Distribution OF SITES BY BDA

Distribution OF SITES BY BDA

                                     

                                              

Bangalore Development Authority has ended up hyperactive and has been circulating the destinations in expansive numbers. Normally the general population are excited to know the procedure embraced by BDA in designating the destinations. This review gives the wide blueprints of the method took after by BDA.

Bangalore Development Authority (assignment of destinations) Rules 1984 administer the distribution of locales. These tenets are occasionally altered. At whatever point power frames an expansion or design; offers the destinations in such augmentation format to the overall population, wide exposure will be given saying the area, number, region, and last date for accommodation of utilizations. The points of interest are additionally distributed is at the very least three daily papers of Kannada and English, which are distributed from Bangalore having wide dissemination.

Power is engaged to separate, 40% of the locales to financially weaker segment at half of the estimation of the destinations; out of this the 15% of the locales are saved to timetable standings, 3% to calendar tribe and 2% to the calendar tribes and remaining locales to monetarily weaker segments. BDA might likewise apportion locales on lease premise to instructive, religious, altruistic organizations, which are enrolled under social orders enlistment act, or Trust for open purposes. Be that as it may, such distribution ought not be more than 5% of the aggregate site territory in every format. Further locales held for city conveniences, open parks and play areas can't be apportioned in such way.

Enrollment:

Just the persons who have enrolled their names on installment of endorsed enlistment charge are qualified to apply for designation of locales. The enlistment expense at present is as per the following: -

Range of the site in sq. mtrs Registration charge

a)350 or more ... Rs. 2,000/ -

b)225 above however underneath 350 Rs. 500/ -

c)Below 225 Rs. 100/ -

On the off chance that the candidate pulls back the enlistment the enrollment expense paid less 10% will be discounted to the candidate. Enrollment once done is substantial for any ensuing endeavors. On the off chance that the candidate passes on after enlistment, the mate, of the perished candidate is qualified for apply for apportioning. In the event that the life partner is not alive the reliant kids, will be considered to have enrolled range have right to apply for apportioning. The enlisted candidate or his lawful beneficiaries need to apply for portion of site in endorsed (structure II).

The candidate ought to additionally transmit 12.50% of the told expense of the site alongside application as beginning store. The starting store payable in the event of Schedule Castes, Schedule Tribes, range in reverse tribes is 5%.The effectively filled application alongside introductory store ought to achieve the power before the time altered for receipt of such application. The BDA notice for the most part illuminates the method of paying the starting stores, by transmitting to specific banks. The finished application structures might likewise be given over to the predeterminedbranches.

In the event that the application is pending with BDA for portion and the power welcomes applications for further locales, the candidate ought to again apply in structure II (A), yet there is no compelling reason to pay starting store.

Qualified PERSONS:

Just a man who is major, and an inhabitant of Karnataka for at the very least 15 years before the date of enrollment, and who or whose relatives does not possess a site or house on Bangalore, or not allocated any site or house by BDA or Housing Co-agent Societies is qualified to apply.

The prerequisite of 15 years home in Karnataka is liable to unwinding in the event of persons who are occupants of Karnataka, yet being utilized in military serving outside Karnataka; have gone out of the state for job, advanced education, yet have bonafide expectation to settle in Bangalore metropolitan range. BDA might likewise waive this condition with the former consent of the legislature, if there should be an occurrence of persons who have accomplished exceptional execution in field of craftsmanship, science or in some other field.

The portion of destinations to distinctive sections of society on rate

premise is as per the following: -

a) Backward tribes - 2%

b) Scheduled Tribes - 3%

c) Scheduled Castes - 13%

d) Members of military Ex-servicemen, and individuals from the groups of diminished servicemen - 10%

e)State government representatives - 10%

f ) Employees of focal government open area endeavors, statutory bodies possessed or controlled by state or focal government - 8%

g) Physical impeded - 2%

h) General open - half Persons who have remarkable accomplishment in this field personality Arts, Science, Sports - 2%

On the off chance that adequate number of candidates are not accessible in class A the equalization destinations will be exchanged to classification B, then to class C, and after that to class H (overall population) moreover without adequate number of persons in class E, F, G, H, the parity locales will be exchanged to class H (overall population). The word exceptional accomplishments is characterized as accomplishment at state, national, worldwide level, where an honor or an award is preserted by the powers appropriately perceived by state or focal government.

