I am a member in coop Housing society. I learnt the provision of bye law no .34 under which it is provided that after the death of member the property shall transferred to Nominee.
I want to know that when the property is bought by Husband and wife jointly, the husbands name stands first and as per the above provision after the death of member although the Associate member generally a wife of member does not get right / interest. In the property.
We think t(at this is totally unreasonable and such a provision must be struck down. Is there any ruling from higher court? What is ur opinion. I shall be very happy if u enlighten on the above.
I C Naik
It is true that upon death of the member of a CHS nominee registered with the Society by such member is admitted to membership if there are no other claimants to the same.
When the property is bought by Husband and wife jointly both are entitled to the joint membership. They have to inform the Management Committee the name of the joint member with whom it should deal with and that person will be admitted as a member the share certificate will be issued showing 1st name of that person. The other member can apply to be admitted as associate member for which there is a separate form of application. This is not compulsory.
Bye-law No 34 [2014 Model ] reads as under:
- Subject to the provisions of the Section 30 of MCS Act. 1960 bye-law No. 17A or 19, on the Death of a Member, theSociety shall transfer the shares and interest of the deceased Member in the Capital/Property of the Society to the Nominee/Nominees and in proportion with the shares and interest held by the deceased Member, in case property is purchased by Member and associate Member jointly. In the event of death of the Member, Nominee/Nominees shall submit the Application for Membership, within six months from the death of a Member. If there are more than one Nominee, on the death of a Member, such Nominees shall make Joint Application to the Society and indicate the name of the Nominee who should be enrolled as Member. The other nominees shall be enrolled as Joint/Associate Members unless the nominees indicate otherwise. The nominees shall also file an Indemnity Bond in the prescribed form Indemnifying the Society against any claims made to the shares and interest of the deceased Member in the Capital/Property of the Society by any of them, in case only one nominee is indicated by the Nominees for Membership of the Society.
Note:- In case of acquiring Membership on the basis of Nomination, such Member shall hold the flat / unit in ‘trust’ till all the Legal Heirs are brought on record and shall not have the right to ownership and shall not create third party interest or alienation in any way whatsoever. [Contradicts 36.?
Your view of the above bye-law is “Associate member generally a wife of member does not get right / interest in the property”
Nomination process under Housing Society law is somewhat messy. Bye-laws are not drafted properly to prevent the confusion to succession issue. However it is not at all a losing proposition for an Associate member especially where the Associate is a wife of a member.
Many members lack clarity in understanding “the flat” ownership and membership. Right / interest in the property of the Society is evidenced by the flat purchase agreement and the membership is evidenced by the share certificate issued by the Society. In case of “Succession” to flat these two things are confusing to members. The titles to ownership are to be verified in the registered agreement and upon the death of the owner, Succession Certificate read with the flat purchase agreement provides the evidence of the ownership.
Having understood this well you should find your answer. If not do write down your confusion (modified) once again to me.