Can Associate Mem alone enter into agreement?

Krishna Shenoi

One of our members holds a share certificate no. 027 dated 28th September 1982, which is the date of issue of all share certificates of the original Flat Alottees in our CHSL in Vashi, Navi Mumbai Maharashtra. The CHS was a joint venture of all original members who had leased the plot from CIDCO, erected 2 buildings and allotted flats to each of the original members. Accordingly, flat no B2-3A, was allotted to this member and the share certificate bears his name and the name of his wife, with the name of member appearing first.

Issue:  The member is desirous to lease the flat as they have moved to alternative accommodation to suit their family requirements. The member says he has no objection if the flat is leased by his wife the second named shareholder. However as per norms followed in cooperative societies, as the wife’s name appears second on the Share certificate next to that of the member and therefore she is deemed as Associate member.

Query:  In the aforesaid situation can the wife second named associate member lease the property independent of the member. Does she have any procedural/legal limitation in doing so? What should be the Society Management Committee’s stand in the matter? Should they insist on the member being a party to the leasing of the flat?

 

I C Naik

Leasing a flat is a membership right and is not vested in Associate Member so you have to execute the lease deed yourself. If your wife name appears in the flat purchase agreement she is a co-owner so both are lessor.

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