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NOMINATION IN CO-OPERATIVE HOUSING SOCIETY Succession, Probate or Legal Heirship Certificate a must
Chinnmay Shah 12 Aug 2020

NOMINATION IN CO-OPERATIVE HOUSING SOCIETY Succession, Probate or Legal Heirship Certificate a must

NOMINATION IN CO-OPERATIVE HOUSING SOCIETY
Succession, Probate or Legal Heirship Certificate a must.


Amendment to The Maharashtra Co-operative Societies Act, 1960
Law relating to nomination, testamentary succession and transfer of shares in Co-operative Housing Society.
It has been experienced and seen that law relating to nomination and succession in Housing Societies has been interpreted vide plethora of judicial decisions. One of such recent judgments on section 30 MCS ACT was by the Bombay High Court in Shakti Yezdani and Ors. v. Jayanand Jayant Salgaonkar and Ors. 2017(1)BomCR319 where under paragraph No. 20 it was clarified that:
“Notwithstanding the provision of Section 80 of the West Bengal Act of 1983 which mandates that on the death of a member of a Cooperative Society, his share or interest shall be transferred to nominee, the Apex Court (in Indrani Wahi case) did not hold that nomination supersedes the succession or inheritance in accordance with law.”
Amendment : The Maharashtra Co-operative Societies Act, 2019
But recently the controversy revolving around law of nomination under co-operative housing societies has finally been settled by the state legislature under the Maharashtra Co-operative Societies (Amendment) Act, 2019 effective from 9th March 2019.
The Maharashtra Co-operative Societies Act, 1960 has been amended to include a new Chapter XIII-B which deals with provisions exclusively applicable to housing societies.
As per the newly introduced Section 154B-13 of the Maharashtra Co-operative Societies Act, 1960 (which overrides section 30 mentioned above), a society can transfer the interest of the deceased member in the flat only when testamentary documents or succession certificate or heirship certificate or document of family arrangement has being produced by the legal heirs of the deceased member or person/s entitled to the flat.
The first proviso under this section further clarifies and clear the clouds of doubts that a nominee shall only be admitted as a provisional member in place of the deceased member till the time legal heirs or person/s entitled to the flat are admitted as member/s.
The concept of “provisional member” has been newly incorporated and the term has been defined under section 154B-1(18) as a person who is duly admitted as a member of a society temporarily after the death of a member on the basis of nomination till the admission of legal heir/s as the member of the society in place of a deceased member.
Conclusion :
In light of the recent Maharashtra Co-operative Societies (Amendment) Act, 2019 the long-standing controversy of nomination vs. succession has been put to rest once and for all.

Did you find this write up useful? YES 12 NO 5
Priti Gupta   27 Nov 2020 11:53pm
I would like to know that if 100% nominee and only legal hier then also probate required?
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Priti Gupta   27 Nov 2020 11:53pm
I would like to know that if 100% nominee and only legal hier then also probate required?
Reply
  11 May 2021 8:16am
A nominee is just a caretaker of the share being allocated to him, he cannot claim ownership on it is very much advisable for the concerned person to obtain succession certificate/legal heirship certificate/probate or etc from the court which will help the society to safe gaurd itself for any future consequences. Thought, according to Section 30 of the Maharashtra Cooperatives Societies Act, for instance, the society is legally allowed to transfer the property in the name of the nominee, in case the owner has submitted the nomination form to the society, in respect of that property but it is always advisable as per supreme court guidelines to obtain such certificate before transferring any movable or immovable assets.
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pradeep Satankar   26 Aug 2020 1:51pm
yes, its really very much useful. i being the chairman of housing society in Pune, was under the impression that, the managing committee of a housing society can straight away transfer the flat in the name of valid nominee available on record and accordingly change or put the name of nominated person in the share certificate in the capacity of a trustee for legal heirs of subject flat. however, as per new amendment, we are bound to give only provisional membership to nominee till such time, the legal heirs bring forth the succession or heir ship certificate from proper court of law. thanks a lot for sharing the useful article.
Reply
  11 May 2021 8:10am
Thank you so much for liking this article. The Golden word is a Nominee is just a caretaker of the share under which he is nominated and he cannot claim ownership on that part.
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