Is noc from soc.(of plots) acceptable in place of lease deed

Neel Gowariker (Querist) 28 February 2021 This query is : Resolved
I am currently dealing with a seller 'A' of a plot in a Co.op. Hsg. Soc. (of plots), who has purchased from 'B', who has purchased from 'C'. A lease deed has been executed between the society and 'C'. 'C' subsequently sold the plot to 'B' via a Deed of Assignment, who later sold it to 'A' by a Deed of Assignment. However, no lease deed has been signed between the Society and 'B' or Society and 'A'. No surrender of lease deed has also been signed. The society was not made a a consenting party to the Deed of Assignment. However, in each case (deed of assignment), the society has given an NOC, stating that the new purchaser shall be included as a member of the society. The society has also added their names on the share certificate to that effect (with proper stamps & signs). My question is :
1. If I decide to purchase the property in a similar manner, will the society's NOC suffice or will a lease deed be mandatory?
2. If the original seller i.e. 'C', or 'B' is not available for doing any correction deed or subsequent lease deed, what remedy can I avail?

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Quick Summary

This discussion examines the validity of a No Objection Certificate (NOC) from a housing society in lieu of a formal lease deed when purchasing a plot. The scenario involves a chain of assignments where the original lease deed exists between the society and the first owner, but subsequent purchasers have only received NOCs and updated share certificates. The core question is whether these NOCs are legally binding for future transactions or if a lease deed is essential. The advice suggests that an NOC and updated share certificate might confer legal title, but the lack of direct contractual privity between the society and subsequent purchasers could pose issues.

SHIRISH PAWAR, 7738990900 (Expert) 01 March 2021
Hello,

As per query society has already issued share certificate to A so now A is having legal title in the property. So there will not be any problem in future.

Message likes : 1 times

Neel Gowariker (Querist) 01 March 2021
Thank you for your prompt and helpful reply Shirish Pawarji!

Dr J C Vashista (Expert) 07 March 2021
Issuance of share certificate by the lessee (Society) in the name ofB and then in the name of A (both purchasers) is invalid since there is no privity of contract and contractual obligation between them.

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