Chapter VII: Membership, Nomination and Recording of Nomination

Bye-law 21. Classes of Members

The membership of the Society shall consist of the following classes only:—

(a)(i) Member A person admitted as a Member of the Society in accordance with the provisions of the Act, the Rules and these Bye-laws.

(b)(ii) Joint Member A person who jointly holds the shares and interest in the capital/property of the Society together with another Member, and whose name is entered jointly in the records of the Society in accordance with the Act, the Rules and these Bye-laws.

(c)(iii) Associate Member

A person admitted as an Associate Member in accordance with Section 154B-1(18)(a) of the Act, the Rules and these Bye-laws.

(d)(iv) Provisional Member A person admitted as a Provisional Member in accordance with Section 154B-1(18)(b) of the Act, the Rules and these Bye-laws.

Bye-law 22. Eligibility for Membership

A person shall be eligible for admission to membership of the Society only in accordance with the provisions of the Act, the Rules and these Bye-laws.

(a)(i) No person shall be admitted as a Member of the Society except a “person” as defined under Section 154B-1(20) of the Maharashtra Co-operative Societies Act, 1960.

(b)(ii) A minor or a person of unsound mind, inheriting the shares and interest of a deceased Member in the capital/property of the Society, or becoming entitled thereto under the provisions of the Act, may be admitted through his guardian or legal representative, subject to the provisions of the Act, the Rules and these Bye-laws.

(c)(iii) Admission of any person to membership, whether by allotment, transfer, succession, testamentary disposition, family arrangement or any other mode recognised by law, shall be subject to compliance with the provisions of the Act, the Rules and these Bye-laws.

(d)(iv) Where the land or building of the Society is held under lease, grant or allotment from the Government, Collector, MHADA, CIDCO, SRA, MMRDA or any other statutory or planning authority, admission to membership shall also be subject to compliance with the conditions of such lease, grant, allotment or applicable statutory provisions.

(e)(v) No person shall be admitted as a Member if such admission is prohibited under the Act, the Rules, any lawful order of the Competent Authority or any other law for the time being in force.

Bye-law 23. Conditions for Admission as Member

No person shall be admitted as a Member, other than an Associate Member or Provisional Member, of the Society unless—

(a)(i) an application for membership is made in writing in the prescribed form provided under these Bye-laws;

(b)(ii) the applicant subscribes to ten fully paid-up shares of the Society of the face value of ₹50/- each aggregating to ₹500/-, or such share capital as may be prescribed under the Act, the Rules or these Bye-laws, and pays the entrance fee of ₹500/-, as prescribed under these Bye-laws;

(c)(iii) the applicant submits a certified copy of a duly stamped and registered Agreement for Sale, Conveyance Deed, Assignment Deed, Gift Deed, Exchange Deed, Partition Deed, Release or Relinquishment Deed, Family Arrangement, Probate, Letters of Administration, Succession Certificate, Court Decree, Sale Certificate or any other document recognised under law, establishing title or interest in the flat/unit;

(d)(iv) the application is approved by the Committee in accordance with the provisions of the Act, the Rules and these Bye-laws;

(e)(v) the applicant complies with the provisions of the Act, the Rules, these Bye-laws and Government directions issued from time to time;

(f)(vi) where the applicant is a body or entity, the application is accompanied by a resolution authorising such body or entity to apply for membership of the Society;

(g)(vii) where prior approval or permission of the Government, Collector, MHADA, CIDCO, SRA, MMRDA or any other competent authority is required under any law, lease, grant or allotment, such approval or permission has been obtained before admission to membership;

(h)(viii) such other conditions, as may be prescribed under the Act, the Rules and these Bye-laws, are fulfilled.

Bye-law 24. Joint Member

(a)(i) Where the shares, right, title and interest in the flat/unit are held jointly by two or more persons, they may apply for admission as Joint Members of the Society in the prescribed form.

(b)(ii) The person whose name appears first in the registered document of title and in the Share Certificate shall be deemed to be the Member of the Society for all purposes under the Act, the Rules and these Bye-laws.

(c)(iii) The remaining joint holder or holders may be admitted as Joint Members of the Society.

(d)(iv) A Joint Member shall exercise such rights and discharge such duties and obligations as are provided under the Act, the Rules and these Bye-laws.

(e)(v) Unless otherwise provided under the Act, the Rules or these Bye-laws, any notice or communication served upon the first holder shall be deemed to have been duly served upon all the Joint Members.

(f)(vi) On the death, resignation, cessation or transfer of the first holder, the rights and liabilities of the Joint Member or Joint Members shall be governed by the provisions of the Act, the Rules and these Bye-laws relating to transfer of membership and transfer after death.

Bye-law 25. Associate Member

(a)(i) Any person as defined in Section 154B-1(18)(a) of the Act may apply for admission as an Associate Member of a Member in the prescribed form, along with the written recommendation or consent of such Member.