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Advocate S. Sevakumar

GIFTING OF PROPERTIES LEGALLY

GIFTING OF PROPERTIES LEGALLY

                              

Gifting of Properties to the beloved ones on completely different occasions may be a means of expression affectionateness} and affection. Gifts are created even for alternative functions together with philanthropic, spiritual or charitable functions. Once such gifts are created and accepted, in line with Law, there's transfer of property in favor of the Donees from the Donors.Transfer of property may be each movable and immovable. Whereas this text, deals with gifts of immovable property.

‘Gift’, is outlined in section 122 of the Transfer of Property Act, 1882, as a transfer of bound existing movable or immoveable property created voluntarily and inconsiderately, by one person, known as the Donor, to another, known as the beneficiary and accepted by or on behalf of the beneficiary. Section 123 of the Act stipulates the procedure on however transfers of immovable properties are affected.

Characteristics:

For a legitimate Gift, it should have the subsequent essential characteristics;

(1) Donor should be a competent person,

(2) It should be created voluntarily,

(3) It ought to be inconsiderately,

(4) There should be a suggestion by the Donor,

(5) There should be an acceptance by the beneficiary or on his behalf,

(6) Acceptance should be done throughout the life time of the Donor and also the donee; and

(7) Should be an existing property and not a future one.

A gift is basically a gratuitous transfer. In alternative words, non-acceptance of financial thought reciprocally from the beneficiary by the Donor is that the hallmark of a present. Even an enterprise by the beneficiary to pay a token total would equal to thought and also the group action wouldn't qualify to be treated as a present. a present can't be created with an intention of inserting the beneficiary underneath a legal obligation. Section 123 of the Transfer of Property Act, postulates that an immoveable property needs registration and for need of registration oral gift isn't admissible visible of Section seventeen of the Registration Act. Therefore, gift of immoveable property may be established solely through a registered instrument. The Donor should sign a deed of Gift and at least 2 witnesses should attest his signature. A deed of gift wants the beneficiary’s acceptance and thus the overall follow is that donee, is created a celebration to the deed and additionally to be made an execution party. If the beneficiary doesn't settle for the gift, the mere reality of registration won't create the gift legal. a present is complete upon the execution of the deed of gift and its delivery to the beneficiary, that constitutes his acceptance of the gift.

Contents:

A gift deed should contain a quick narration on however the Donor got possession of the property; whether or not it's his self-acquired property or his share of ancestral property, whether or not the property is involved or not and if involved, however he can indemnify the beneficiary against any financial loss, whether or not the Donor is competent to cope with the property and whether or not the beneficiary is competent to simply accept the gift.

If the gift is to a charitable trust or a charitable establishment, it's continuously well to follow the procedure adopted for touching the sale of an immoveable property by scrutinising the title on its possession, marketability and encumbrance. It should be in writing.

Intention of maker:

The beneficiary obtains his interest within the property straight off on execution of the gift deed by the Donor. Hence, albeit there exists a recital within the gift deed that the gift is reversible, in impact it's irrevocable. It’s the intention of the maker and not the word of the document, which needs thought to search out on whether or not a document may be a gift deed or not and also the document should be scan as an entire. Further, Donor will gift to the donee solely an existing property and not the long run property. The Donor should make sure that, the donee is competent enough to simply accept the gift. Solely a significant will create a present and not a minor unless the guardian of the minor is sceptred to try to therefore. A minor will settle for a present, if he's capable of understanding the group action. Otherwise, he will settle for it through his Guardian. Indian Registration Act needs that each one non-testamentary gifts if reduced into writing need registration with an exception as provided in sec.129 of the Transfer of Property (T.P.) Act addressing the gifts of Mohammedans.

Acceptance and delivery:

Acceptance of the gift should run by the donee or on his behalf throughout the time period of the Donor and if the donee dies before acceptance, the gift becomes void. The beneficiary isn't absolute to settle for the gift within the same kind, within which it's offered to him. Mere dedication of some land for the aim of a temple won't qualify to be thought-about as a present within the absence of acceptance by the beneficiary. Post-acceptance by the beneficiary of the gift is also impermissible. a present isn't valid unless it's amid delivery of possession of the topic of the gift from the Donor to the beneficiary. But, wherever from the character of the case physical possession can't be delivered the Donor should do all the Acts therefore on entitle the beneficiary to get possession.

