Nominee – Transfer of Shares in Co-operative Housing Society: Maharashtra CHS Act

Source Courtesy: Advocate Sanjeev Kanchan
Transfer of Shares in Co-operative Housing Society: Maharashtra CHS Act
Can Society transfer the Share Certificate in the name of the nominee in spite of objections from legal heirs ?

By Advocate Sanjeev Kanchan

Posted on 10th July 2002 ( Provisions still Valid )

I would like to deal with the above query in detail, since similar problems are faced in many co-operative societies.

For instance, a person has been nominated as a legal nominee by the deceased member in the records of a co-operative housing society. The said deceased husband died in Bombay in 1999, leaving behind him his wife and his two adult sons. The sons have filed their objection with the society and requested them not to transfer the share certificate in the name of their mother, although she is the nominee of the flat as per the records of the society.

Section 30 of the Maharashtra Co-operative Societies Act 1960 deals with the provision of transfer of interest which is as under :-
Section 30 (1) : 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. Or if no person has been so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member. Provided that such nominee, heir or legal representative, as the case may be duly admitted as a member of the Society.

All transfer and payments duly made by a society in accordance with the provisions of Section 30(4) shall be valid and effectual against any demand made upon the society by any other person. Rule 25, for the purpose of transfer of his share or interest under sub-section (1) of Section 30, a member of a Society may by a document signed by him, or by making a statement in any book kept for the purpose by the society, nominate any person or persons. Where the nomination is made by document, such document shall be deposited with the society during the members life-time and, where the nomination is made by statement it shall be signed by the member and attested by one witness.

MCS Rule 25 – Section 3
Where a member of a society has not made any nomination, the society shall on the member’s death by a public notice exhibited at the office of the society, invite claims or objections for the proposed transfer of the share or interest of the deceased within the time specified in the notice.

After taking into consideration the claim or objections received in reply to the notice or otherwise, and after making such inquiries as committee considers proper in the circumstances prevailing, the committee shall decide as to the person who in its opinion is the heir or the Legal Representatives of the deceased member and proceed to take action under Section 30.

However, what is important is the section and not the rules and bye- laws in as much as the rules and bye laws cannot provide everything contrary to the section. It is very clear on the plain reading of the section that the intention and purpose of Section 30 of the Maharashtra Co-operative Societies Act is to provide for who has to deal with the society on the death of a member and not to create a new rule of succession. The purpose of the nomination to make certain that the person with whom the society has to deal on the death of a member. The society has to deal with the legal nominee who has been nominated by the deceased member on the records of the society. The purpose of this section is to avoid confusion in case there are dispute between the heirs and legal representatives and to avoid uncertainties as to with whom the society should deal to get proper discharge.

The society is not concerned with any kinds of dispute raised by any person whosoever, so for the transfer of membership of deceased member to his nominee is concerned. Nevertheless all the persons entitled to the estate of the deceased as per succession law applicable to them do not lose their right to the same, even after transfer of the shares in the name of the deceased member.

It is pertinent to note that transfer of any property including share of the society is not governed by the ordinary law but by the provisions of the Maharashtra Co-operative Societies Act, and the rules and bye-laws framed by the Society. However, the right of society to admit a person of its choice as a member cannot be exercised arbitrarily and so as to deprive person of his/her right to the shares or property of a deceased member.

The law does not give a right to the society to refuse membership to a person who is entitled to become a member. To repeat, a society has the right to admit a nominee of a deceased member of an heir or legal representative of deceased member as chosen by the society as a member. A member of the society will have to obtain relief in the normal court against such person and have his rights ascertained and declared, and thereafter apply to the society on the basis of the Court Judgement to make him a member of the society.

Whether nomination is will
From the requirements for making a nomination, one may feel that nomination is Will. But is reality the Nomination is not a Will. Will as nomination filed in accordance with the provisions of rule and bye laws in the prescribed form and general intention (which is must in the Will) is not to provide for succession after death of a member.

