HILL PROPERTIES LTD. versus UNION BANK OF INDIA AND OTHERS

HILL PROPERTIES LTD. versus UNION BANK OF INDIA AND OTHERS

The right to occupy, dispose, sell, let, hypothecate, or mortgage a flat purchased by a shareholder in a company or member of a cooperative society is a transferable species of property and cannot be restricted by provisions of Articles of Association, as they do not have statutory force; attachment and sale in execution is valid unless expressly barred by statute.

Parties
Appellant: Hill Properties Ltd.; Respondent No.1: Union Bank of India; Respondent No.2: Respondent No.2; Respondent No.3: Respondent No.3; Respondent No.4: Respondent No.4; Respondent No.5: Respondent No.5; Respondent No.9: Respondent No.9
Jurisdiction
India
Judgment Date
11 September 2013
Procedural Posture
Civil Appeal / Supreme Court Final Appeal, Dismissal
Outcome
Appeal dismissed
Legal Topics
Transferability of Flat Rights, Mortgage by Shareholder, Attachment and Sale in Execution, Articles of Association, Ownership Rights in Company Held Flats
Property Law Banking Law Company Law Transferability of Flat Rights Mortgage by Shareholder Attachment and Sale in Execution Articles of Association Ownership Rights in Company Held Flats

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 7 Party arguments 2
Sign in to unlock

Parties

Hill Properties Ltd.

Appellant

Union Bank of India

Respondent No.1

Respondent No.2

Respondent No.2

Respondent No.3

Respondent No.3

Respondent No.4

Respondent No.4

Respondent No.5

Respondent No.5

Respondent No.9

Respondent No.9

Procedural Posture

Civil Appeal / Supreme Court Final Appeal, Dismissal

Legal Issues

  1. 1 Whether a shareholder in a company owning flats can mortgage the flat without company permission
  2. 2 Whether right to occupy a flat is transferable property subject to attachment and sale
  3. 3 Whether Articles of Association of a company restrict the transferability of flat rights

Ratio Decidendi

The right to occupy, dispose, sell, let, hypothecate, or mortgage a flat purchased by a shareholder in a company or member of a cooperative society is a transferable species of property and cannot be restricted by provisions of Articles of Association, as they do not have statutory force; attachment and sale in execution is valid unless expressly barred by statute.

Court Disposition

Appeal dismissed

Orders

  • Amount, if any, deposited by the appellant to be refunded
  • No order as to costs