Undue influence:

While affecting any gift, the Donor shouldn't be harassed or underneath undue influence of the beneficiary and also the gift ought to emanate from a power and at the discretion of the Donor. Suppose, X, the Donor, has been taken care of by Y, the beneficiary throughout the last section of his life and thereby X develops love and heart towards Y resulting in execution of the deed of gift. This circumstance can't be thought-about to be a circumstance of undue influence. If a present isn't spontaneous and freelance, there is also a case of undue influence against the Donor.

Separate Property of Co-Parcener:

The Karta of a Hindu family has the facility to create a present among affordable limits of the ancestral immoveable property for pious functions. A Co-Parcener, throwing his separate property into ordinary shares makes no gift. it's been command by the Supreme Court within the Mallesappa Bandappa Desai vs.Desai Mallappa [1961 (3) SCR 779] case; that the philosophical system of throwing into ordinary shares inevitably postulates, that the Owner of a separate property may be a Co-Parcener, who has an interest within the Co-Parcenary property and needs to mix his separate property with the Co-Parcenary property. The Act by that the Co-Parcener throws his separate property to the ordinary shares may be a Unilateral Act. By his individual volition he renounces his individual rights therein property and treats it as a property of the family. Once a Co-Parcener throws his separate property into the ordinary shares, he makes no gift underneath the 

Transfer of Property Act.

A minor will settle for a present and also the minority by itself isn't a bar to his acceptance of the gift. a present may be created to a category of persons provided the members there of, are existing at the time of gift. Wherever a present is created to 2 Donees and also the gift to 1 of them is invalid, the opposite would take the total estate. Acceptance of gift is also either categorical or tacit. Even silence on the part of the beneficiary is adequate to infer that the beneficiary accepted the gift.

Differs from Sale:

A gift is distinguishable from a Grant, Sale and Will.

In the case of grant, neither acceptance nor delivery of possession of the property is important. At present is voluntary and inconsiderately whereas a grant could lack each. At present conveys the corpus whereas a grant could convey solely the proper of enjoyment of property while not transfer any interest within the corpus. At present should be unconditional; however a grant needn't be therefore. Property nonheritable by gift is transferable, however one obtained by grant isn't essentially therefore and also the grant depends upon its subject, purpose and terms. A grant is also reversible at the desire of the granter, whereas a present is irrevocable at the desire of the Donor.

In the case of sale, thought in cash or money’s value may be a should whereas a present may be a voluntary transfer of property with none thought. In sale of property, quality of thought would render the total group action void since thought is a necessary component of sale. But, within the case of a present, as thought is of no consequence, quality of thought wouldn't invalidate the gift.

The criteria to be adopted for ascertaining whether or not an instrument may be a can or not is by examining whether or not the disposition takes impact throughout the life time of the performing artist of the instrument or whether or not it takes place once his ending and whether or not it's reversible or not since within the case of gift, the transfer of property takes place straight off upon execution and delivery of the gift deed. within the case of a can, the Donor should reserve to himself the facility of revocation, the desire should not be expressed and supposed to work in praesenti however solely in future on the death of the Donor and regard should be had to the intention of the Donor and also the language employed by him.

When invalid:

A gift is taken into account as invalid; (a) if the property talented isn't in presenti, (b) if one amongst the Donees refuses to simply accept his share (in respect of that Donee), once the gift is created conjointly to the Donees, (c) if it's a reversible gift, (d) if it's an prohibited transfer and (e) if it's transferred by an unskilled person.

Stamp Duty:

If the Gift is given to the relations, stamp tax is applicable as per state legislative act. The relations in respect to the Donor for the same purpose means; husband, wife, son, daughter, relative-in-law, grand kids etc.If it's aside from the relations, that's any trust, charitable establishments etc., stamp tax is collectable as a Conveyance as per the value.

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Advocate S. Selvakumar

GUIDES TO PROPERTY BUYING

GUIDES TO PROPERTY BUYING

                                      

                             

Purchase of Property:

It deals with a number of most significant topics on purchase of properties like choice of location, choice of builders, general precautions, revenue sites, gramathana building license, comprehensive development arrange, women’s finance, mortgage of stabile property.  The appendix has been particularly enclosed giving the model drafts of sale agreement, sale deed, unleash deed, gift – deed, general power of attorney, public notices and deed of partition.  The topics cowl, modes of effort stabile property, holding of property by company, partnershipfirm, Trust and H.U.F. are value inquiring, which is able to enlighten the general public and different professionals. The subject on purchase and transfer by NRIs can change the NRIs to own higher data of the restriction and acquisition of the stabile property.

