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Confirmation on Violation of section 29 of mcs
19-Apr-2023 (In Property Law)
Our is flat in a society My father died in August 2007 , leaving behind me and my 3 sisters as his only legal heirs ( 2 of us were also nominees in the flat) , we had applied to the society in october 2016for transfer of share certifcate in the name of all 4 legal heirs and the society had published in news paper and after due diligence transferred the share certifcate in all 4 names in Jan 2017 Now I want to amicably acquire the property and my 3 sisters will be doing a release deed in my favour Just wanted to confirm is there a violation of section 29 of Mcs as theirs names will be deleted post released deed.
No the procedure opted by you is a legit one, and after the other 3 legal heirs will sing a relinquishment deed in your favour then there is no violation of section 29 of Maharashtra Co-operative Societies Act. As section 29 of the above mentioned act states:
Restrictions on transfer or charge of share or interest. - (1) Subject to the provisions of the last preceding section as to the maximum holding of shares and to any rules made in this behalf, a transfer of, or charge on, the share or interest of a member in the share capital of a society shall be subject to such conditions as may be prescribed.
(2) A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless-
(a) he has held such shareor interest for not less than one year;
(b) the transfer is made to a member of the society or to a person whose application for membership has been accepted by the society, or to a person whose appeal under section 23 of the Act has been allowed by the Registrar; or to a person who is deemed to be a member under sub-section (1A) of-section 23.
(3) Notwithstanding anything contained in sub-sections (1) and (2), where a member is allowed to resign, or is expelled, or ceases to be a member on account of his being disqualified by this Act or by the rules made there under or by the by-laws of the society, the society may acquire the share or interest of such member in the share capital by paying for it at the value determined in the manner prescribed provided that the total payment of share capital of a society in any financial year for such purposes does not exceed ten per cent of the paid-up share capital of the society on the last day of the financial year immediately preceding.
ExplanationI.-The right to forfeit the share or interest of any expelled member in the share capital by virtue of any by-laws of the society, shall not be affected by the aforesaid provision.
Explanation II.-In this section, the expression "financial year" means the year ending on the 31st day, of March or, in the case of any society or class of societies the accounts of which are with the previous sanction of the Registrar balanced on any other day, the year ending on such day.
(4) Where the State Government is a member of a society, the restrictions contained in this section shall not apply to any transfer made by it of its share or interest in the capital of the society; and that Government may, notwithstanding anything in this Act, withdraw from the society its share capital at any time, after giving to the society notice thereof of not less than three months.
Restrictions on transfer or charge of share or interest. - (1) Subject to the provisions of the last preceding section as to the maximum holding of shares and to any rules made in this behalf, a transfer of, or charge on, the share or interest of a member in the share capital of a society shall be subject to such conditions as may be prescribed.
(2) A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless-
(a) he has held such shareor interest for not less than one year;
(b) the transfer is made to a member of the society or to a person whose application for membership has been accepted by the society, or to a person whose appeal under section 23 of the Act has been allowed by the Registrar; or to a person who is deemed to be a member under sub-section (1A) of-section 23.
(3) Notwithstanding anything contained in sub-sections (1) and (2), where a member is allowed to resign, or is expelled, or ceases to be a member on account of his being disqualified by this Act or by the rules made there under or by the by-laws of the society, the society may acquire the share or interest of such member in the share capital by paying for it at the value determined in the manner prescribed provided that the total payment of share capital of a society in any financial year for such purposes does not exceed ten per cent of the paid-up share capital of the society on the last day of the financial year immediately preceding.
ExplanationI.-The right to forfeit the share or interest of any expelled member in the share capital by virtue of any by-laws of the society, shall not be affected by the aforesaid provision.
Explanation II.-In this section, the expression "financial year" means the year ending on the 31st day, of March or, in the case of any society or class of societies the accounts of which are with the previous sanction of the Registrar balanced on any other day, the year ending on such day.
(4) Where the State Government is a member of a society, the restrictions contained in this section shall not apply to any transfer made by it of its share or interest in the capital of the society; and that Government may, notwithstanding anything in this Act, withdraw from the society its share capital at any time, after giving to the society notice thereof of not less than three months.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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