Supreme Court of India · Judgment · 10.03.2016
A society must transfer a deceased member’s flat to the nominee — title is a separate question
The Supreme Court held that where a member has made a valid nomination, the co-operative society has no option but to transfer the membership and the share or interest in the flat to the nominee. Whether other heirs have a claim to the property is decided separately under succession law.
Key points
- On a member’s death, the society is bound to transfer the membership and share or interest to the person validly nominated.
- The society cannot insist on a succession certificate, probate or letters of administration when there is a valid nominee; those are needed only where there is no nomination.
- The transfer binds the society but does not decide title between the heirs; other heirs remain free to pursue their succession rights in law.
The facts
A member of a co-operative housing society in Salt Lake City, Kolkata had nominated his daughter under Section 79 of the West Bengal Co-operative Societies Act, 1983. After his death, the society’s committee resolved to transfer the membership to her. His son objected, claiming a share as an heir, and the dispute went through the Registrar and the Calcutta High Court to the Supreme Court.
What the Court held
Reading Sections 79 and 80 of the Act with Rules 127 and 128, the Court held that where a valid nomination exists, the society is liable to transfer the deceased member’s share or interest to the nominee; only if there is no nominee does the society act on a probate, letters of administration or succession certificate. The society “has no option whatsoever” but to transfer the membership to the nominee. That transfer, however, has no bearing on title between the heirs. The Court directed the society to transfer the share and interest to the daughter, leaving the son free to pursue his claim of succession in accordance with law.
Why it matters in Maharashtra
The judgment interprets the West Bengal Act, but the scheme in Maharashtra is similar (Section 30 of the Maharashtra Co-operative Societies Act and the bye-laws on nomination), and it is widely relied on. For societies: act on a valid nomination and admit the nominee; do not adjudicate disputes among heirs. For members: a nomination makes the transfer of membership smooth but does not take the place of a will — the nominee may hold the flat subject to the rights of the legal heirs.
22-page judgment in English. This page summarises the decision for general information; it is not a substitute for the full text and not legal advice. Check whether the decision has since been appealed, modified or overruled.
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