Shares transfer to Nominee
Member of coop society dies. Legal Heir 1 is nominee. Legal heir 2 claiming succession rights, matter not yet in court. Can society transfer shares to nominee, as matter of operating convenience? I know such a judgment passed in favour, in 2009. Has any judgment been passed on contrary ?
Asked in Property Law from Pune, Maharashtra
1) nominee is only trustee of legal heirs
2) society can transfer flat in name of nominee . Ask nominee to execute indemnity bond to indemnify society against any claims made if any
3) nominee cannot sell flat without consent of other legal heirs
Since there is nomination on favour of one of the legal heirs the society can transfer the share certificate to him on an application made by him to this effect.
The nominee shall be a trustee to receive and disburse the property to the legal heirs of the deceased, the nominee shall not become the owner of the property on such occasions.
If the society transfers the shares in favor of the nominee, then the other legal heirs may challenge the same in the court of law.
In case of a flat, nomination does not confer any permanent right upon the nominee.
Nomination is the process whereby a person is appointed to hold and take care of the flat after the death of the owner of the flat.
The nominee will only hold the flat of the deceased as a trustee and will be legally bound to transfer it as per the provisions of the Will or the legal heirs as per the applicable laws of succession.
From the time of death until transfer of rights, there is a gap created as to who is the owner of the flat.
A nomination aims to fill this gap. It seeks to avoid any confusion in cases where a Will has not been executed or where there are disputes between heirs.