Status of nominee
Hello, Does the Supreme Court Verdict of 2016 on Nomination in Cooperative Housing Society give the status of owner to the nominee after the death of the owner. i.e. after the transfer to the nominee can s/he sell the flat or does the nominee after the death of the owner still require no objection letter from other legal heirs? Thank you, Regards, Romi
The answer to your query in plain and simple words would be that yes, the nominee has the legal right to property. The respective cooperative society doesn’t stand a chance in the claiming the right to nominee.
Indrani Wahi Vs. Registrar of Cooperative Societies and Others
The main point of observation here is that by way of a deed, transfer of ownership in the name of the nominee – gives the nominee the absolute right over the property despite the existing legal heirs of the deceased. This is exactly what the language of the above mentioned case is. Where despite the wife’s legal claim over the property (in the capacity of a legal heir) of the husband, the property finally went on to exchange hands from the husband to the daughter (who was a valid nominee after the death of the father). The online link of the judgement is made available to you by us (at the bottom of the page).
The specific matter was brought up in the state of West Bengal thereby, affecting the law in the specific provisions of Section 79 of the West Bengal Cooperative societies Act 1983 and Rule 127 of the West Bengal Cooperative Society Rules 1987.
Similar is Section 30 of the Maharashtra Cooperative Society Act 1960, Act which says :- “On the death of a member of a society, the society shall transfer the share or interest of the deceased member to a person or persons nominated-in-interest in accordance with the rules or, if no person has been nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member.”
 2016 AIR (SC) 1969
Nominee have no right in the property. He is only acting as a trustee or an administrator. Pls refer section 30 (4) of Maharashtra co_operative sovieties act. His NICE is not required when legal heirs are alive.
Transfer the Flat in the name of Nominee as per Nomination recoded by the society is binding on the Society. As far as title of the Flat is concerned it can be challanged by the other legal heirs as per sucession act.
In accprdence with the settled law it is confirmed that the Nominee is the absolute owner of the property in a co-operaive Society , unless of courrse the other legal owners file a case challenging the title by succession under Hindu law , then it is for that Court to decide the ownership of the property by succession. General Transfer of the Property will suprseed the Co-opertaive law.
Nominee is just worked as trusty, he only work for beneficary, nominee has only power of custody but legal heirs by legal heirs ceritficate can get the membership of the said society, so if nominee want to sell the property then he still require NOC from legal heirs and if legal heirs are minor then nominee will act as a guardian by taking permission from duputy registrar.
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