Nominee of deceased in a Cooperative Society is entitled for ownership by transfer

Chanced upon this rather interesting decision. Could be of help / use to some
  • Nominee of Deceased Member is absolutely entitled for the Ownership by transfer.
  • Co-op. Society can not  challenge the right of Nominee. This is a a settled Law of the land.
  • No legal heirship, Court order or Succession Certificate or Letter of Administration is required
  • HOWEVER, here is a catch !!- read on to know !
Case : Indrani Wahi versus Registrar of Coop Societies & Ors. in Ciivil Appeal No. 4646 of 2006. Here’s the link to download it:

Para 15 , end(Page 16 and 17 ) says  :

“It   is   also   essential   to notice, that the rights of others on account of an inheritance or succession   is   a   subservient   right.   Only   if   a   member   had   not exercised the right of nomination under Section 79, then and then alone, the existing share or interest of the member would devolve by way of succession or inheritance. ”

Further , Para 18 :

Rule   128   of   the   1987   Rules   also   leads   to   the   same inference. Inasmuch as Rule 128 aforementioned provides, that only in the absence of a nominee, the transfer of the share or interest of the erstwhile member, would be made on the basis of a claim supported by an order of probate, a letter of administration or a succession   certificate   (issued   by   a   Court   of   competent jurisdiction)

BUT, still further :

Para20 : That, would have no relevance to the issue of title between the inheritors or successors to the property of the deceased. Insofar as the present controversy is concerned, we therefore hereby direct `the Cooperative Society’ to transfer the share or  interest of  the society  in favour  of the  appellant – Indrani Wahi. It shall however, be open to the other members of the family (presently only the son of Biswa Ranjan Sengupta – Dhruba Jyoti Sengupta; we are informed that his mother – Parul Sengupta has died), to pursue his case of succession or inheritance, if he is so advised, in consonance with law.

So, in essence, the Society has to transfer shares. And the inheritors have to prove their stake. The two matters can not be connected.

Here is the judgement :

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Interesting , surely , depending upon which side are you 🙂