Friday, December 3, 2010

Co-operative housing society Act bye laws maharashtra india Sarfaesi in co op bye-laws

Nomination for your flat must to avoid hassles in the future

It can ensure smooth transfer of membership in the CHS after the death of the flat owner

Nomination by a member in a cooperative housing society is an important responsibility to be essentially carried out to ensure smooth transfer of membership after his/her death to the heir/legal representative. A member, when alive can nominate one or more persons of his choice and can revoke or vary the nomination as many times as felt necessary. The society should also encourage the members to submit the nomination at the earliest to safeguard the interest of the immediate family or dependents as the case may be. 
Sub-Section(1) of Section 30 of The Maharashtra Cooperative Societies Act 1960 specify that on the death of a member of the society, the society shall transfer the share or interest of the deceased member to a person or persons nominated in accordance with the rules. Rule No.25 and 26 of Maharashtra Cooperative Rules 1961 specifies the procedures for submission /revoking of nomination and registration of such nomination/revocation in society records. Bye-law Nos.32 and 33 of Model Bye-laws specify similar conditions for submission and registration of nomination in cooperative housing societies. 
The managing committee is required to consider the application for nomination from a member, approve the same and record it in the nomination register. The member should be provided with the approved copy of the nomination form for his record. On the death of a member, the society after receiving the death certificate and application for membership from the nominee/s in format under Appendix-15; following the provisions of Bye-laws no. 34, 17A, 19 and Section 30 of MCS Act 1960, shall transfer the shares and interest in the capital/property of the society to the nominee/s.
It shall be kept in mind that the intention of specification under section 30 of MCS Act is only to provide for who the society has to deal with on the death of a member and not to create a rule of succession. Though in law, the society has no power to determine the heirs or legal representatives, in order to obviate difficulty and confusion, the section for a limited purpose confers the right to determine to whom the society can transfer the shares of the deceased member as legal representative/heir. 
The admission of the nominee as a member is only to provide for interregnum between the death and the full administration of the estate and not for the purpose of conferring any permanent right on such person, who in fact shall act as a trustee on behalf of the successors /heirs. The legal heirs or the persons entitled to the estate are decided in a court of law. The society will be bound by such court orders. It is to be noted that a will executed under law will supercede a nomination.

1 comment:

  1. Is it still valid?
    Further, under the rules, a provisional list of voters should be prepared by every notified society in the year in which the election of the society is due to be held. Persons who have completed a minimum two years as members from the date of their enrolment should be included in the provisional list.


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