Can I purchase a plot of land in a cooperative society with a sale deed that mentions that it’s obligatory to acquire no objection certificates? Will the co-operative society create any downside if I purchase with out the mentioned kind?
Please notice, I don’t want to develop into the member of the society after the acquisition.
—Name withheld on request
Any restriction imposed underneath an absolute sale deed which interferes in exercising possession rights by purchaser, just isn’t legitimate. Section 10 of the Transfer of Property Act, 1882 supplies as follows:
‘Condition restraining alienation. — Where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void…’
In the moment case, the requirement of taking no objection certificates from the cooperative society for switch of the topic plot, will tantamount to an absolute restriction on sale because the cooperative society might refuse permission with none foundation. Therefore, the mentioned requirement just isn’t legitimate and needn’t be complied with.
If there are any dues payable to the cooperative society by the allottee i.e., the purchaser of the property from the mentioned society, the mentioned society could have a lien on the property to the extent of the dues payable to it by the purchaser of the mentioned property.
In offering this opinion, we’ve got assumed that:
(i) the sale by the cooperative society to the current proprietor is by the use of execution of an absolute sale deed, registered with the workplace of the jurisdictional sub-registrar; and (ii) the following purchaser of the plot needn’t develop into a member of the mentioned cooperative society.
However, if the sale of plot requires switch of membership of the society to the brand new purchaser, the stipulation to acquire no-objection from the society, could possibly be a legitimate requirement. Further analysis of info will likely be needed in such context.
Srinivas BR is accomplice at DSK Legal.
Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.