Saturday, 30 April 2016

Transfer of society share

The Supreme Court in Indrani Wahi vs. Registrar of Coop. Societies & Ors has held that that transfer of share or interest in a cooperative society, based on a nomination in favour of the nominee, is binding on the said society. Justices J.S. Khehar and C. Nagappan allowed the appeal filed by Indrani Wahi, and directed the society to transfer the share or interest of the society in her favour. Indrani Wahi had challenged the decisions of the Registrar of Cooperative Societies regarding non-approval of her membership in the Sarobar-View Co-operative Housing Society Limited on the ground that the nomination made by her late father of the petitioner was not in terms of Section 79 of the West Bengal Co-operative Societies Act, 1983 and Rule 127 of the West Bengal Co-operative Societies Rules, 1987. The Single Bench allowed the Writ petition holding that the provisions of the Act did not put any restriction on the major daughters while defining family by recognising and/or referring to their marital status. However, the Division Bench on Appeal preferred by her mother and brother, held that shares and interest can only be transferred by expressing consent of all the heirs.This order by the Division Bench was assailed before the Apex Court. The Bench referring to Usha Ranjan Bhattacharjee vs. Abinash Chandra Chakraborty a decision which was relied upon by the Division Bench of High Court, clarified “transfer of share or interest, based on a nomination under Section 79 in favour of the nominee, is with reference to the concerned Cooperative Society, and is binding on the said society. The Cooperative Society has no option whatsoever, except to transfer the membership in the name of the nominee, in consonance with Sections 79 and 80 of the 1983 Act (read with Rules 127 and 128 of the 1987 Rules). That, would have no relevance to the issue of title between the inheritors or successors to the property of the deceased.” Direct the society to transfer the share or interest of the society in favour of the appellant, the Court said that other members of the family is free to pursue his case of succession or inheritance.

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