.

If the Committee is satisfied that the member is prima facie eligible to transfer his/her shares and interest in the capital/property of the society, the Committee shall direct the Secretary of the Society to inform the member within 3 days of the decision of the Committee to make the compliance as under:

  • To submit an application for transfer of his/her shares and interest in the capital/property of the society, in the prescribed form, along with the Share Certificate
  • To submit an application for membership of the proposed transferee in the prescribed form
  • To give valid reasons for the proposed transfer
  • To discharge all the liabilities of the society
  • To pay the transfer fee of Rs. 50/-
  • To remit entrance fee of Rs. 10/- payable by the proposed transferee
  • To pay the amount of premium at a rate to be fixed by the general body meeting not exceeding 2.5 percent of the difference between the book value of the flat and the price realised by the transfer, on transfer of his flat, or Rs. 25,000/- (Rupees Twenty-five Thousand Only) whichever is less. No additional amount by way of donation, etc. will be taken unless it is paid voluntarily by the member.
  • To submit No Objection Certificate required under any law for the time being in force or order or sanction issued by the Government, any financing agency or any authority
  • To furnish the undertaking/declaration in compliance with the provisions of any law for the time being in force, in such form as is prescribed under these bye-laws.

Note: The condition at Sr. No. (vii) above shall not apply to transfer of Shares and interest of the transferor in the capital/property of the Society to the member of his family or to his nominee or his/her legal representative.

(a) The procedure for disposal of application for transfer of shares and/or interest of members in the capital/property of the Society as laid down under the model bye-laws No. 67 shall be followed by the Secretary and the Committee of the Society.

(b) The managing committee or the General Body, as the case may be shall not refuse any application for admission to membership or transfer of shares and interest in the capital/property of the society except on the ground of non-compliance of the provisions of the Act, the Rules and the bye-laws of the society or any other law or order issued by the Government in exercise of the statutory powers vested in it.

(c) If the decision of the Committee/General body meeting as the case may be, on the application for the transfer of shares and/or interest in the capital/property of the society is not communicated to the applicant within 3 months of its receipt, the transfer application shall be deemed to have been accepted and the transferee shall be deemed to have been admitted as a member of the society as provided under Section 22(2) of the Act.

(d) Any transfer made in contravention of the Act, Rules or the bye-laws will be void and will not be effective against the society.

The transferee shall be eligible to exercise the rights of membership on receipt of the letter in the prescribed form from the society.

-By Vimal Punmiya, B. Com, L.L.B.(Gen), F.C.A. 

  • Tenant & Tenancy Procedure - Minding The Tenants You Keep

Property owners often worry that tenants will be like the camel that asked the Arab for shelter only to nudge him out of his tent by morning.
With various state rent control laws yet to be amended in order to be more equitable for property owners, an extra dose of caution is called for before handing over the keys. In the light of innumerable instances of tenants" sub-letting premises, using the pugree system or going to court to take advantage of long-winded litigation procedures, here are some pointers to make sure that rent income does not insidiously change to cost. Here, the rules of the game partially depend on who the other side is - a company lessor or individual tenant.

Vet the company. No point leasing to a company that is broke. Big names do not automatically imply a model tenant. Sniff around for a good track record of timely payments.

The company"s nominee occupant should be named. If the employee quits during the lease period, the flat should revert promptly to the owner.

Push for a copy of the occupant"s employment contract, which specifies the contract period.

The Company must give a corporate guarantee from its head office ensuring that the flat is handed over at the end of the lease. In case, the guarantee is not available take a letter of comfort from the concerned branch office, which will act as proof that the company has rented the house.

Sound legalese in drawing up the contract is a must.

Specify that subletting is prohibited irrespective of whether it is a company or individual lease.

While big corporates may prefer a three-five year lease, residence owners usually prefer the relative safety of a leave-and-license agreement, which ensures periodic renewal of the terms. The eleven-month agreement is usually popular as these pre-empt the rent control laws, which apply after 12 months. Rent control laws, as said earlier, weigh in favor of tenants.

Specify the notice period for either side.

Property, where rent is over Rs. 3,500 is subject to the Transfer of Property Act (TPA) and not the rent control laws of the various states and metros. The TPA comes under the civil court while the rent laws are heard by the Rent Controller at the district level. If you want to evict errant tenants the TPA is much better as it has a broad scope for eviction unlike the latter which sets out barely 12 causes.

There is a silver lining yet for harried landlords. If passed, Delhi"s pending Rent Control Bill would enable house owners to remove tenants who have stayed for over 10 years without paying market rates. Section 13A2 was introduced in the Bombay Rent Act a couple of years ago which allows the landlord to double the rent if the tenant does not vacate or is ruining the property. Its advocates also say that if the Urban Land Ceiling Regulation Act is abolished, landlords would be on firmer ground. There"s still hope for all property owners!

Courtesy: indiainfoline.com