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Ashwin Gogte   13 February 2025

Sole heir nominee - transfer of flat

I am the only child of my parents, both of whom are deceased. My late father owned a self-purchased flat in a cooperative housing society in Mumbai and had nominated me as the successor. The building is scheduled for demolition as part of a redevelopment project.

I have not yet applied to transfer the flat into my name. Besides the nomination, share certificate, and death certificates of both parents, are there any other documents I need to submit for the transfer?

The society is insisting that I vacate the flat before the transfer is completed. Additionally, the builder and society are threatening to impose penalties on me for delays, citing the development agreement they signed. How should I proceed in this situation?



 12 Replies

Dr. J C Vashista (Advocate )     13 February 2025

You are required to apply to the Society for transfer of membership and undertake to abide by its bye-laws / rules.

Ashwin Gogte   13 February 2025

Thank you, Vashista sir, for your response. My father passed away in January 2025. Today, I contacted the secretary to schedule an appointment to apply for the transfer of membership. He informed me that I need to obtain a succession certificate to complete the process.

On February 1st, the society received a notice from the builder instructing all residents to vacate the building by March 15th. The secretary is now insisting that I vacate the flat by the given deadline. The development agreement includes a clause stating that any member who delays vacating will be held financially responsible for any losses incurred by the builder.

Given this situation, how should I proceed? What legal steps can I take to protect my rights?

Sathish Karampuri   13 February 2025

Approach the court for DECLARATION OF LEGAL HIER through advocate for your deceased father properties

Vishesh K Sapra (Advocate Delhi High Court and Supreme Court)     13 February 2025

Hi Ashwin,

Since you are the only legal heir and the nominated successor for your late father’s self-purchased flat in the cooperative housing society in Mumbai, you should proceed with the transfer of ownership as per the Maharashtra Cooperative Societies Act, 1960 and the Maharashtra Ownership Flats Act (MOFA), 1963.

To transfer the flat into your name, you need to submit some docs.

If the society is refusing to transfer the flat until you vacate, this is illegal and can be challenged. Nomination does not confer absolute ownership, but it entitles you to claim the property as per society rules. Since the flat is not yet in your name, you may also have to obtain a legal heirship certificate or succession certificate from the competent court for absolute ownership rights.

Regarding the builder and society threatening penalties for delay, check whether you have been made a direct party to the development agreement. If your name is not mentioned, they cannot impose penalties on you unilaterally. You can challenge such demands in court if they try to coerce you into vacating without legal transfer.

You may also approach the Deputy Registrar of Cooperative Societies if the society is unreasonably delaying the transfer. If threats and harassment persist, you can file a legal notice against the builder and society and, if necessary, approach the Consumer Court for unfair trade practices.

For further consultation, reach out at adv.vishesh@icloud.com.

P. Venu (Advocate)     13 February 2025

Being the sole legal heir, the rights and interests in the property has devolved upon you. What is required is the membership in the Society. Being the nominee, the Society can transfer the samw without insisting upon too many a formality/

T. Kalaiselvan, Advocate (Advocate)     13 February 2025

Even though you may be the only lega heirs to your parents, you may first try to get the property share certificate transferred to your name  

     

Dr. J C Vashista (Advocate )     14 February 2025

Just obtain legal heir certificate from area SDM/Tehsildar and submit to Society, however, meanwhile handover vacant possession of the flat to builder for development.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     16 February 2025

Under Byelaw No.34 of the Model Byelaws of Co-operative Housing Societies, 2014 promulgated by the Registrar of Co-operative Housing Societies, Maharashtra, you have to and you can apply for membership of the Society. The application can be made in the form given in Appendix-15 of the byelaws. Copies of the Model Bylaws are available on payment from the office of the Federation of Co-operative Housing Societies situated near Horniman Circle. Your application should be accompanied by death certificate of your father, the share certificate and a cheque in favour of the Society for admission fee. The admission was Rs.100/-. You can ascertain from the Federation the current amount. The Society should communicate to you in due course their acceptance or denial of membership. If they do not communicate to you their decision within 3 months, under Section 22(2) of the  Co-operative Societies Act, 1960, you will be deemed to have been accepted as member of the Society. In case the Secretary refuses to accept your application, you hand over them to the Assistant Registrar of Co-operative Societies with respect to your Municipal Ward. He will send them to the Society and ask for their reply. If they do not reply within the time stipulated by him or if their reply was not satisfactory, the Registrar shall issue orders deemed to have admitted you as member of the society.

If the builder wants you to vacate the flat, the requirement will be applicable to other members also. Your late father may also have known the requirement. Are the members given alternative interim accommodation by the Builder or Society or are the members given cash compensation? We shall look into that issue once your application is accepted by the Society or the Registrar.

There were High Court judgments stating that a nominee shall not be beneficial owner of the property. Now I understand that all those judgments have been quashed by the Supreme Court.

1 Like

P. Venu (Advocate)     16 February 2025

"Now I understand that all those judgments have been quashed by the Supreme Court.

The relevant paragraphs of the Supreme Court in the case of  Indrani Wahi (CA No. 4646 of 2006 decided on March 10. 2016) is as follows:

"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.


20. Having recorded the above conclusion, it is imperative for us to deal with the conclusion recorded in paragraph 6 (already extracted above) of the judgment of this Court in the Usha Ranjan Bhattacharjee case (supra). In this behalf, it is necessary to clarify that transfer of share or interest, based on a nomination under Section 79 in favour of the nominee, is with reference to the concerned Cooperative Society, and is binding on the said society. The Cooperative Society has no option whatsoever, except to transfer the membership in the name of the nominee, in consonance with Sections 79 and 80 of the 1983 Act (read with Rules 127 and 128 of the 1987 Rules). That, would have no relevance to the issue of title between the inheritors or successors to the property of the deceased. Insofar as the present controversy is concerned, we therefore hereby direct `the Cooperative Society' to transfer the share or interest of the society in favour of the appellant – Indrani Wahi. 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"

The decision has been in the context of West Bengal Cooperative Socieites Act, 1973.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     16 February 2025

Indirani Wahi judgment is 9 years old. My reference is to a recent supreme court judgment.

Ashwin Gogte   17 February 2025

I sincerely appreciate everyone's helpful responses.

I have submitted the application along with the death certificates of my father and mother, the indemnity bond, affidavit, and a cheque for the required fees. The secretary informed me that the transfer will be recorded on the reverse side of the original share certificate. However, two members of the managing committee are requesting a succession certificate before issuing the share certificate in my name.

The builder has stated that rent payments will be made to me, but the allotment letter and PAAA will be put on hold until the society completes the transfer process. According to the development agreement, the society is required to vacate the premises by March 15. Any member who delays vacating will be responsible for covering the rent of those who have already vacated.

My primary concern is ensuring that my rights are protected until I receive the necessary documents in my name.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     17 February 2025

The Managing Committee members who are requiring succession certificate are ignorant of the law and giving you unnecessary problems. Section 30 of the Maharashtra Co-operative Societies Act, 1960, Rule 25 of the Maharashtra Co-operative Societies Rules 1961 and Byelaw No.34 stated by me earlier deal with the transfer of rights of a deceased member. Nowhere is there mention of succession certificate. Instead of helping you, the two managing committee members are giving you problems. If you try for succession certificate, it will take years. Has the Secretary given you a written reply? Has he returned the share certificate? If he still refuses to transfer you get back the documents from him and submit them before the Assistant Registrar of your Ward as advised by me earlier. I am member of a co-operative housing society in Mumbai and I was Secretary for several years. In your case there is clear valid nomination. The Act and Rules provide for tranfer even when there is no valid nomination.


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