The action of the Cooperative Society is lawful in terms of the decision of the Supreme Court in Indrani Wahi vs. Registrar of Coop. Societies & Ors. It has been held -
"19. Insofar as the instant aspect of the matter is concerned, there is no doubt in our mind, that even Rules 127 and 128 of the 1987 Rules, lead to the inference, that in case of a valid nomination, under Section 79 of the 1983 Act, `the Cooperative Society' is liable to transfer the share or interest of a member in the name of the nominee. We hold accordingly"
No criminal charges could be brought against the Society. The remedy, available for the other legal heirs has been suggested by the apex Court in the concluding lines of the judgment -
"20. ..................It shall however, be open to the other members of the family (presently only the son of Biswa Ranjan Sengupta – Dhruba Jyoti Sengupta; we are informed that his mother – Parul Sengupta has died), to pursue his case of succession or inheritance, if he is so advised, in consonance with law."