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How to annul the illegal transfer of membership by CHS

Society transferred the flat and membership in the name of purchaser on the basis of unstamped and unregistered agreement in June 1989. Purchaser has not paid consideration amount therefore, the possession of the flat remains with the seller.  In December 2018, seller came to know that the transfer of membership to the purchaser is not valid and therefor it is null and void. Hence, seller wants to annul the illegal transfer of membership by the society.

How can I convince to the society about their illegal and invalid transfer of membership to the purchaser and request the society to restore back the membership in the name of seller (original member of the society).  Society is located in Mumbai, Maharashtra. Thanks

Question from: Madhya Pradesh

Society cannot transfer the membership to the purchaser in devoid of valid sale deed. Only a valid sale deed conveys the right and title in the property from seller to purchased. Hence, society must demand from the purchaser to produce sale deed. Maharashtra Ownership Flats (Regulation of the promotion of 3 construction, sale, management and transfer) Act, 1963, mandates that only owner of the flat can be the member of society.

In devoid of a valid sale deed purchaser could not become the owner hence, he is not entitled to get membership. Since, you are the real owner of the flat so you still possess the membership of society. You should approach the society to remove the transgression of aforesaid Act. The society will cancel the transfer of membership and restore your status.

File a suit for annulment of the illegal transfer

If society does not take any action on your application then you should file a declaratory suit. You can file that suit under Section 34 of the Specific Performance Act. Society and purchaser are the necessary party in the declaratory suit. You cannot get decree without making them as defendants in the civil suit. When the court declares your right and title in the property then society will cancel the membership of the purchaser. Thus, you can restore your status and annul the the illegal transfer of membership.

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