It is advisable that members fill in nomination for their property with society. Incase of unforeseen circumstance, transfer of share can be easier because of above form. This article discusses about case where nomination is not filled.
Query : On death of the owner of property, how to transfer share where nomination is not filled.
This question is answered in three parts:
Part 1: Byelaws Clause 11. The Transfer of Interest of a Deceased Person:
When any member has expired and upon receipt of satisfactory proof thereof, the Committee is entitled under the Gujarat Co-operative Societies Act, 1961 and as per the rules framed thereunder and as per the byelaws of the Society, to transfer the shares or beneficial interest of the said person, in the name of a legal heirs of the said member and when no such person is appointed then, the committee is entitled under the Section 31 of the Gujarat Co-operative Societies Act, 1961 to transfer the shares in the name which appears to the Committee as legal heir or the Committee is entitled to give the amount of his share or interest calculating as per the law and after the due amount which may have been due from the deceased member to such person appointed as legal heir or to the legal heir after getting the required bond from the legal heirs. But, if it is a fixed deposit then, the same can be given only after expiry of its tenure.
Part 2 : Section 31 : Gujarat Cooperative Society Act, 1961
- On the death of a member of a society, the society shall subject to the provisions of sub-section (2) transfer his share or interest in the society to a person or persons nominated by such member in accordance with the rules or, in the absence of such nomination to such person as may appear to the Committee to be the heir or legal representative of such member.
- No such transfer shall be made unless such nominee, heir or legal representative, as the case may be, is duly admitted as a member of the society.
- Notwithstanding anything contained in sub-section(2), any such nominee, heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member, ascertained as prescribed.
- A society may pay all other moneys due to the deceased member from the society to such nominee, heir or legal representative, as the case may be.
- All transfer and payments duly made by a society in accordance with the provision of this section, shall be valid and effectual against any demand made upon the society by any other person.
- Nothing in the foregoing provisions of this section or section 22 shall be construed to prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise, any share or interest of a deceased member of a society, but his liability in consequence of such acquisition shall be limited to his interest in the shares of the society and the unpaid dividends as also the loan, stock, bonds, if any, and the interest earned on them which is unpaid and he shall not have the right of voting.
- A person under any such disability as is referred to in clause (a) shall, on his disability ceasing, furnish to the society a declaration of his willingness to become a member. On receipt of such declaration the society, notwithstanding anything contained in this section may, and if it is a co-operative housing society such society shall admit him as a member if he is not otherwise disqualified. A person so admitted shall become
subject to liabilities like any other member of the society.
Part 3 : Documents to Collected
As seen in byelaws and Sec 31 of the Act, committee has the power to transfer share to person whom it appears to be heir / legal representative. Before affecting such transfer, it is advisable to collect below documents:
- Request letter from heir / legal preventative.
- Form A (Membership form)
- ID & Address proof
- Last Sale Deed
- Death Certificate of Owner
- Legal Heir Certificate
- Any document which may show relationship between owner and heir / legal Representative.