Purchase of flats:

This is an entire associated thoroughgoing text for purchase of flats that deals with purchase of flats/apartment that is altogether totally different group action from that of emptor of a freelance house that is additionally ruled by the multiple laws, governing stabile property transactions, these aspects are dealt in an exceedingly comprehensive and straightforward manner.

In addition, it deals with the city housing situation, section of location, general precautions, points to recollect at the time of purchase of flats/apartments, scrutiny of deed of conveyance, choice of builder, agreement to sell, occupancy certificate, mortgage of stabile property, housing co-operative society, effort property by share allotment, taxation provisions purchasable and buy, the Karnataka possession flats Acts 1972.

The Karnataka apartment ownership Act, 1972 are number of the necessary topics that are dealt to present associate overall plan to the purchasers of the flats. The annexure at the top of the chapters provides the readers an insight of the terms and conditions that are ordinarily entered by the pareties.Model Agreement to sell and Sale Deed that type the fundamental documents for the acquisition of flats.

Market Value of Land:

This contains steerage worth of the property in city as printed within the gazette.  The special feature of this book is associate addition chapter on revenue enhancement, registration charges and different helpful data is enclosed.

This deals with the newest notification of the calculable value of the stabile properties coming back underneath the jurisdiction of the assorted sub-registry offices as nominative and printed by the govt. of Karnataka. This is not solely to the parities handling stabile property, the knowledge with relevancy purchase of stamps and registration charges however conjointly the final public, advocates, developers, promoters, property consultants, document writers and land agents still.

The copies of the gazette notification don't seem to be simply accessible to each one.  The book includes latest changes created by the govt. and a modern text of state notification.

The revised revenue enhancement due on a number of the instruments as on 1/4/2003 is provided in an exceedingly shell shows the instrument and article showing aspect by aspect.

Legal queries and Answers onProperty Matters:

This has tried to hide the big selection of issues regarding to property group action queries by the voters within the kind of question and answer.  This has 210 queries with answers on the subsequent topics particularly, Agreement to Sell, Agricultural land, housing and Flats, Building Bye laws, Comprehensive Development Plan(CDP), encumbrance, Mortgage, Lease etc., General queries, the book conjointly deals with queries raised touching on Housing Finance, Inheritance.

The one necessary issue to stay in mind is that everyone these four books are written in straightforward and style devoid of legal jargon.

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Advocate S.Selvakumar

CREDAI: Realty Bill will only increase Corruption

CREDAI: Realty Bill will only increase Corruption

                           

According to theConfederation of Real Estate Developer’s Associations of India (CREDAI), the proposed real estate regulatory bill would only increase corruption.CREDAI represents 8,800 Developers through 20 States and 114 City chapters across the Country.The bill is expected to come up in the current session of Parliament.

According to the National President of CREDAI, the sweeping powers sought to be vested with the Regulatory Authority would only increase corruption manifold, instead of curbing it.This may serve political interests of the powers that be, but does not solve the Home Buyer’s issue of making housing affordable.

For instance, if the Authorityseeks to grant registrations manually and even empowers the regulator to reject them.It also gives discriminatory powers to the Authority to cancel registrations. This is dangerous and will lead to greasing the palms and all such cost is bound to be passed onto the End-Buyer.

The best way is to strengthen the Consumer Redressal Forum by adding a chapter on real estate and empowering it.CREDAI wants a true regulator, which will govern all the stakeholders and have powers to ensure that no delays occur due to other stakeholders like the Planning Authority.There are provisions to penalise Developers under CrPc (code of criminal procedure), though economic offences do not invite such draconian Legal Action.

The bill also provides for depositing 70 percent of the sale price in a Bank account by Developers. Blocking such a large amount will hamper their liquidity and business expansion.The real estate and construction industry is the Country’s largest Employer after agriculture. The regulatory provisions will create a fear of psychosishttp://propertyadvocates.in/tpact.pdf and also discourage Entrepreneurs from entering the business.