Status of a Nominee
The provisions of nomination is found in various Acts, for example, L.I.C., Provident Fund, Gratuity, but the nomination does not create any title or interest in favour of the nominee. In a recent case under the Insurance Act, the Supreme Court in SMT SARBATI DEVI versus SMT USHA DEVI reported in A.I.R. 1984 SC, 346 held that it does not confer any beneficial interest in the nominee and the other heirs can claim the amount in accordance with the law of succession governing them. Therefore as a principal as can very well say that nominee is mere trustee with whom society can initially or prima facie deal with and after the death of a member, all the heirs of the deceased member will have a right of succession to the property, and the nominee cannot exclude other heirs. In other words the provisions of ordinary succession law will not be affected by nomination.

In view of aforesaid facts and the judgement, it is simply clear that the society will have to transfer the shares in the name of the nominee, irrespective of any objection being raised by any other person unless and until the aid objections obtain relief in the normal court against the nominee and society. In my opinion the society has no alternative except to transfer the shares in the name of the nominee.


Transfer Charges, Circular for Transfer Charges in MarathiMCS BYE LAWS FOR TRANSFER OF SHARES75 Transfer to nominee or nominees


67 thoughts on “Nominee – Transfer of Shares in Co-operative Housing Society: Maharashtra CHS Act

  1. does transfer of shares require to be done only in the AGM or managing commite can decide in their meetings. please if u can send me order copy or registrar byelaw . or order of any court.

      • If Property Owner assigns three nominees and one of them is primary holder and allotmentt is as below ,

        Person “A” : 25 %
        Person “B” : 25 %
        Person “C” : 50%

        and mentions Person “C” will be first nominee as section 30 of Maharashtra Co-Operative Society Act.
        Then what are chances of Property Allotment after Owners deaths , will it Work as per Nomination form given to society Or still NOC requires of other two person before making chages to Agreement.
        Also what is power is Nomination form, if “WILL” Or property transfer not done of person.

  2. Yes, shares must be transfer to person or persons nominated according to rules by deceased person. There is no space of objection in this case. In case there is no person nominated then the law permits to transfer shares to legal representative. Legal representative have the right to take ownership of shares.

  3. IF a person has already transfered some shares on somebody’s name can he still make a will and through the will
    seek transfer of those shares, that are no more his , on a third persons name.

  4. if the number of nominees is more than one then who is entitled to get the share ? I have read below the form that irrespective of number of nominees , the first nominee gets all entire right of the flat of the society

    • If a Flat owner mother mentions all her three sons as Nominees in Nomination form with Society, with percentages of 1st son as 40%, 2nd son as 40 %, and 3rd son as 20 % then after death of the mother, whether Society will transfer flat and share certificate in name of only the 1st son, or all the three sons ?

  5. i purchase flat from Mr.x but x name was not in share-certificate will that share -certificate directly transfer in my name

  6. Our society chairman is nominee member. they are six legal hairs( 4 brothers and 2 sister). He is chairman of the society Can he transfer the share certificate of other members? He submit in Indemnity bond that I will submit NOC from other hairs but till now he did not submit the legal hairs NOC

  7. My father was expired on 11 july 2013, and I am the only nomination of 100% of my ROOM address – Sangam CHS@Ghatkopar Pantnanagar, also my mother wants to trransfer the share on my name. Very important is father has made WILL and WILL is registered in registered office with two witnesses.

    Society Chairman, Tressurer & the Secretary they had send me the legal notice by Advocate and asking for PROBATE because my legal heir raised objection. My Elder brother & the three younger sister they also given the notice by Advocate to my Mother, my Wife & to me.

    Please advice without PROBATE.

    • Without a Probate all the legal heirs are entitled to claim their share, right, title and interest in the property of the deceased by way of succession

  8. Very Informative.
    My Mother was the member with our Co-Op Indl Society. She has expired 10 years ago. About 15 years ago, She entered into a partnership with me , my brother and sister and we have operated the business ever since from this Firm. She has also nominated me along with my brother and sister in her nomination form as accepted by the society.
    Now after 10 years we have applied for membership as a nominee, and society has refused saying to get the Succession certificate and that the transfer cannot be done since we are applying 10 years late. The 97th A bye laws clearly state that the application should be made within 6 months, however there is no mention that transfer cannot be done if it is later than that. Please advise.



