I am reproducing below byelaw No. 37
37. Where a member of the society dies without making a nomination the society shall invite, within one month of his death, claims or objections to the proposed transfer of shares and interest of the deceased member in the capital/property of the society by a public notice, in the prescribed form, exhibited on the notice board of the society. lt shall also publish such notice in at least two local news papers, having wide circulation. The entire expenses of publication of the notice shall be recoverable from the value of shares and interest of the deceased member in the capital/property of the society. After taking into consideration the claims or objections received in response to the said notice, and after making such enquiries as the committee considers proper, in the circumstances prevailing, the committee shall decide as to the person who in its opinion, is the heir or legal representative of the deceased member. Such a person will be eligible to be a member of the society subject to the provisions of the bye-laws Nos.17(a) or 19 provided that he gives along with his application for membership in the prescribed form, 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, at any time in future. lf there are more claimants than one, they shall be asked to make the affidavit as to who should become a member of the society and such person, named in the affidavit shall furnish the indemnity bond as indicated above along with application circular for membership, referred to above. lf, however, the committee is not able to decide as to the person, who is the heir/legal representative of the deceased member, or the claimants do not come to an agreement, as to who should become the member of the society, the Committee shall call upon them to produce succession certificate from the Competent Court. lf, however, there is no claimant, the shares and interest of the deceased member in the capital/property of the Society shall vest in the Society.
This is from Model byelaws approved by the Commissioner for Co-operation as well as the Federation. In fact there is also byelaw corresponding to Section 73 of the Co-operative Societies Act. Actually the particular byelaw precedes Section 73 by several years. If any claimant comes up later, the dispute would between him and the existing member. Only the new claimant has to be asked to produce court order to enter his name in the books of the Society.
If there has been a court verdict holding the Managing Committee members responsible under Section 73 or otherwise in similar circumstances, I would like to see.