(b)(ii) An Associate Member may be admitted by the Committee subject to the provisions of the Act, the Rules and these Bye-laws.

(c)(iii) The recommendation or consent given by the Member may be revoked by him at any time by giving a written intimation to the Society, and upon such revocation, the Associate Membership shall cease.

(d)(iv) An Associate Member shall also cease to be such upon the resignation, cessation or death of the Member who has recommended or consented to his admission, or upon the resignation or death of the Associate Member.

(e)(v) An Associate Member shall exercise only such rights and discharge such duties as are specifically conferred under the Act, the Rules and these Bye-laws.

Bye-law 26. Transfer of Shares and Interest During the Lifetime of a Member

(a)(i) A Member may transfer his shares and interest in the capital/property of the Society by—

(i)(a) a duly stamped and registered Agreement for Sale or Conveyance;

(ii)(b) a duly stamped and registered Gift Deed;

(iii)(c) a duly stamped and registered Exchange Deed;

(iv)(d) a Sale Certificate issued by a Court, Recovery Officer under the Maharashtra Co-operative Societies Act, 1960, an Authorised Officer under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, a Bank, Financial Institution, Credit Agency or any other Competent Authority under any law for the time being in force; or

(v)(e) any other duly stamped and registered instrument or document recognised under any law for transferring the right, title and interest in the flat/unit together with the shares and interest in the Society.

(b)(ii) Every transfer referred to in clause (i) shall be subject to the provisions of the Act, the Rules, Government directions and these Bye-laws.

(c)(iii) A transfer under clauses (a), (b), (c) and (e) shall be treated as a voluntary transfer made by the Member.

(d)(iv) A transfer under clause (d) shall be deemed to be a transfer effected by operation of law or pursuant to statutory recovery or legal proceedings, and such transfer shall not be invalid merely because the transferor is unable, unwilling or not available to execute any application, resignation, declaration, undertaking or other document ordinarily required for a voluntary transfer.

Bye-law 27. Conditions and Documents for Transfer

(a)(i) Every application for transfer of shares and interest shall be made in the prescribed form.

(b)(ii) In the case of a voluntary transfer under Bye-law No. 26(iii), the following documents shall ordinarily accompany the application:—

(i)(a) application by the transferor;

(ii)(b) application for admission to membership by the proposed transferee;

(iii)(c) resignation of the transferor from membership;

(iv)(d) the original Share Certificate, wherever available;

(v)(e) the duly stamped and registered instrument or document referred to in Bye-law No. 26;

(vi)(f) proof of payment of the transfer fee, entrance fee and premium, wherever applicable;

(vii)(g) such declarations, undertakings and other documents as may be prescribed under the Act, the Rules and these Bye-laws.

(c)(iii) In the case of a transfer under Bye-law No. 26(iv), the Committee shall require only such documents as are applicable to such transfer, and the absence of the transferor’s application, resignation, consent, declaration, undertaking or the original Share Certificate shall not, by itself, be a ground for refusing the transfer.

(d)(iv) Before approving any transfer, the Committee shall satisfy itself that—

(i)(a) the proposed transfer complies with the provisions of the Act, the Rules, Government directions and these Bye-laws;

(ii)(b) the transferor had a lawful right, title and interest capable of being transferred, or that the applicant has lawfully acquired such right by operation of law;

(iii)(c) the proposed transferee is eligible for admission as a Member;

(iv)(d) the documents produced establish the entitlement of the applicant to seek transfer;

(v)(e) where required under any law, lease, grant, allotment or direction of any competent authority, the necessary approval, permission or No Objection Certificate has been obtained; and

(vi)(f) all other requirements prescribed under the Act, the Rules and these Bye-laws have been complied with.

Explanation: Nothing contained in this Bye-law shall affect the first charge of the Society under Section 154B-7 of the Act, and the rights of the Society to recover its dues in accordance with the provisions of the Act and other applicable laws shall remain unaffected.

Bye-law 28. Nomination

(a)(i) Every Member or Joint Member of the Society may nominate one or more persons in the prescribed Nomination Form for the purpose of transfer of the shares and interest of the deceased Member in accordance with Section 154B-13 of the Act, Rule 106C-8 and these Bye-laws.

(b)(ii) The nomination shall be signed by the Member and submitted to the Society during his lifetime. Where the shares and interest are held jointly, each Joint Member may make a separate nomination in respect of his or her respective share and interest.

(c)(iii) An Associate Member or a Provisional Member shall not be entitled to make any nomination.

(d)(iv) A Member may, at any time during his lifetime, revoke or vary an existing nomination by submitting a fresh Nomination Form in the prescribed form. Upon recording of such fresh nomination, the earlier nomination shall stand revoked to the extent of such revocation or variation.

