cooperative society inheritance

Finance professional

we have a co-operative society which is registered under west bengal cooperative societies act. Few days ago, one of the members died and no nomination had been given by him in case of his death. Now share of the deceased member is to be transferred in the name of his wife and none of his children has any objection to that. Now there is unclarity as regard the procedure to be adopted for such transfer. Some lawyers says that such a claim should be supported by a letter of administration issued by a court while some says that a written declaration in an affidavit by the legal heirs and the acceptance of the same by the society in a board meeting will be sufficient.

Please guide.

 
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ha21@rediffmail.com Mumbai : 9820174108

1.  If the deceased member was goverened under the Hindu Succession Act, and has died without making a "will" or a "nomination" for his property THEN  "ALL" his legal heir's have an equal share in the property.  Tentatively, it would be highly safe for the society to transfer the membership in the name of all the immediate legal heirs of the decease member (i.e. mother + sons + daughters), to safeguard itself against possible future legal disputes.


2.  It would be unwise and legally fraught with future projected disputes, if the society transfer the property only in the name of the Mother, irrespective of the fact that all the other legal heirs are giving you an declaration cum affadavit (NOC) in favour of the mother.  The society gets embroiled in legal expenses at a latter date, due to the nuisance created by other legal heirs in future.


3.  Such declaration cum affadavit has hardly any legal value and can be changed & even  disclaimed by the other legal heirs.  In such scenario,  in legal terms, it is best that all the legal heirs file for Letter of Administration from the competent courts and file their declarations before the judge, who then may issue appropriate orders, which THEN the society may follow safely.


4.  The society managing committee is bound to protect interest of its members property and the safest way is to transfer membership of the immediate legal heirs, as explained above.


Keep Smiling .... Hemant Agarwal

 
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