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Advocate S.Selvakumar

CONSUMER COURT CAN HELP IN REAL ESTATE ISSUES

CONSUMERCOURT CAN HELP IN REAL ESTATE ISSUES

                             

                              

When a New Delhi based homebuyer approached a consumercourt to file a case against the developer who did not deliver the project on the promised date, she did not know that consumer courts to admit cases involving possession of property or any kind of delay in construction. These cases are taken up by the civil courts. In the above mentioned example, the customer has already paid 95% of the total cost of the property, but is still to get possession. The matter is sub judice.

Like our friend from New Delhi, many homebuyers do not know that such cases do not come under the purview of consumer courts. However, delay in construction is not the only problem that homebuyers face. There are other cases such as deficiency in services at various points even after possession of flat, where you can seek help of consumer courts. Here's a list of some such problems in which you can take the developer to the consumercourt.

Construction defects and maintenance:

There could be variations from what you were promised, in the final design of the apartment. If you do not get the same design or outlay as mentioned in the advertisements or shown in the sample flat, it is a deficiency in services on the developer's part.

Even poor construction quality can be the basis of a consumer complaint where you can drag the developer to a consumer court. "For the first year after possession, the builder is liable to take care of damages such as leaks in water pipes or cracks in the walls. If he refuses to do so, you can lodge a complaint with the consumer court." Says Rajesh Goyal, Managing Director, RG Group, a New Delhi-based real estate firm.

Also, it is the developer's responsibility to maintain parks, parking spaces, clubs and other such amenities for the first three-five years. However, in case he is not doing the same, you can ask for a refund of the amount that. you have already paid at the time of buying the property. If he acts stubborn, you can drag the d v lover to the consumer court.

Escalation Clause:

The price of the flat can go up, though marginally, during the course of construction. This can happen any time during the construction. If you look at the agreement paper signed with the developer, you will find a rise-and-fall or alteration clause which allows the developer to take a unilateral decision on price change during the course of construction. Though price changes depend on various factors such as demand and supply in the housing sector, home loan rates or prices of raw materials, the clause doesn't mention the range of price rise. "There is nothing much that you can do about the change if you have signed the builder-buyer agreement." Says Snehdeep Agarwal, Director, Bhartiya Group, a real estate firm with projects in Bangalore. However, if the developer is not able to justify the reason for a hike in price, you can seek help.

Misuse of common areas:

The developer cannot sell the open spaces within the premise for setting shops and offices. Selling of common spaces of the complex may take away the extra space that you have paid for. It has been observed in the past that developers sell common spaces without the permission of the resident’s welfare association. Even setting up telecommunication towers on the roof of building need permission of the residents in writing.

Delay Compensation:

Although the property possession cases are taken up by civil courts, you can approach the consumer court if the developer fails to pay you the delay compensation charges in such cases. Most builder- buyer agreements have a delay- compensation clause. According to this clause, an amount at the rate of, say, Rs.5-7 per sq.ft has to be paid to the homebuyer in case the property is not delivered on scheduled date.

Case Hearing:

The hearing in consumer courts is taken on a fast-track basis. You may get a judgement in a single day if all the necessary documents are in place. If the court finds the developer guilty, it orders a compensation amount that he needs to pay to you. The Consumer Protection Act, 1986, provides a three-tier system of redressal agency - first, at the district level known as the district forum; second, at the state level known as the state commission; and third, at the national level known as the national commission. These forums deal in matters of real estate as well as consumer goods.

"A consumer can file complaint in the district forum of the district concerned where the value of goods, services and compensations, if any, up to Rs.20lakh. He can approach the state commission for cases involving sums of money between Rs.20lakh and Rs.1crore, and the national commission for more than Rs.1crore." Says Sunder Khatri, a Delhi- based lawyer practicing in the Supreme Court.

There is provision for appeals against orders of a particular forum by the aggrieved party before the next higher forum / commission and even from the findings of the national commission before the Supreme Court.

How to go about it:

Approaching a consumer court is fairly simple. In fact you do not even need a lawyer for filing a case in a consumer court. You can write your problems in a piece of paper and send it to the court through post. In your note, you need to mention the problem and the name of the person who is responsible for the deficiency in service. Says Khatri, "While, you should address the particular court and mention the subject is one line at the start of your application. Following this you should mention all the facts of your complaints under section 12 of the Consumer Protection Act."

Most importantly, it is a must to mention the compensation amount in terms of money that you want as refund from the developer. However, you need to justify the amount with proper documents, addsKhatri. If you name the developer, the court will summon the same. The developer may appoint a representative to appear in the court on his behalf. If your case is an old one, you can ask for an increased amount of compensation based on the fact that property rates have also increased over the period.