  10. My father is a member of C.H.S. and fill up nomination form also and fill up legal heirs also. After my father death, the flat transferred to my mother name as per law procedure but can’t fill up nomination form. Now my mother also expired in recent months. And i also all form as per law, but now advocate say that yr all paper is perfect but, u give advertise in new paper regarding no nomination for is fill up by your mother. I want to say that if my father fill up my nomination form and legal heirs and my mother not fill up that nomination form. so why we advertise in news paper. it is compulsory for nominated in news paper its law, give me full details of that laws. And i fill up all form and give to society and give fees to advocate. Now society say yr all paper given to their advocate and his scrutinize fees also paid by us. That is also law, i think our paper verified by society with their advocate and that fees paid by society itself not by me. Please verify this also.

    Thanks from Our society The S.T.C. Co.op. Hsg. Soc. Ltd. , Borivali (W), Meghdoot bldg. eksar road, borivali (w). Mumbai – 92(91).

  11. Suppose in a CHS share certificate there are three names anf also a nominee. If the first holder expires then in whose names will the share certificate be transfered? All the above egs imply that the cert was only one one name. I know abt the nomination rules of the bank but not of CHS. Also thank u MrTantra for informative updates.

    • To the best of my knowledge, it would pass on to the other Joint Holders. But please consult your lawyer for a more detailed opinion.

  12. What is the law in case of transfer of shares in a co op hsg society in terms of no of times. our secretary says that is only once in a year. can you guide us on the same or send me the sec for the same.

  13. Sir, Sorry . I have posted this query under the wrong Post on this web site.. Forgive me.

    Ours is a Registered Co-op. Housing society in Thane Dist. One of our member got divorce from her husband. And Her Name stands First & husband second on share certificate.Now she has requested to remove his name on share certificate & wants to sell her flat. So , she wants NOC from society. We think she got it as alimony after divorce settlement . Now she says her ex-husband is untraceable. What should we do ? what are steps we should take before issuing her NOC. Please answer, Many thanks in advance.

  14. society want probet,there is no will, society cannot transfer the shares in the name of nominee,why society ask for probet? when there is no will

  15. Hi Sir, My self Mr. Patil, I need expertise opinion…….
    My brother in law expired in 2006. His 1 BHK flat is transferred to my sister’s name (His wife)
    Now my sisters mother in law claims ownership to that flat.
    Also, i had nephew of 8 1/2 years old. Please guide me about heirship process & their share percentage…Also, if my sisters mother in law will become legal heir of said flat ….will she able to transfer her share to her nominees…please guide me…..

  16. my father died without a will. me and my brother are the only legal heirs and there is no dispute among us. we are the original members and having been staying here for 40 years plus. can society refuse to transfer share certificate without succession certificate

  17. Hey,
    My father died with a will under my name and nominated me as well in the society for the flat i reside in. The society isn’t ready to transfer the ownership name because my brother has asked them not to because he wants the share in this property. I double checked the will it has clearly mentioned that the property belongs to me. What should i do about the same ?

  18. Can you help me to find out a solution

    My mother hold a share certificate in a Mhdada’s co-op. Society in Vikhroli East. I want to add my name along with my mother in share Certificate. (Joint Owner) to get rights for election & Voting etc.

    it’s possible or not if yes, then how

  19. Can we keep our fiancé as a nominee while registration of the property.
    I am confused as still we are not married and cannot show any blood relation with him

  20. The situation is as below;

    Man buys flat in Mumbai.
    Leaves to work abroad. Leaving flat to be occupied by his mother and youngest brother.
    Man has 78% of shares. Youngest brother 22%
    Man returns after many years and dies in flat.
    Man had wife as his nominee.
    Wife wanted all 100% shares in her name with her children as nominees.
    Youngest brother of husband refuses but signs paper saying on his death all his shares will pass to the children of his eldest brother.
    Wife of deceased brother worried that flat will not be in her name. Wife is abroad. Children are abroad.
    Coudl someone be so kind as to point out the legal standing as you see it?

    • WIFE AS nominee 0f deceasedwould get 78% holding while brother keeps his 22%. I assume the house is in a CHS. If it is independent then too wife as successor would inherit 78% along with children as per Hindu law.

