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NOMINATION IN ACOOPERATIVE

HOUSING SOCIETY

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OUTLINE

Concept of Nominee

Applicable Statues

Procedure

Case Laws

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CONCEPT OF NOMINEE

The term nomination or nominee has not been defined anywhere.

However, the provisions of nomination is found in various statutesrelating to L.I.C, Provident Fund, Gratuity etc.

In SMT SARBATI DEVI v. SMT USHA DEVI, A.I.R. 1984 SC, 346 itwas held that nomination does not confer any beneficial interest in thenominee and the other legal heirs can claim the amount in accordancewith the law of succession governing them. Therefore as a principalone can very well say that nominee is mere trustee with whom society

can initially or prima facie deal with and after the death of a member,all the heirs of the deceased member will have a right of succession tothe property, and the nominee cannot exclude other heirs. In otherwords the provisions of ordinary succession law will not be affected bynomination.

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APPLICABLE STATUTES

MAHARASHTRA COOPERATIVE SOCIETIES (MCS) ACT, 1960

- Section 30 provides for Transfer of Interest on Death of a Member

MAHARASHTRA COOPERATIVE SOCIEITIES RULES, 1961

- Rule 25 provides for rules relating to Nomination of Persons

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PROCEDURE OF

NOMINATION Section 30 (1) of the MCS Act, 1960 provides that on the death of a

member of a society, the society shall transfer the share or the interestof the deceased member to the person or persons nominated in

accordance with the rules. In case no such person or persons havebeen nominated by the deceased the Committed of the Society shalltransfer the share or interest to such person who may appear to be theheir or the legal representative of the deceased member.

Rule 25 (1) of the MCS Rules, 1961 provides the following ways inwhich nomination can be made by a member:

(i) By a document signed by the member. Such document is to bedeposited with the society during the members lifetime.

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PROCEDURE OF

NOMINATION (Cont.)(ii) Nomination by way of a statement in any book kept by the society for

the purpose and such statement to be signed by the member andattested by one witness.

The nomination made above can be revoked or varied by any othernomination made in accordance with the above procedure. (Rule 25(2))

Rule 25 (3) provides for the eventuality where the member of a societyhas not made any nomination:

-In the event of the death of member where no nomination is madethe society calls for any claims or objections for the proposed transferof share or interest of the deceased within the time specified in thenotice by putting up a public notice at the society office.

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PROCEDURE OF

NOMINATION (Cont.)- The society shall after taking into considerations the claims or

objections received in reply to the notice or otherwise and after makingsuch inquiries as the committee considers proper the committee shall

decide as to the person who in its opinion is the heir or the legalrepresentative of the deceased member and proceed to take actionunder Section 30.

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CASE LAWS

In Ramdas Shivram Sattur v. Rameshchandra Popatlal Shah, theBombay High Court, relying on Sarbati Devi, held that "the purpose ofnomination under Section 30 of the Maharashtra Cooperative

Societies Act, 1960 is essentially to provide for the discharge of thesocieties obligation and that a nomination does not lay down anyspecial rule of succession of properties of a deceased memberoverriding the general rules of inheritance prescribed by the personallaw of the member of a cooperative society."

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