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Section 154B-13 of the MC Societies Act – Mandatory Duty of the Housing Society to transfer shares and admit nominated person as Member

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The father of the respondent no.3 was member of the society.  After his death, is wife was admitted as member and after her death on 29.7.2007, the respondent no.3 being her son and nominee, applied on 2.9.2016 for transfer of shares.

On 26.4.2018, the petitioner society admitted the respondent no.3 as nominal member.  

On 6.7.2018, the respondent no.3 applied for full membership.

The petitioner contends that the said unit is used as premises for godown or office.  As per the lease conditions and the bye-laws, the question of lawful use of the premises is involved in grant of membership to the respondent no.3.

HELD that the scheme of Section 154B-13 is clear that the Housing Society cannot keep the estate of a deceased member in a state of suspension.  It is under a statutory duty to transfer the share, right, title and interest to the person, who, in the eye of law, represents the estate, either as nominee or as heir under the law of succession.

Once death of member occurs, the Society’s discretion is significantly reduced.   The Society cannot choose among claimants or impose additional eligibility norms not found in the statute.  The society is obliged to recognize the person who represents the estate of deceased member.   The purpose is to avoid uncertainty in the management of the property of a deceased member.

Father and Mother were members of the Housing Society – Objection to the enrolment of son on the alleged ground of legal use of the premises – Illegal

The Petitioner housing society cannot defeat the statutory command by raising, at this late stage, an object to the nature of the premises, when it had itself admitted the predecessors of respondent no.3 as member on the very same basis.   Any alleged misuse of the premises can be dealt with independently in accordance with law but it is not a ground to refuse membership in the face of Section 154B-13.

Judgment dated 9.12.2025 of the High Court of Bombay in Writ Petition No.7834 of 2025 of  Foreshore Cooperative Housing Society  Vs.  Divisional Joint Registrar of Cooperative Society and others

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