If a member of Co-operative housing society dies, what happens to his or her membership in the society? In case there is no proper nomination made by the deceased member, what is the position of his or her heirs as to the property rights? What should be done by a member to avoid any confusion after death? These questions are very important and members should take steps to prevent any awkward situation in the eventuality.
A proper nomination by a member as provided under the Bye-laws, therefore assumes extreme significance in the functioning of a society. It is in the interest of both society and the members in order to protect the rights of family members.
The scope and object of Nomination
The Section 30 of Maharashtra Co-operative Societies Act 1960 empowers a society to transfer the share or interest of a deceased member, to a person nominated by him or to his heir of legal representative when duly admitted as a member according to Rules 25. The acceptance of nomination by the society would not conclude the question of title. Nomination will always be subject to a proper title decided by the court. (Kalpak CHS v/s Surya Prabhadevi (1997) I CLS 54).