  21. Dear All,
    My Mother has died on 13th Dec, 2014 without making a nominee. Now we want the flat to be transferred in the name of my Father. Giving a NOC from all the family members. As per the By laws, Society shall publish an adv in the newspaper. Can Publish of Adv in newspaper may be avoided and can we submit the succession certificate to the Society in favour of My father? Because, i think society will demand succession certificate at the end. Please reply…

  22. Can a mother who has two sons who were stated as nominee for a residential flat on the society papers make a gift (of this flat) to only one son and thus remove the heir status of the other son without any consent from this son.

  23. My father died in 1989 . He had nominated my and and me in chs. The nomination is not challenged by my sisters in so many years. The share certificates are transferred on my mother and my names. Does it have any time frame to challenge the nomination?

  24. Respected Sir,

    I want to ask you a very critical question. I hope you would able to answer it.

    My husband owned a flat which is a “single Owner agreement” on my husband’s name. we have a child who is Minor. My husband neither made any will nor made a nominations in co op society. He had borrowed a home loan for our respective flat which had a insurance as well.
    after the death of my husband the loan is now waived off and the remaining dues have been paid by me (wife). But now the bank is denying me to hand over the original flat documents since my mother in law is a co applicant in that loan and who is against me. she does not want to give this property to me and my son.
    on other hand the society committee members are asking me to produce Bank Clearance.
    I have already submitted them my court marriage certificate,ration card , self declaration in news papers, receipt of loan closure but still it seems that they are managed and every time ask for different documents.

    So please advice me how should i cop up with…..Any Solution will help me a lot.



  25. माझ्या वडीलाच्या निधनानंतर आम्ही तीन भावानी म्हाडा वांद्रे येथे कार्यालयात नाहरकत प्रमाणपत्र दिले.त्यानुसार म्हाडाने नातेवाईक हस्तांतर आईच्या नावे करण्यास सोसायटीस सांगितले आणि सोसायटीने त्याप्रमाणे शेअर सर्टिफिकेट व मेंटेनस पावतीवर आईचे नाव चढविले
    यानंतर त्या घरावर आम्हा तीन भावांचा काही हक्क असू शकतो काय?

  26. Hello,

    Thank for the detail explanation of this topic.
    I have purchased old flat in dombivli, Kalyan. from its second owner.
    Now i want to transfer share certificate on my name, i have ask to society and they ask me to submit some forms. Can you please share me the details and form names which is required and from where i can get it.

    Please reply.

    Thank you.


  28. On the ground of hand return nomination note by shareholder of flat.
    Nomination can be write in Share certificate or only in nomination register?
    Can be both? e.g. in register and also, in Share certificate before death of shareholder of flat ?

  29. Dear Sir/Madam

    Would appreciate your Advice. We have just received a Probate of a property which was in the name of a deceased member of a family. Since i am a Executor appointed as per the will. I have submitted these papers to the society secretary to process the transfer of membership. But the society secretary tries to delay the process stating that the property is under redevelopment process so he is not able to get the Society members or he is not able to talk to the Redeveloper for clearance of dues. I have infact told him atleast transfer the Membership and alter the same in the Share Certificate which is reluctant.

    Can you please advise me as per MCS Act in how many days the Society have to transfer the Membership in my name after receiving Probate Orders. If not done what should be my next step of action with the society?

    Your advise would be highly appreciated.

  30. Hi need advice,
    Original flat was on mother’s name,she expired in 2006,flat got transfered to father n he nominated me as in 2015 he want to transfer this flat to my as originally flat was on my mother’s name do I require to provide No objection certificate from my sister?

  31. I have a flat in Badlapur & Thane my mom expired & the Thane flat has a nomination of me & my younger bro whereas the Vasai Flat has no nomination. My brother is staying in Badlapur Flat where as im staying on rent in Andheri now after my mom’s death I wanted to shift to Thane to our flat as it is expensive for me to stay on rent so I approached my brother for NOC to shift into the flat but it can still remain on both our names but he is not giving NOC & Society is not allowing me to carry out any rennovation work or stay in the Flat without my Brothers NOC whereas my bother is cooly staying in the Vasai Flat whereas im slogging and paying heavy rent to stay in Andheri, can you advice me on what legal steps to be taken against society for stopping me from staying & doing the renovation work.

