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Membership of the Housing Society for Auction Purchaser

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Judgment dated 15.10.2025 of the High Court of Bombay in Writ Petition No.11251 of 2024 of M/s H.V. Infrastructure Pvt Ltd and another   Vs.  State of Maharashtra and another

 

Membership of the Society in respect of flats purchased in auction

Flat Nos.B38 and B39 belonging to Mehtaji and mortgaged with Union Bank of India for the loan were sold in auction.  The petitioners were the highest bidders for the both the flats, they paid the entire amount and physical possession was given to them.

Neither the borrower nor the respondent society challenged the said sale proceedings or confirmation of sale.  Two applications of office bearers of the society were also dismissed.

Although the sale was confirmed in 2007 the sale Certificate was subsequently stamped and sealed by the Recovery Officer in 2017 only to regularise the stamp duty and penalty payments.

The primary reason for refusal of society membership to the petitioners was that the sale certificate was not registered and it was issued after ten years.

Section 17(3)(xii) of the Registration Act 1908, provides that the sale certificate of a Court or Revenue Officer for the property sold in public auction is exempted from compulsory registration.

Thus, the unregistered sale certificate once issued under the seal of the Recovery Officer and duly stamped conveys title to the purchaser by operation of law.

The objection of the society that the auction purchasers failed to produce original share certificate is inconsequential since the sale being a public auction supersedes the previous ownership and creates a fresh right in favour of the auction purchaser.

The obligation of the society is limited to recognising the lawful purchaser and granting membership as per law.

It is well settled that once a property is sold in public auction through a Court or Recovery Officer and sale is confirmed, the o ownership passes to the purchaser and no subsequent procedural delay such as non-registration or non-delivery of documents can divest the purchaser of title.

Auction Sale Confers Title ; Bombay HC Upholds Housing Membership Rights of Auction Purchasers

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