28 February 2021
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?
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.