A very interesting case where the deceased (for simplicity's sake let’s name him “MK”) was the owner of a flat in a cooperative housing society in Mumbai. During his lifetime, MK had registered a nomination in his grandson's name (“VK”). The entry of nomination was recorded in the society register. The owner MK died intestate (without a will) leaving behind his two sons (“RK and KK”) and grandson VK whose father was the predeceased son of owner MK.
The son RK took a no objection cum declaration from his brother KK after their father MK’s demise, and in this way, he claimed a 2/3rd share and interest in the flat and sought transfer of a proportionate interest in the flat and claimed of the housing society. His application was rejected by the society based on the Hon’ble Apex Court judgement in the case of Indrani Wahi Vs. Registrar of Cooperative Societies (Civil Appeal 4930/2006) held that the Cooperative Society is bound by a valid nomination; however, it does not mean that nominee becomes the property owner, but that he holds the property in trust for the legal heirs.
The Court directed the Society
to transfer the flat to the grandson VK in his capacity as nominee and admit
him as a provisional member till the time RK was able to obtain a succession
certificate or legal heirship certificate or testamentary document, as the case
may be. A nominee is a trustee who cannot acquire ownership rights in a cooperative housing society flat by nomination.
