Case Law Details
Cooperative Hsg. Society bound to transfer membership in the name of nominee but it is open to other family members to pursue case of succession or inheritance.
1. Biswa Ranjan Sengupta (hereinafter referred to as ‘the appellant’s father’), was admitted as a member of the Sarbar View Cooperative Housing Society Limited (hereinafter referred to as ‘the Cooperative Society’), against Flat No.4-RB 2/3, Purbachal Housing Estate, Phase-II, Sector-III, Salt Lake City, Kolkatta. He (Biswa Ranjan Sengupta) had married Parul Sengupta. Out of the above wedlock, there were two children – a daughter (Indrani Wahi) and a son (Dhruba Jyoti Sengupta). It is not a matter of dispute, that his (Biswa Ranjan Sengupta’s) membership of ‘the Cooperative Society’ had resulted in the allotment of the flat referred to hereinabove. Biswa Ranjan Sengupta recorded the name of the appellant – Indrani Wahi, in terms of the mandate contained in Section 79 of the West Bengal Cooperative Societies Act, 1983 (hereinafter referred to as ‘the 1983 Act’). Under Section 79, a member of ‘the Cooperative Society’ is required to nominate a person in whose favour ‘the Cooperative Society’ would dispose of the share or interest of the member “on his death”.
2. It is the case of the appellant before this Court, that her father – Biswa Ranjan Sengupta, lived under her exclusive care eversince March 2002, whereafter he died on 22.07.2003. It is also the case of the appellant, that neither the appellant’s mother nor her brother participated in the last rites of her father – Biswa Ranjan Sengupta. In our considered view, these facts are irrelevant for the adjudication of the present controversy. They are, however, being recorded herein, on account of the significance assigned to them, in the pleadings, and also during the course of hearing.
3. After the death of her father – Biswa Ranjan Sengupta, Indrani Wahi addressed a communication dated 05.08.2003 to the Secretary of ‘the Cooperative Society’, for entering her name in place of the name of her father, with reference to Flat No.4-RB 2/3, Purbachal Housing Estate, Phase-II, Sector-III, Salt Lake City, Kolkatta. The Managing Committee of the Housing Society passed a unanimous resolution on 15.08.2003, for transferring the membership of Biswa Ranjan Sengupta in ‘the Cooperative Society’ to the name of the appellant – Indrani Wahi.
4. It is the case of the appellant, that consequent upon the passing of the above resolution, she (Indrani Wahi) has been paying maintenance and other charges to the Society. It is also pointed out, that the Secretary of ‘the Cooperative Society’, through a covering letter dated 16.08.2003, sent all papers with reference to the transfer of the membership of ‘the Cooperative Society’ from the name of Biswa Ranjan Sengupta, to the name of Indrani Wahi, to the Deputy Registrar, Cooperative Societies. The papers dispatched, included the resolution of ‘the Cooperative Society’ referred to above.
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the MAHARASHTRA CO OPERATIVE SOCIETY ACT 1960 (MSC ACT1960) & NEW BYE LAWS ISSUED BY REGISTRAR SAYS THAT NOMINEE IS TRUSTEE AND NOT OWNER
Very comprehensive judgement of the SC that makes it clear in paras 12 and 20 of the article, that the nominee of a life insurance policy or the nominee of shares in a cooperative housing society shall, on the death of the insured person/shareholder, be entitled to have the amount paid/shares transferred to the nomine, but that the ownership of the policy amount/to the flat, is to be decided by the laws of succession applicable.
Thank you for posting this important judgement,