Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 11 June 2018

Ownership through nomination

Of late there are many judgments saying that a nominee is not absolute owner of the property to which he was nominated. Nomination facility is there under various Acts covering life insurance, bank deposits, company shares, co-operative society flats etc.

One of my relatives is owner of a co-operative society flat in Mumbai. He acquired the flat as nominee of his father, who died in 1962 or thereabout. In 1962 there was neither stamp duty nor registration for transfer of co-operative society flats. The record of ownership of flats was solely in the books of the Society and in the share certificate related to the flat. The identity of the flat is not given in the share certificate. My questions are as below:

Was probate necessary as a flat was not considered an immovable property?
Will the owner of the flat as in the books of the Society, be entitled to ownership due to adverse possession for more than 12 years under the Limitation Act, 1963?

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5 Replies

Kumar Doab (FIN) 11 June 2018

Did owner/title holder leave a valid WILL? Your query does not mention about WILL so probate may be ruled out. On what grounds adverse possession may be contemplated! Did Nominee act as per MCS Act;92(b)….. You are aware this clause and its function.

Kumar Doab (FIN) 11 June 2018

The old arrangement was to save stamp duty.

Perspective: Check LOCALY from LOCAL counsel if suit jointly by possessor, society, for consent decree is possible. If other legal heirs have not come forward thee many years they may remain Ex.Party in the suit.

It is felt that in such case stamp duty may be levied.

Kumar Doab (FIN) 11 June 2018

The LCI Experts that are well versed with society matters e.g;

Mr. Hemant Agarwal, Mr. Kishore Mehta,Mr. M.V.Gupta that may be at your location can help you...

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 12 June 2018

No will was made by the deceased. No succession certificate was obtained as it was not called for by the Society. In a hypothetical case if there was a will in 1962 was a probate necessary as a flat was not an immovable property under law in 1962? No claim was made by other heirs. They knew for family reasons the property was to go to the nominee only. Now all the Class I heirs are dead.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 12 June 2018

Co-operative Housing Societies and nominations are almost a 100 years old in Maharashtra (previously Bombay). Flats were transferred to nominees and such transfers were final all these years. Is there a pre-1980 judgment saying that a nominee is not an absolute owner?