What a nominee should do to become a member of a society.

By K.C. Vajifdar .

Posted on 11th April 2001

How is a Nomination name in a Housing Co-operative Society ? If the Society has adopted the Old Bye-laws , It states that a member may by writing under his or her hand and deposited with the Society during his or her life time or by a Statement made in any books kept for the same, nominee any person to whom under Section 30 of the Maharashtra Co-operative Society’s Act, the interest of the member is specified and on his or her death such shares shall be transferred to the name of the nominee .

It is to be noted that a Nomination made a member can be revoked or varied , by the member any number of times . The Society has no right to ask the member as to why a Nomination is being changed by him or her. In this connection some of the societies become adamant and do not change the Nomination pointing out Section 29(2) of the Maharashtra Co-operative Society’s Act simply states that the member shall not transfer any share held by him unless he has held it for a period of one year. Now this is not the transfer of shares or share certificates . This is merely an intimation given to the society , that incase of his or he demise the share certificate should be transferred in the name of the nominee.

Thus a member of the Society has very right to change the share certificate, as many times as he wants during his lifetime.

Now what action should the society take when the nominee applies for the membership of the Society ? First of all , it is absolutely essential for the Society , to call upon such a nominee to furnish a certificate. This is absolutely essential . Thereafter nominee should be called upon to produce the original share certificate .

Incase the nominee has lost the original share certificate , or the said share certificate, or the said share certificate has been misplaced, then the nominee should apply to the Society for issuing a duplicate share certificate by following the formalities for the same .

Thereafter the Society should call upon the nominee to pay up the outstanding dues of the deceased member A nominee cannot raise any dispute about the same, even if there was a dispute about the payment of the said amount between the deceased member and the society . The nominee is bound to pay up the entire amount as due and demanded by the Society , before he is admitted as the member of the Society.

Thereafter the nominee should pay the entrance fees of Rs.10 to the society and then make an application for the membership of the Society . At this point of time the Society should call upon the nominee to give a declaration in the prescribed Form No-24, to the effect that he does not hold any vacant land or a land with a building in any Urban Agglomeration specified under the Urban Land Ceiling and Regulation Act 197, which exceeds 500 sq. mtrs.

By following the above named procedure a nominee can be admitted as the member of the Society incase of the demise of the original member .

Question & Answers

I had taken the premises on Care Taken basis from a tenant for three years , who was my friend as the tenant had gone out of India ,due to his service . The tenant is working in a Bank . I have paid the rent for the last 2 ½ years by cash which has been accepted by the Rent Collector tell me that he can transfer the rent receipt in my name if I pay him a certain amount of money . Is it worthwhile doing so ? Can the tenant who is at present out of India after coming to Bombay after six months once again claim tenancy rights ? I have no where to go and reside . I really do not know what to do ? I therefore seek your advise in the matter ? Kindly advise .

Baffled care taker-Bandra , How can you think of letting down your friend , who has trusted you and given his premises to you of faith as care taker to look after the same during his temporary absence from Bombay . From your letter it is clear that you are merely paying rent of the premises and the tenant is not making any profit out of it . It appears tome that the Rent Collector is taking you for a ride. He has no right to transfer the tenancy receipt in your name unless the tenancy rights are surrendered by the main tenant . So do not fall into this trap and do not think of deceiving your friend who has trusted you to keep his premises intact by appointing you as the Care taker. After your friend returns to Bombay if he does not wish to keep you with him in the said premises , you would have necessarily to look out for some other premises .

I am a member of a Housing Co-operation Society . I am earning a very modest salary . Every now and then the Society is demanding monies for the repairs of the building . I simply cannot afford it. Is it true that the Society can demand monies for the repairs to the building only once in three years ? Is it true that if a member does not pay monies for the

repairs as per the resolution passed by the Special General Meeting then the interest at the rate of 21% cannot be recovered from him ? Is it true that only those defaulters who not pay maintenance charges have to pay interest at the rate of 21%since our society had adopted the Model Bye-laws ? Could you kindly enlighten me in this matter ?

L.U. Nayak .

Mr. Nayak , you must remember that now you are a member of a Housing Co operative Society and such you are a co-owner of the building . If the building requires , it is your duty to pay your share of the same . It is not true at all that a society has a right to demand monies for the repairs of the building only once in three years . It is also not true that if a member does not pay the repair charges then the Society cannot recover 21% interest on the amount not paid for the repair charges . Since your Society has adopted the Model Bye-laws , it can recover 21% interest on the maintenance charges if not paid as well as contribution for repairs .

I have given my ownership flat on Leave and Licence basis for residential purposes merely for 11 months . The Licence period would be over next month . Now the Licensee has started writing to me letters after letters that he does not get adequate water in the building and infact has to buy water from outside . He has also complained about the resolution of the Society to keep the lift closed at certain hours . He has threatened me that I would have to pay him adequate compensation for lack of these facilities if I do not renew the Leave and Licence Agreement on the same terms and conditions after the licence period is over? I am perplexed and even do not get proper sleep at night . I want my flat back under any circumstances, as I do not wish to renew the Leave and Licence agreement . what do I do ?

Frightened Licenser

On the face of it , it appears to me that your Licensee is acting smart , in order to renew the Leave and Licence agreement for further period on the same terms and conditions. You are not responsible if due to certain reasons or due to less pressure your licensee does not get adequate water. You are also not responsible for the payment to your Licensee, if he has to buy water from outside . The Society where you are a member have passed a resolution to keep the lift closed for certain hours, inorder to keep it in proper condition and your Licensee is bound to respect the resolution of the Society . He has no right to complain about the same. Since you have given your flat on Leave and License basis for residential purposes if your Licensee were not quiet after the licence period is over , you would have to approach the competent Authority who would order your Licensee to pay double the licensee to pay double evicted . Moreover you would get a speedy disposal of the application . So do not pass sleepless nights as you would certainly get back your flat.