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2013 (10) TMI 996 - SC - Companies LawProceedings for Realization of Payment under SARFAESI Act – Held that:- The right, title, interest over a flat conveyed is a species of property, whether that right had been accrued under the provisions of the Articles of Association of a Company or through the bye-laws of a Cooperative Society - The people in this country, especially in urban cities and towns are now accustomed to flat culture, especially due to paucity of land - Multi-storeyed flats are being constructed and sold by Companies registered under the Companies Act as well as the Cooperative Societies registered under the Registration of Cooperative Societies Act, etc. Flats are being purchased by people by either becoming members of the Cooperative Society or shareholders of the Company and the flat owners have an independent right as well as the collective right over the flat complex - Flat owners’ right to dispose of its flat is also well recognized, and one can sell, donate, leave by will or let out or hypothecate his right - These rights are even statutorily recognized by many State Legislatures by enacting Apartment Ownership Acts - Such a legislation exists in the State of Maharashtra as well. Neither the Companies Act nor any other statute make any provision prohibiting the transfer of species of interest to third parties or to avail of loan for the flat owners’ benefit - A legal bar on the saleability or transferability of such a species of interest will create chaos and confusion - The right or interest to occupy any such flat is a species of property and hence has a stamp of transferability and consequently we find no error with the warrant of attachment issued by the DRT on the flat in question - the appellant will certainly have the right of pre-emption, but not at any value lesser than the market value of the suit flat at the time of the sale - Various directions already given by the High Court will stand - The appeal was dismissed and the amount, if any, deposited by the Appellant be refunded to him.
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