However, before you approach the consumer courts, discuss the issue with the developer. In most cases, developers would want to avoid legal battle and would want to solve the matter outside the court.

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Advocate S. Selvakumar 

CONFIRMATION DEED AND CANCELLATION DEED

CONFIRMATION DEED AND CANCELLATION DEED                     

                             

It is very common that many a times the main documents of sale,mortgage,lease are drafted by inexperienced, unqualified people, as result of which defects creep into the documents. This necessitates the requirements of supplementary documents to remedy the mistakes. Deeds of confirmation, rectification and cancellation are some of the important supplemental deeds. We have already dealt with rectification deed. This write up deals with confirmation deed and cancellation deed.

There are two types of confirmation deeds,one of the types is,where a person confirms and assents to the document of conveyance executed by another person. This becomes necessary, when a person is not made a party to the main document of conveyance either by oversight or by ignorance or by some other reasons. Another type is very important.

Here the party to a document has made some mistake in signing the main document or has failed to admit the execution before the sub-registrar within the prescribed time, and consequently the sub-registrar has refused to register the document as far as the said party is concerned or in some other respect. It is very common though the parties executes the documents, but fails to turn up at sub-registrars office to admitexecution, and the registering authority, refuses to register the document. In order to remedy this defect, a deed of confirmation has to be executed from the concerned party, wherein he confirms the execution of principal deed and further adds that the principal deed is valid and binding on him. He also confirms that he has no right, interest, title to the property transferred which belongs to the purchaser/transferee.

As a precautionary measure a copy of principal deed should be annexed to the deed of confirmation and such copy should also be signed by the party executing the confirmation deed. However, whether such a documents cures the defects of the main documents is debatable, but, such documents would act as promissory estoppel against the party. This would avoid execution of fresh documents, payment of tamp duty and registration charges. The word confirmation in strict parlance mean approbation or assent to the estate already created, by which confirming party further strengthens and gives legal validity to such estate so far at it is his powers.

The confirmation may be given in variety of ways

 (1) by acquiescence

 (2) by limitation

 (3) by deeds.

Confirmations of acquiescence and by limitations are the outcome of operation of law. The Indian registration recognizes confirmation deeds Sec. 17(1) provides any deed confirming any interest in immoveable property needs to be registered. The confirmation deed attracts stamp duty. If the main documents are registered or to be registered the corresponding confirmation deed also requires registration.

Deed of cancellation 

Section 13 of specific relief Act 1963, deals with the cancellation deeds. There may be certain written documents which by their nature or by operation of law or by some other reasons are void, violable. Such documents if left as they are and outstanding may harm the interest, rignt, titles privileges of some party.

Such person may institute a suit, praying for cancellation of such written document, and the court in its discretion if thinks it proper may order for Cancellation of such written document. 

There may be documents of contract which are void as they are against Law Public Policy or violable if they are vitiated by fraud coercion or other similar grounds. The parties to the document may also cancel such documents by mutual consent without referring to the court. An agreement for sale, lease, mortgage, licence, partition, may be cancelled by the parties which consent of all parties.

But at times, the matter of cancellation of document may not be so simple as same parties may want to take undue advantage, or very mature of document may not make it simple task. A deed of conveyance which is duly executed and registered cannot be cancelled by mere deed of cancellation. The proper course would be to execute a reconveyance deed and get it duly registered. But if the original deed of conveyance is executed on account of fraud, coercions or incase of any disagreement among the parties, the chances of mutual consent to cancel agreement are very remote. In such cases, the affected party has sought the intervention of the court by filing suit as per the provisions of section 13 of specific relief Act.

If any of the documents are unregistered, it may be cancelled by consent of all the parties by scoring off or by endorsing it about cancellation. But in both cases, all the parties should sign the document for having cancelled.

Cancellation deed attracts the stamp duty as per section 17 ofIndian stamp Act, that is stamp duty is payable only if it is attested by witness.A cancellation deed which is not attested attracts stamp duty as per agreement. If the main deed needs to be registered. Cancellation deed also needs to be registered.