  32. pls let us know if a member of society died without leaving nomination in the society and his wife claim for N.O.C obtain from society. then what is the role of society and how can society help her in this matter.

  33. Could you help me in resolving a query on nomination law. A member has nominated his wife and son as nominees. The nominee i.e. wife had expired years back and the member didn’t change the nomination form. The member recently expired so what shall be status of the nomination as one nominee had expired before the nominator. Should the society transfer the shares of the society in the other nominee or add the legal heirs of the earlier nominee who expired.

  34. After my father’s death share certificate (SRA) transfer name my mother now she wants to sale the property and 10 yrs already completed the society.The members told they does not give N.O.C for sale until 365 days from transfer the name of my mother.pls any one sugest me.Samadhan Parkar 9821393108

  35. ours is a registered co op hsg society in thane distt.iam the chairman of the our society one of lady member has made nomination in the names of her two nephews. the member died some 10 years back. no nominee has turned out for claims. now one of the nephew is dead leaving behind four sons. the son of other nephew wants the share. certificate to be transferred in his name. can you suggest how to divolve this property amongst the succesors . society has never seen any of these succesors previously.the new memeber claims that there will be no objection from the other living members of the familyplease suggest how to deal in such a case and what are the papers that society should ask fortransfer of this flat

    • If the managing committee members are not convinced by the legal heirs, then it is always advisable to insist on the succession certificate which the legal heirs have to obtain from the High Court. Once the certificate is obtained the society office bearers shall be secured in transferring the flat.

  36. Sir,

    I am a resident staying at DURGAMATTA (SRA) C.H.S. room no 202. A.V.Nagwekar Marg Old Prabhadevi Mumbai 400025.I have one SRA room there , room was earlier on my father’s name. we have bought prior 2010. my fathers death 2009 we have transferred the room to my mother name.
    Please help me in knowing the legal things & also let me know whether i will get the room or not as per SRA scheme.
    We have all the papers of room & also releated to transfer



  37. In our CHS we have a unique case, A flat was allotted by builder and purchaser never applied for membership of society, to make thing complicated he died without making will or any nomination. A legal heir is claiming the flat, what need to be done and what documents are required to admit the legal heir a member.

    • In my opinion if the builder has executed any agreement with the member or a allotment letter. Based on the registered agreement the society can take on record the legal heirs as members of the society, by putting a notice in two newspaper inviting any claims. If the society isnt convinced by the list of legal heirs representing the person who expired then the society should insist on the succession certificate.
      To register the legal heir of the person who hasn’t registered himself with the society, the society should insist on the registered agreement to prove the authencity.

  38. Sir,
    My mother is 80 yrs old with 4 children and can not walk and sign nomination form due to her illness. In this case, what is the procedure as per By-Laws to submit nomination form in the name of 4 children to Society.

  39. My mother expired nominating five of us sons in the plot owner society. First nominee has applied for nominee membership and furnished an indemnity bond. 1] The society is insisting that all the nominees sign the indemnity bond. 2] What if one nominee is not willing to sign the bond ? 3] Is a NOC required / necessary form the unwilling nominee ? Thanks,

    With Regards/

    • If there are more nominees than one, the society has to transfer the shares either in all the nominees name or in the name of any nominee provided all the nominees mentioned in the nomination form has to give their consent for the same. Without the consent or No Objection form the nominees the society cannot transfer the shares in the single nominee name.

  40. Dear Sir, Thanks for explanation of court s judgement ( ref source cutesy – Adv San Jay Jan chan )
    May we get the entire case with details and the judgement ? How ? Pl help in providing relaxant link.
    Thank you once again.

