One member just after registration of society by builder sold flat to new member and now not contactable. The sale was known to builder and collected the amount from new member. I did follow-up with new member and told to pay him transfer fee, charges and entrance fee. Builder returned (transfer) money collected from new member to society.
1) I want to know what are the transfer documents required by old and new member to submit society so that society can approve and admit him as member.
2) If old member is not contactable then how to handle if any signatures are required from him in connection with transfer.
3) Till the time on which name we should send bill to new member? Old member or new member name?
I C Naik
Chandrashekhar Dudharkar is facing a tough situation of admitting a person to membership of his CHS. This person has bought a flat from an original buyer on a date that follows the date of registration of the society but before the Committee was handed over management of the society by then developer. Chandrashekhar wants to know what are the transfer documents required by old and new member to submit society so that society can approve and admit him as member. It is pertinent to note that the original member’s whereabouts are not known. Surprisingly he does not seem to be concerned that the eligibility to membership of the proposed transferee itself was in question in terms of provision of the MCS Act 1960.
Let us understand why?
The membership of a CHS is not being taken as seriously as it deserves to be. Flat buyers are unable to comprehend that all of them jointly are the owners of a precious property with equal rights and responsibility to manage it: As per Section 2 (19) of the MCS Act 1960 and the Bye-Law No 3(xxiv).
“Member” means a person joining in an application for the Registration of a Cooperative Housing Society which is subsequently registered, or a person duly admitted to Membership of a Society after Registration and who holds the right, title and interest in the property individually or jointly;
(i) The very first group members are those who joined in the application for registration of the housing society.
(ii) The second group is those who bought the flat but did not sign the application: are admitted to membership (Rule 59(2)(ii), in the 1st general body meeting required to be convened by the developer within 3 months of registration (U/S 73(1A).
In any case the first purchaser is a member of the society and transfer of his membership requires to be done in compliance of applicable provisions of the MCS Act 1960 , the MCR 1961 and registered bye-laws of the society which are in force.
The Procedure and documents required are as under:
For transfer of the membership of the flat purchaser in this case) he is required to comply with the requirements laid down under Bye-Law No 38 read with Rule 19/24
(i) Rule 19: No person shall be admitted as a member of a society unless,—
he has applied in writing in the form laid down by the society or in the form specified by the Registrar, if any, for membership;
(ii) Rule 24. Procedure for transfer of shares:- (1) No transfer of shares shall be effective unless,—
(a) it is made in accordance with the provisions of the by-laws;
(b) a clear fifteen days’ notice in writing is given to the society indicating therein the name of the proposed transferee, his consent, his application for membership, where necessary, and the value proposed to be paid by the transferee;
(iii) Bye-Law No 38 (a-c):
(a) The Member intending to transfer the flat has to 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.
(b) 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-fascia eligible to transfer his shares and interest in the capital/property of the Society, in view of the provisions of Section 29(2)(a) of the Act.
(c) In the event of ineligibility (in view of the provisions of section 29(2)(a) & (b) of the act) 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 8 days of the decision of the Committee.
As the flat purchaser is not traceable and the second buyer cannot be admitted to membership the maintenance bills are to be sent to the builder as if the flat is unsold.
Let the second buyer try his luck with the Registrar of cooperative societies by submitting his application to the Registrar under Section 23 of the MCS Act 1960.