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SLN (Partner)     28 June 2015

Indemnity bond - co-operative hsg soc.

Dear Experts

Kindly guide me wrt:

A member in my co-op hsg soc. was a joint owner with his mother. His mother passed away 11 yrs ago. Her will was not probated. She had filed a nomination with the Society in favour of her son, his wife and their minor child. When the Son applied for membership, he submitted an Indemnity Bond on behalf of his wife and his minor child, naming him as the principal Nominee. He has not submitted any Indemnity Bond in his personal capacity.

My query:

a. The Hon Secretary insists that an Indemnity Bond must be given by the Son, to safeguard the Society from any claims by any legal heir/representative.

b. The son is adamant that he will not furnish the Indemnity Bond. Moreover since this is 11yrs old, and the then Managing Committee have transferred the flat 100% in his name, he states his Tile of Ownership is Bonafide.

Kindly advice. Need your guidance at the earliest.

Thanks and regards


 3 Replies

Leslie Almeida (social worker)     28 June 2015

In Joint Property when one of the Joint persons dies property automatically vest with the other joint member as survivor , there is no 50/50 , so the society is absolutely right in doing what they did



SLN (Partner)     28 June 2015

Dear Leslie Almeida

Thank you for your prompt reply.

My concern is as per the Co-operative Housing Society Model Bye laws, a Nominee is only in Trust of the share. Any legal heir/representative can come forward and claim their share. To avoid this, a society asks an Indemnity Bond from the Nominee, who is to get 100% membership, so that they are not liable in any way if and when any legal heir claims their right.

In this case the deceased Lady has 2 sons. The son who stayed with her is adamant and not furnishing the Indemnity Bond.

Kindly guide of the Society is right in asking for the Indemnity Bond, in light that the mother has another son, a legal heir. The Managing committe of 11 years where unaware of such legal stipules and erred in their judgement while transferring the membership to the son in entirety. Now if any legal heir files a case against the past Managing Committee, each such committee member can be personally be held responsible.


Please guide..

Leslie Almeida (social worker)     29 June 2015

My Dear,

Pls understand when share is jointly held and one person dies automatically it vest with

the other joint holder, as he is the survivor, dont feel bad, i know your feeling that you do not have anything. Your Mother was wrong in make a nomination, this will not count in any court of Law

I agree Nomination is only a trustee however if you mother did  hold the flat alone in her name

then only nomination will come into play and if no will then sucession certificate from High court

I once again say since it is joint property your mother cannot make a nomination

the nomination should be jointly made. I hope i have clarified your doubt, I am not a Lawyer

But have great experience in property matters.. 


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