I am a secretary of society want to know about ” after death of original member flat is transfer in the of nominee, then this nominated member can nominate said flat to next party as he is not absolute owner of flat “.
I C Naik
Very interesting question
Nomination is a facility devised U/S Section 30 – “Transfer of interest on death of member” with a view to make it easy for the Committee to administer the flat irrespective of the ownership. Nominee is a trustee member and holding the flat on behalf of an unidentified owner. Where such a trustee makes nomination he is acting on behalf of the unidentified owner. He is a member as far the Committee is concerned. In fact the Committee should insist that he makes nomination forthwith so that if he were to die the flat does not become orphan. As such the statute mandate that: “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 accordance with the rules;”
If a nominated member dies, the Committee is bound to admit the nominee to membership as aforesaid. It is for smooth administration of the flat.
The Commissioner for Cooperation and the Registrar of Cooperative Societies has been confusing housing societies through improvised Models of Bye-Laws from time to time. For example, look at the following note appended to Bye-Laws on nomination in the latest Bye-Laws Model 2014.
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.
The intent of Section 30 is not what above note represents. This note is wholly unwarranted and creates confusion.