Transferring membership rights in a cooperative housing society can be challenging after a member dies. Societies often demand succession certificates, family arrangement or heirship certificates under section 154B-13. The key issue before the Hon’ble Bombay High Court1 was whether a relinquishment deed by two adult children to their mother constitutes a “family arrangement” under the Maharashtra Co-Operative Societies Act
Facts of the Case:
The Petitioner is a Co-operative Housing Society. Respondent No. 3 is the widow of a deceased member. After her husband’s death, she applied for membership and received provisional status.
The deceased member left behind a widow and two adult children. The adult children executed a deed of relinquishment in favor of Respondent No. 3. It was argued that this arrangement shall qualify as a family arrangement. The society did not grant her full membership. Later, she filed an application with the Deputy Registrar. The Deputy Registrar approved her application, directing the society to admit her as a member and issue a share certificate.
Arguments:
The society challenged this order but lost in revision. The Petitioner now files a petition challenging the above decision. The Petitioner argues that “family arrangement” applies only to Hindu Undivided Families (HUF). The society argues that a single heir of the deceased member must obtain a succession certificate. Therefore, the Respondent, as the sole heir, is obligated to secure this certificate to transfer the deceased member’s interest.
On the contrary, the Respondent argued against requiring a succession certificate for membership transfer. He stated that a deceased member’s interest should not depend solely on succession certificate. This requirement should apply only in cases of disputes over rightful heirs. Such disputes arise when there are multiple claimants for the deceased member’s interest.
Analysis:
For reference Section 154B-13 is reproduced below:
154B-13. Transfer of interest on death of a Member On the death of a Member of a society, the society shall transfer share, right, title and interest in the property of the deceased Member in the society to a person or persons on the basis of testamentary
documents or succession certificate or legal heirship certificate or document of family arrangement executed by the persons, who are entitled to inherit the property of the deceased Member or to a person duly nominated in accordance with the rules:
Provided that, society shall admit nominee as a provisional Member after the death of a Member till legal heir or heirs or a person who is entitled to the flat and shares in accordance with succession law or under will or testamentary document are admitted as Member in place of such deceased Member:
Provided further that, if no person has been so nominated, society shall admit such person as provisional Member as may appear to the committee to be the heir or legal representative of the deceased Member in the manner as may be prescribed.
The Hon’ble Court stated that upon a member’s death, the society must transfer the share, rights, title, and interest in the property to the rightful heir. This transfer can occur based on testamentary documents, a succession certificate, a legal heirship certificate, or a family arrangement document executed by those entitled to inherit the deceased member’s property.
The Hon’ble Court observed that the Act does not define “family” or “family arrangement.” Therefore, it is essential to consider their general meanings. A family is typically a group of individuals connected by marriage, blood, or adoption, interpreted through relevant personal laws. In this case, the deceased left behind Respondent No. 3 (his widow) and two children, forming a family unit. The children executed a deed of relinquishment in favor of their mother, Respondent No. 3. This clearly establishes a family arrangement among the deceased’s heirs concerning the deceased member’s interest in the society, as defined by Section 154B-13 of the Act.
HELD:
The Hon’ble Court found no merit in the Petitioner’s argument that family arrangements apply only to Hindu Undivided Families (HUF). This interpretation is unacceptable, as it would introduce elements not intended by the legislature. The law clearly states that no part of a statute can be altered or substituted. The Court clarified that if multiple heirs of a deceased member enter into a family arrangement, this is sufficient for the Co-operative Society to transfer membership to one individual.
The Hon’ble Court noted that the deceased left behind three heirs, including Respondent No. 3. The other two heirs relinquished their rights in favor of Respondent No. 3. Therefore, the Court found no reason to reject this relinquishment as a family arrangement under section 154B-13. Given these facts, the Court determined that there was no error in the findings made by the lower authorities or in the contested orders.
- Bima Nagar Co-Operative Housing Society Limited v. The Divisional Joint Registrar Co- Operative Soc. And Ors, (Bombay High Ct. 2024). ↩︎
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