Indemnity bond
kavkaz
(Querist) 22 November 2015
This query is : Resolved
Hello,
I own 2 flats in a Mumbai based CHS. I myself am the sole owner to the first flat &
myself and my son are joint owners to the second flat.
Please note here that the stamp duty was not paid by the previous owner of the first flat and till date it is still outstanding.
Presently, I am in the middle of the transfer process for the second flat. In this regards, I have asked the CHS to transfer the share certificate for the second flat in my name (with my son as the co-owner to the flat).
Recently, the CHS has started with the deemed conveyance acquisition process and as part of the process, the CHS has asked me to submit an Indemnity Bond stating that "I accept and will pay the stamp duty for the first flat on behalf of the previous owner of the first flat" and then only after submission of the said Indemnity Bond they will transfer the Share Certificate for the second flat in my name.
My query: Is this the legal way in part of the CHS to forcibly ask me to submit such an Indemnity Bond? Has the CHS got the right to withhold the transfer of my second flat and force me to submit such an indemnity bond? Eventually, the 2 flats are separate entities.
Thanks in advance :)
Kumar Doab
(Expert) 22 November 2015
Repeated Query.
Consult an able local lawyer with copies of all docs on record.
V R SHROFF
(Expert) 23 November 2015
WHAT YOU LOOSE IF YOU SUBMIT INDEMNITY BOND IF IT HELP YOUR SOCIETY??
P. Venu
(Expert) 24 November 2015
Indemnity bonds are mere placebos. They are seldom enforced and could be enforced only through a decree from a court of law.
kavkaz
(Querist) 24 November 2015
Is demanding such an Indemnity Bond legal? As deciding the way to recover the pending Stamp Duty is government's job and NOT the job of the society.
T. Kalaiselvan, Advocate
(Expert) 30 November 2015
You are not liable to pay the stamp duty on behalf of your vendor, but you are required to pay the stamp duty for your purchase.
