Legal Question in Real Estate Law in India

Appendix 14, clause no.4 of the co-operative housing society laws (mumbai) provides that nomination can be made in favour of more than one nominee. However, clause no. 5 of Appendix 14 mentions only first named nominee and states that share certificate will be transferred in the name of the first named nominee on submission of Application for membership and Indemnity Bond.

Question : On the death of the member who has made the nomination, will the Share Certificate be transferred in joint names as mentioned in clause no. 4 of Appendix 14 on submitting Application as per Appendix 15 (Under bye-law no. 34) ?


Asked on 3/05/12, 9:38 pm

1 Answer from Attorneys

IqbalAhmed Shaikh Moavin Legal Associates

Section 30(1) : On the death of a member of a Society, the society shall transfer the share or interest of the deceased member to a person or persons nominated in accordance with the rules. Or if no person has been so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member.

Provided that such nominee, heir or legal representative, as the case may be duly admitted as a member of the Society.

It is very clear on the plain reading of the section that the intention and purpose of Section 30 of the Maharashtra Co-operative Societies Act is to provide for who has to deal with the society on the death of a member and not to create a new rule of succession. The purpose of the nomination to make certain that the person with whom the society has to deal on the death of a member. The society has to deal with the legal nominee who has been nominated by the deceased member on the records of the society. The purpose of this section is to avoid confusion in case there are dispute between the heirs and legal representatives and to avoid uncertainties as to with whom the society should deal to get proper discharge. The society is not concerned with any kinds of dispute raised by any person whosoever, so for the transfer of membership of deceased member to his nominee is concerned. Nevertheless all the persons entitled to the estate of the deceased as per succession law applicable to them do not lose their right to the same, even after transfer of the shares in the name of the deceased member.

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Answered on 3/07/12, 5:08 am


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