Dinesh Lahoti (CS) 05 August 2011

Section 41 of mcs act, 1960

Dear Sirs,

One of My friend has purchased an flat in 1994 in a Co operative Housing Society. He has paid the stam duty applicable at that time but dint registered the Document as he thought the Registration is not compulsory as give under Section 41 of Maharashtra Co Operative Socities Act, 1960.

Now he wants to sell that flat but his advocate says that as the document is not registered he cannot sell the property till he gets it registered.

My Query is IS registration compulsory or he can take the shelter under Section 41.

Kindly advice.

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2 Replies

AMAR RANU (Legal consultancy) 06 August 2011

You are confused about the interpretation of section 41 of MCS Act,1960.

Exemption given by section 41 of MCS Act,1960 is applicable to Share Certificate,Debentures and Endorsement upon or transfer of any debentures only.

All other documents are required to be registered.

Dinesh Lahoti (CS) 06 August 2011

Dear Sir,

Thanks for the reply.

I agree with you but why would one transfer the shares or debentures of the Society and not the Ownership of Flats. Also if the shares are transfered in others name ..then in that case who would be treated as owner of flat ...? Also can the shares of the socity are freely transferable like ordinary equity shares?