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NOMINATION IN A COOPERATIVE HOUSING SOCIETY

OUTLINE
Concept of Nominee
Applicable Statues Procedure

Case Laws

CONCEPT OF NOMINEE
The term nomination or nominee has not been defined anywhere.
However, the provisions of nomination is found in various statutes

relating to L.I.C, Provident Fund, Gratuity etc. In SMT SARBATI DEVI v. SMT USHA DEVI, A.I.R. 1984 SC, 346 it was held that nomination does not confer any beneficial interest in the nominee and the other legal heirs can claim the amount in accordance with the law of succession governing them. Therefore as a principal one 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 to the property, and the nominee cannot exclude other heirs. In other words the provisions of ordinary succession law will not be affected by nomination.

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

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 interest of the deceased member to the person or persons nominated in accordance with the rules. In case no such person or persons have been nominated by the deceased the Committed of the Society shall transfer the share or interest to such person who may appear to be the heir or the legal representative of the deceased member.
Rule 25 (1) of the MCS Rules, 1961 provides the following ways in

which nomination can be made by a member: (i) By a document signed by the member. Such document is to be deposited with the society during the members lifetime.

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 and attested by one witness. The nomination made above can be revoked or varied by any other nomination made in accordance with the above procedure. (Rule 25 (2)) Rule 25 (3) provides for the eventuality where the member of a society has not made any nomination: - In the event of the death of member where no nomination is made the society calls for any claims or objections for the proposed transfer of share or interest of the deceased within the time specified in the notice by putting up a public notice at the society office.

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 making such inquiries as the committee considers proper the committee shall decide as to the person who in its opinion is the heir or the legal representative of the deceased member and proceed to take action under Section 30.

CASE LAWS
In Ramdas Shivram Sattur v. Rameshchandra Popatlal Shah, the
Bombay High Court, relying on Sarbati Devi, held that "the purpose of nomination under Section 30 of the Maharashtra Cooperative Societies Act, 1960 is essentially to provide for the discharge of the societies obligation and that a nomination does not lay down any special rule of succession of properties of a deceased member overriding the general rules of inheritance prescribed by the personal law of the member of a cooperative society."