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Advocate S. Selvakumar

COMPANY LAW

COMPANY LAW

                   

The word 'Company' is an amalgamation of the Latin word 'Com' meaning "with or together" and 'Pains' meaning "bread". Originally, it referred to a group of persons who took their meals together. A company is nothing but a group of persons who have come together or who have contributed money for some common person and who have incorporated themselves into a distinct legal entity in the form of a company for that purpose. Company law (or the law of business associations) is the field of law concerning companies and other business organizations. This includes corporations, partnerships and other associations which usually carry on some form of economic or charitable activity. The most prominent kind of company, usually referred to as a "corporation", is a "juristic person", i.e. it has separate legal personality, and those who invest money into the business have limited liability for any losses the company makes, governed by corporate law. The largest companies are usually publicly listed on stock exchanges around the world. Even single individuals, also known as sole traders may incorporate themselves and limit their liability in order to carry on a business. All different forms of companies depend on the particular law of the particular country in which they reside.

How a Company is formed in India

Please note that the process of formation of a company in India has three stages viz. Promotion stage, Incorporation Stage and Commencement of Business stage.

Promotion Stage: The formation of a company begins with an idea. The manner in which the idea will work or can be implemented is termed as promotion of a company. The person or persons who are involved in promotion are called "Promoter(s)". The promoters are well in advance needed to decide about the product to be produced, the size of the company, the capital involved in the project, the sources of the capital and whether it shall be a Private Company or a Public Company etc before the formation of the company. In case of a Private Company, at least 2 persons or in case of a Public Company at least 7 persons shall subscribe their names to a Memorandum of Association (MoA) and they shall also comply with the other formalities in respect of the registration of the company under the Indian Companies Act, 2013. After the above process they approach the RoC with the MoA. Registrar of Companies (ROCs) is appointed under Section 609 of the Companies Act, covering various States and Union Territories. RoC are vested with the primary duty of registering companies floated in the respective States and the Union Territories and ensuring that such companies comply with the statutory requirements under the Act. The offices function as registry of records relating to the companies registered with them. In beginning it is always advisable that the promoters should check with the registrar the name of their new company because, if already a company with such name is existing, it shall not be allowed by the Registrar, because two companies with the similar name cannot be registered. If no other company is registered with that name, an application for the registration of the company should be presented to the Registrar of the State.

The application should contain thefollowing components: 

Memorandum of Association

Articles of Association, if any which should be signed by the subscribers to the Memorandum of Association.

Any agreement with the individual persons who are proposed to e appointed as Managers, Directors or Managing Director of the company.

A statement of the nominal capital of the Company. A notice of address of the registered office of the company. 

List of the Directors who have agreed to become the first Directors of the company along with their consent to act as Directors and to take up the qualification shares of the company in the case of a public company.

 Other declarations and documents

Incorporation & Commencement Stage: If the Registrar of Companies is satisfied that the entire requirement has been fulfilled then he will register the company and enter the name of the company in the Register of Companies. This stage is known as ‘Incorporation Stage’. When a company is registered and its name in entered in the register of companies, the Registrar will issue a Certificate of Incorporation.

Company Act, 2013 In India the journey of company law started under the Companies Act, 1956 but in the year 2013 new company law was enacted by the Parliament which finally received the president’s acceptance and was made effective w.e.f. 12-09-2013. The new has brought in some changes to the existing one and has also introduced some new concepts in the field of company law. Some of thesalient features of the new law are as follows:

1. Democracy of Shareholders: The new law has introduced new concept of class action suits with a view of making shareholders and other stakeholders more informed and knowledgeable about their rights so that they can be saved from exploitation.

2. Strengthening Women Contributions through Board Room: The new act stipulates appointment of at least one woman Director on the Board of the prescribed class of Companies so as to widen the talent pool enabling big Corporates to benefit from diversified backgrounds with different viewpoints.

3. National Company Law Tribunal: The act has also introduced National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) to replace the Company Law Board and Board for Industrial and Financial Reconstruction. This has been done to release courts from the over burden which they faced.

4. Increase in number of Shareholders: The 2013 act has increased the number of maximum shareholders in a private company from 50 to 200.

5. One Person Company: The new act has also introduced a new form of private company, i.e., one person company that may have only one director and one shareholder.

6. Corporate Social Responsibility: The 2013 act stipulates certain class of Companies to spend a certain amount of money every year on activities/initiatives reflecting Corporate Social Responsibility. There may be difficulties in implementing in the initial years but this measure would help in improving the Under-privileged & backward sections of Society and the Corporate would in fact gain in terms of their reputation and image in the Society.

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Advocate S. Selvakumar