  41. Dear Sir, We have a flat at Ghatkopar west, Mumbai. The member , my mother died in the yr 2014.Prior to her death she has nominated me her son at first serial no with 50% share and my sister at second serial no with 50% share.My sister died in 2010 prior to my Mother s death and the Nomination never changed by the member till her death.
    My mother, the member , made a declaration in the prescribed Nomination form that after her death the share and interest should be transferred to me ,the first named nominee.
    With the referred declaration s backing and the fact of other nominee has expired, I made an application as if single nominee .
    The relevant forms mentioned in bye law hand book were filled in along with Indemnity Bond.
    Meanwhile, my sister s elder son has flashed a letter to the Society ( not to me ) requesting them to put his and his brother s name as Nominees.
    The Society is now consider this letter ( a letter and not a legal notice confirming the genuinely ) as An Objection and asking me to
    either ( I ) make a joint application with my relatives ,
    or ( ii ) produce a Succession Certificate from the Court.
    My queris —
    ( a ) Being a Nominated member am I required to produce Succession Certificate ?
    ( b ) As per the relaxant section of bye laws am I not entitled to acquire the ownership ?
    ( c ) Is it not Legal and Logical that the Succession Certificate if at all required to be produced is by my relatives for confirmation of their legal rights ?
    ( d ) Let me clear here that I am ready to give the share to my sister s heirs as per the normal succession law and I have discussed this issue with them prior to the submission of my application.The arrangement of Notarised Agreement was also made in the past with their cost. However, all of a sudden the flashed letter to the Society.
    I am still ready to follow the normal Succession Law and pay all the dues to both of them on the occasion of gains from the flat in future.
    ( e ) Is Nomination is treated as Will and is it binding to continue Sister s sons in Nomination after her death ?
    Pl help.

  42. My father had a flat in goregaon. He passed away in 2003 and the same was transferred to my mother who passed away in 2005. The flat was then transferred in joint names of my eldest and youngest sisters who are unmarried with me and my brother as nominees. My eldest sister passed away in January this year. Will my younger sister be the owner of the flat automatically? Can the flat be transferred to the three of us as joint owners? Please advise

  43. Man dies without having nominee. Society secretary has issued transfer of shares in wife’s name signed it and has given registration number. One member of the society has also signed the document. My concern is that there is space for the chairman to sign the document however the secretary says its not required. Will there be problem in future because of no signature of the chairman?

  44. My father had a flat in a Co-opertive Housing Society. My father expired this January. He had nominated me , and accordingly necessary documents, i.e Death Certificate, request letter to Society to transfer the flat to my name was submitted to the Society Chairman and the same has been reflected in the Share Certificate. I understand, that even though on the share certificate the ownership of the flat is registered in my name, i am only a Trustee for this flat, and not yet the complete owner. i.e. If and when i decide to sell this flat, i will not be able to sell this flat. The society informed me that i will have to complete a procedure known as a “Release Date” with the assistance of a lawyer. I have 2 sisters, and i am the only son. Can you kindly explain what this Release Date means, to complete the transfer of ownership of flat from a trustee to a owner.. Thank you, Regards

  45. Hi, We are having flat in thane and my father and I am the share holders. My father is live and wants to transfer his share in my name. When I raised this with society they want NoCs from my brother and sister and also affidavit from my father that I am the only child.

    Could you help is society demand is right

    • While your father is alive, he can what ever he wants with the property. Just because you too are a joint shreholder in the society doesnt mean you own the property jointly. Just by transfer shares in your name doesn’t make you a property owner and only property owners can be society members.

      However your father can execute a gift deed in your name and have your brothers sign as confirming parties to the same. But this gift deed will have to be registered and a nominal stamp duty to be paid.

      After this the entire property will be in your name. Needless to say you can tgen have the shares transferes in full to your name in society record.

  46. If the owner is decreased and he appointed 2 nominees where as 1nominee his wife who is alive and other 1is his son who is no more than…in this case…who will be the beneficial of share certificate…plz rply

  47. My Son dead in the month of December, i purchased a flat on his name , now i want to make nominee to my wife is it possible or please explain how to proceed to transfer the flat from deceased my son name to my wife name,

  48. Hello Sir: i had purchase property in partnership with my brother in 1978. I settled in USA and all my business was handled by my partner brother including my share of society”s monthly dues of my share. He died in 2004 and society issued share certificate only on my brother’s name leaving me nothing. After that all 100% of share was transfer to his wife. I did not know any thing until i visited to India during march/April 2019. I send a letter to society chairman and secretary but no response to my notice. I have a copy of original contract of 1978 showing as i am a 50% partner in the property. This is documented in section II of govt. record.
    Can you provide me direction and help what do I need to do to get my share of 50%. share documents as well as my name on property as partner. Thank you

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