Can Society insist on Succession Certificate for Transfer and Sale of a Flat and Share Certificate attached thereto?
Is it mandatory for the daughters of Hindu deceased died intestate to obtain Succession Certificate? Ans: Negative What is the status of nominee who is now member of the Society in absence of Succession Certificate? Ans: Legal Heir and Property vest in them immediately on death of testator. The facts: One deceased was Hindu Female and member of Co-operative Housing Society Limited, situate in Mumbai. The said deceased was holding Share Certificate alongwith 5 fully paid up shares and pursuant thereto she was allotted Flat in the said Society. The said deceased had filed Form of Nomination under Rule 25 of the Maharashtra Co-operative Societies Rules 1961, whereby the said deceased nominated 4 daughters as her nominee as per the share of each nominee percentage described in the said Form filed with the Society. The said nomination was registered by the Society. The said Member died leaving behind 4 daughters as the only heirs and legal representatives. The daughters after the demise of the said member being their mother jointly applied to the Society to enter their names as members. As per the directions of the Society, the heirs and legal representatives invited adverse claim by giving Public Notice and Advocate issued a legal opinion for transfer of flat to the nominees and opined that since there is no adverse claim on the shares, the same can be transmitted and transferred to the legal heirs of the deceased. In the meantime, subject to opinion the Society transferred the said Share Certificate. The nominees also executed Indemnity cum Declaration Bond to the Society. Hence, all the legal formalities for transfer of the said Share Certificate in the name of the nominee was complied in accordance with law. Thereafter, as the daughters became regular members of the Society they gave notice to the Society for sale of the said Share Certificate giving first preference of purchase to the current existing members. One of the existing members agreed to purchase the said flat. However, the Society insisted on obtaining Succession Certificate. The question now arise is whether in absence of Will of a Hindu deceased is it mandatory for Hindu daughters to obtain Letters of Administration or Succession Certificate. Writer would like to draw your attention to the legal provisions of Indian Succession Act Part VIII under Chapter heading ‘Representative title to property of deceased on succession’. Sections 211 and 212 of the Indian Succession Act 1925 thus, read as under:- “211. Character and property of executor or administrator as such. – (1) The executor or administrator, as the case may be, of a deceased person is his legal representative for all purposes, and all the property of the deceased person vests in him as such. (2) When the deceased was a Hindu, Muhammadan, Buddhist, [Sikh, Jaina or Parsi] or an exempted person, nothing herein contained shall vest in an executor or administrator any property of the deceased person which would otherwise or administrator any property of the deceased person which would otherwise have passed the survivorship to some other person. 212. Right to intestate’s property. – (1) No right to any part […]Read more
In a recent matter the Queriest has raised following queries:- Whether request for a Special General Meeting is prerogative of Society Members only? Can Chairman OR management committee call for a Special General Meeting at any time or several times in a year for getting approval of a Agenda prepared by them ((not against a requisition from members) ? Can Chairman or Management Committee call for a Special General Meeting against a requisition received from society members, signed by only 5 members? Is it that Chairman or management committee can call Special General Meeting ONLY AND ONLY when they receive a Requisition signed by 20% members of society, OR a request letter from Registering Authority OR a request letter from Housing federation and such SPGM to be called by Chairman or managing committee at any time within one month from the date of such Requisition or letter? Can Chairman OR Managing Committee declare the “Decisions made in a Special General Meeting ” as invalid? Under what circumstances a Conducted Special General Meeting can be declared as invalid by Chairman OR Managing Committee? To understand questions we need to know relevant provisions of law. The Maharashtra Co-operative Society Act,1960 is the parent law which regulates the Co-operative Society. SPECIAL GENERAL MEETING. (1) A special general meeting may be called at any time by the Chairman special or by a majority of the committee and shall be called within one month— (i) on a requisition in writing of one-fifth of the members of the society of members the number of which is specified in the by-laws for the purpose, whichever is lower, or (ii) at the instance of the Registrar, or (iii) in the case of a society, which is a member of a federal society, at the instance of the committee of such federal society. (2) Where any officer or a member of the committee, whose duty it was to call such meeting, without reasonable excuse, fails to call such meeting, the Registrar may by order declare such officer or member disqualified, for being a member of the committee for such period not exceeding three years, as he may specify in such order; and if the officer is a servant of the society, he may impose on him a penalty not exceeding one hundred rupees. Before making an order under this sub-section, the Registrar shall give, or cause to be given, a reasonable opportunity to the person concerned of showing cause against the action proposed to be taken in regard to him. (3) If a special general meeting of a society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorised by him in this behalf, shall have power to call such meeting, and that meeting shall be deemed to be a meeting duly called by the committee. (4) The Registrar shall have power to order that the expenditure incurred in calling a meeting under subsection (3) shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Registrar, were […]Read more