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2005 Supreme(Bom) 931

IN THE HIGH COURT OF BOMBAY
JETU JACQUES TARU LALVANI
Versus
SOLESTRAP INDUSTRIES PVT. LTD.
Decided on : JULY 20, 2005

Headnote:Registration Act, 1908 - Section 17(1)(a) - Maharashtra Co-operative Societies Act (24 of 1961), Section 41 - Execution of document a declaration of gift by defendant No. 3 transferring his shares in Co- operative Housing Society in favour of his minor grandson and rights incidental thereto - Transfer was of interest in the immovable property requiring registration in terms of Section 17(1)(a) of the Registration Act - In absence of registration there could be no valid transfer of interest in the premises in question. - The defendant No. 3 by executing a document dated 5th August made a declaration of gift transferring five shares held by him in the Co-operative Housing Society in the name of his grandson.

       Held, that the document in question clearly referred to the fact that the defendant No. 3 had gifted his five share absolutely and all the rights incidental thereto. The rights incidental to the shares were nothing but the interest in the immovable property allotted to the member as against those shares. Such document is not exempted from registration as clause (a) of sub- section (1) of Section 17 of the Registration Act is not included in Section 41 of the Maharashtra Co-operative Societies Act. Even if the Society has registered the five shares in the name of the grandson, in law, there is not valid transfer of interest in the premises in question, which was originally held and enjoyed by defendant No. 3, in absence of registration of the purported gift deed. On this finding, it will necessarily follow that de jure the defendant No. 3 continues to have interest in the said property and the transfer of shares will have to be ignored as non est.

       

( 1 ) HEARD Counsel for the parties.

( 2 ) THIS order will dispose of both the Chamber Summonses.

( 3 ) BRIEFLY stated, the Judgment Creditor filed Summary Suit against the defendants, which has been decreed on 18th March, 2002. The said decree has become final and has not been challenged by any of the defendants, In execution of the said decree, the Judgment Creditor persuaded the Executing Court to issue warrant of Attachment in respect of Flat No. 12-C, Atlas Apartment, First Floor, harkness Road, Malabar Hill, Mumbai-400006 on the assertion that the said flat belongs to defendant No. 3. Warrant of Attachment was issued on 15th May, 2002. Consequent thereto, warrant of sale in respect of the said premises was issued on 25th February, 2003. When the proceedings were in progress before the commissioner, the third party/applicant filed objection on 19th May, 2003 to proceed with the warrant of sale on the assertion that the premises in question belong to Master Naman Madhav Patel. The third party/applicant has filed that objection as guardian of minor Naman Madhav Patel. It is stated that the said property is part of property of Atlas Apartments Co-operative Housing Society limited, which is a co-partnership Society. The flat was originally allotted to the grandfather of Naman Madhav Patel, as member of the said Society. The grandfather of Naman Madhav Patel, who is defendant No. 3 was member of the society. He is turn, has executed a declaration of gift on 29th October, 1993 whereunder he has declared his intention to gift five shares held by him as member of the Society in favour of Naman Madhav Patel absolutely and all the rights incidental thereto. It is not is dispute that the declaration of gift is not a registered document. Even so, on the basis of the said declaration, the society has transferred the share certificates in favour of Naman Madhav Patel on 9th April, 1995. On the above basis, it is stated by the third party that the premises in question belong to Naman Madhav Patel and the same cannot be attached or put to sale in execution of decree against the defendant No. 3, although the defendant no. 3 happens to be the grandfather of Naman Madhav Patel. After this objection was taken before the Commissioner, the Judgment Creditor filed Chamber summons No. 399 of 2004 before this Court for the following reliefs :" (a) that it be held that the attachment of the right, title and interest of the respondent has become final and the Commissioner cannot go into the question of the title of the respondent and at the highest, the commissioner can mention the claim of the respondent in the proclamation for sale. (b) that the respondent be directed to give inspection of the documents mentioned in Schedule a annexed hereto or of such of the documents as this Honble Court may deem fit and proper; (c) that the respondent be directed to answer the interrogatories mentioned in the plaintiffs advocates letter dated 5-7-2003, and mentioned in the Schedule B annexed hereto; (d) that the plaintiff be given liberty to bid at the auction sale of the premises viz. flat No. 12-C, Atlas Apartment, Harkeness Road, mumbai 400006; (e) that the cost of Chamber Summons be provided for, (f) such other and further reliefs be granted to the plaintiff as the nature and circumstances of the case may require. "

( 4 ) LATER on, the third party has filed Chamber Summons being Chamber summons No. 731 of 2005 for the following reliefs :" (a) that the delay, if any, in taking out the present Chamber Summons be condoned; (b) that the applicants objection to the Warrant of Attachment and warrant of Sale dated 15-5-2002, and 24-2-2003 respectively, to the said Flat No. 12-C, Atlas Apartment, 1st Floor, Atlas apartment, harkness Road, Malabar Hill, Mumbai - 400 006 be allowed; (c) that the said Flat No. 12-C, Atlas Apartment, 1st Floor, Atlas apartment, Harkness Road, Malabar Hill, Mumbai - 400 006, be released from Attachment and consequently the Warrant of at
















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