Section 154B-13: Transfer of Interest on Death of a Member  

This provision under the Maharashtra Cooperative Societies Act, 1960, deals with the transfer of the share or interest in a society when a member passes away. It outlines the process and rules to ensure a smooth transition of membership rights to legal heirs, nominees, or successors.

Key Provisions of Section 154B-13:

1. Nomination: 
    - If the deceased member has made a valid nomination, the society is required to transfer the share or interest of the deceased member to the nominee.  
    - The nominee becomes a provisional member and enjoys membership rights until the legal heirs settle the succession among themselves.
2. No Nomination: 
    - In the absence of a valid nomination, the society will require:
       - A Succession Certificate,  
       - A Probate of Will, or  
       - A Letter of Administration from the legal heirs to transfer the membership.
3. Role of the Society:
    - The society must verify the nomination or legal heir documents before transferring the membership.  
    - It acts only as a custodian and is not responsible for resolving disputes among heirs.
4. Provisional Membership:
   - The nominee or heir receiving the share transfer is considered a provisional member.  
   - Full membership is granted only when ownership of the flat or property is legally transferred.
5. Compliance with Bye-Laws:
   - The society must adhere to its bye-laws and the Maharashtra Cooperative Societies Rules in executing the transfer.  
   - Typically, a nominee or legal heir must submit an application along with the prescribed documents and an indemnity bond.
6. Protection of Society:
    - The society is indemnified from disputes among legal heirs if it acts in good faith based on the nomination or legal documents provided.

Steps for Transfer of Interest After Death of a Member:

1. Submission of Documents: 
   - Death Certificate of the member.
   - Nomination form (if available) or legal heirship documents.
   - Application from the nominee or legal heir for the transfer of membership.
2. Verification:
   - The society verifies the submitted documents and ensures compliance with the law.
3. Execution of Indemnity Bond:
   - The nominee or heir executes an indemnity bond indemnifying the society against future claims.
4. Approval:
   - The managing committee approves the transfer as per the society's by-laws.
5. Updating Records:
   - The society updates its records and issues a new share certificate in the name of the nominee or legal heir.
    

Conclusion:
Section 154B-13 ensures that the transfer of interest in a cooperative housing society upon the death of a member is conducted in an orderly and legally compliant manner, protecting both the society and the legal heirs.

Section 154B-13: Transfer of Interest on Death of a Member