• 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
Religion: Hindu
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 
Ajay Sethi
Advocate, Mumbai
28583 Answers
1551 Consultations

5.0 on 5.0

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.
Ashish Davessar
Advocate, Jaipur
19896 Answers
520 Consultations

5.0 on 5.0

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.
T Kalaiselvan
Advocate, Vellore
18765 Answers
176 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
18765 Answers
176 Consultations

5.0 on 5.0

Ajay Sethi
Advocate, Mumbai
28583 Answers
1551 Consultations

5.0 on 5.0

Krishna Kishore Ganguly
Advocate, Kolkata
13962 Answers
309 Consultations

5.0 on 5.0

Ashish Davessar
Advocate, Jaipur
19896 Answers
520 Consultations

5.0 on 5.0

Devajyoti Barman
Advocate, Kolkata
7310 Answers
83 Consultations

4.9 on 5.0

Shivendra Pratap Singh
Advocate, Lucknow
3303 Answers
51 Consultations

4.9 on 5.0

Rajgopalan Sripathi
Advocate, Hyderabad
996 Answers
73 Consultations

5.0 on 5.0

Ajay N S
Advocate, Ernakulam
2070 Answers
24 Consultations

5.0 on 5.0

Shashidhar S. Sastry
Advocate, Bangalore
1338 Answers
75 Consultations

5.0 on 5.0

Kiran N. Murthy
Advocate, Bangalore
831 Answers
62 Consultations

5.0 on 5.0