IS NOC REQUIRED FOR SALE OF FLAT ??

Bharat Gala (Querist) 20 October 2008 This query is : Resolved
One of our member was a guarantor and mortgage his Flat to Bank in Mumbai. Due to his ill health he died few years back. His family was not staying with him at the time of death. The said Bank under SERFAESI ACT 2002, took the physical possession with a simple letter to the Society not to transfer the shares of the said Flat. Meanwhile Bank for recovery of their dues sold/auction the flat to the buyer without informing the society nor taking prior NOC from the society.Due to the death of the member there were outstanding maintenance charges to be paid to the society. No information is gvien by the Bank with regards to sale of this Flat. The Purchaser informed the society that he has purchased the Flat from the Bank and he has given on L.L. without taking NOC from the society.
My Question is what is the procedure to take action against Bank for not taking NOC from the society to sale the Flat? Can society take action to recover the outstanding dues of this Flat ? Can Society refuse the purchaser to take him as member? Can society ask the purchaser to make the payment of outstanding dues of the society? Can he give his Flat on L.L. without obtaing NOC from the Society?Can he sale his Flat without transfering to his name directly to third party ? if he does what remeady available to the Society?

Follow Query

Report Abuse

Manish Singh (Expert) 21 October 2008
Firstly, was it a property of the society?
if not, then under srfaesi, the oqner of such debt must be given a notice to pay off the debt and in case the debtor fails to do so, the ARC can take appropiate action like sale of property.

and in another way, if the debtor is not satisfied with the evaluation by the ARC, he can make an appeal to the DRT after paying some charge which iis equivalent to some percentage of the property.