The deceased had not executed a will. But his two daughters have submitted nomination form. Was the nomination made by the deceased during his lifetime and registered with the Society? If so read the following.
U/s 35 of the Maharashtra Co-operative Societies Act,1960 if a nomination has been made the Society can transfer the interest in the capital and property of the society to the nominee. According to the judgment in the Indira Wahi vs, Registrar of Co-op. Societies civil appeal no.4646 and 4930 of 2006 if there is a valid nomination made during the lifetime of the deceased the interest can be transferred to the nominee. Legal heirs, if any, can agitate in a court of law and claim their rights later. If no one is admitted as member of the society waiting for legal heirs to make claim, who will pay the dues to the society from time to time? Maharashtra Government had introduced some ambiguous sections in this regard through an ordinance. But I understand that as they were not passed into law by the legislature they got lapsed
If they so feel, the society can take an indemnity bond from the nominee that if in future any dispute arises any legal expenses that may have to be borne by the society shall be reimbursed by the nominee to whom the interest in the property was originally transferred