(e)(v) The Secretary shall acknowledge the receipt of every nomination, revocation or variation and shall record the same in the Register of Nominations maintained by the Society in accordance with Rule 106C-9.

(f)(vi) No fee shall be charged for recording the first nomination. A fee of ₹100/- shall be charged for every subsequent nomination, revocation or variation.

(g)(vii) Where more than one nominee is appointed, the Member may specify the proportion in which the shares and interest shall devolve upon each nominee. In the absence of such specification, the nominees shall be deemed to have been nominated in equal proportion.

(h)(viii) A nomination shall not by itself create or confer any ownership, title or beneficial interest in the flat/unit or in the shares and interest of the deceased Member. It shall only entitle the nominee to seek admission as a Provisional Member and to represent the estate of the deceased Member in accordance with Section 154B-13 of the Act, the Rules and these Bye-laws until the final transfer is effected in favour of the person or persons legally entitled thereto.

(i)(ix) The rights, title and interest of the deceased Member shall ultimately devolve in accordance with the applicable succession law, testamentary disposition, registered family arrangement or any other legally valid document recognised under law.

Bye-law 29. Recording of Nomination

(a)(i) Every nomination, revocation or variation received by the Society shall be placed before the next meeting of the Committee for taking the same on record.

(b)(ii) The Committee shall record the nomination, revocation or variation in the minutes of its meeting, and the Secretary shall make the necessary entries in the Register of Nominations and such other records of the Society as may be prescribed.

(c)(iii) The acknowledgment issued by the Secretary on receipt of the nomination, revocation or variation shall be deemed to be acknowledgment of its recording by the Society.

(d)(iv) The Society shall maintain a separate Register of Nominations containing the particulars of every valid nomination, revocation and variation in accordance with Rule 106C-9 of the Rules.

(e)(v) The Society shall not refuse to record a nomination, revocation or variation if it is submitted in the prescribed form and is otherwise in accordance with the provisions of the Act, the Rules and these Bye-laws.

(f)(vi) Recording of a nomination by the Society shall not amount to adjudication of the validity of the nomination or determination of the rights, title or interest of any person in the shares, interest or property of the deceased Member.

Bye-law 30. Admission of Provisional Member after Death of a Member

(a)(i) Admission of Provisional Member on the Basis of Nomination

(i)(a) Upon the death of a Member or Joint Member, the nominee of the deceased Member may apply for admission as a Provisional Member in the prescribed form together with an Indemnity Bond indemnifying the Society against any future claims in respect of the shares and interest of the deceased Member in the capital/property of the Society.

(ii)(b) Where more than one nominee has been appointed, all such nominees shall make a joint application. They may, by a joint Affidavit or Declaration, authorise any one amongst them to be admitted as the Provisional Member.

(iii)(c) Where the nominees fail to authorise any one amongst them to be admitted as the Provisional Member, the Committee shall require them to comply with the provisions of the Act, the Rules and these Bye-laws before considering the application.

(iv)(d) The Committee shall, after verification of the nomination and other relevant documents and after making such inquiry as it deems fit, admit the authorised nominee as a Provisional Member.

(b)(ii) Admission of Provisional Member where no Nomination exists

(i)(a) Where a Member dies without making a nomination, or where no nominee comes forward for admission as a Provisional Member, the Society shall invite applications from the legal heirs or legal representatives of the deceased Member by publishing a notice in at least two local daily newspapers having wide circulation and by displaying such notice on the Notice Board of the Society, in the manner prescribed under the Rules.

(ii)(b) The legal heirs or legal representatives claiming the shares and interest of the deceased Member shall submit an application in the prescribed form together with an Indemnity Bond indemnifying the Society against any future claims.

(iii)(c) Where there is more than one legal heir or legal representative, they may, by a joint Affidavit or Declaration, authorise any one amongst them to be admitted as the Provisional Member.

(iv)(d) If the legal heirs or legal representatives fail to arrive at a consensus, or if any dispute regarding succession exists, the Committee shall require the production of a Succession Certificate, Probate, Letters of Administration, Legal Heirship Certificate or such other document recognised under law before admitting any person as a Provisional Member.

(v)(e) After considering the applications, claims or objections, if any, received pursuant to the public notice and after making such inquiry as it deems fit, the Committee may admit the authorised legal heir or legal representative as a Provisional Member.

(c)(iii) Rights and Limitations of a Provisional Member

(i)(a) A Provisional Member shall continue as such until the final transfer of the shares and interest of the deceased Member is completed in accordance with the Act, the Rules and these Bye-laws.

(ii)(b) Admission as a Provisional Member shall not confer any ownership, title or beneficial interest in the flat/unit or in the shares and interest of the deceased Member.

(iii)(c) The name of the Provisional Member shall not be entered on the Share Certificate and no Share Certificate shall be issued in his name.

(iv)(d) Admission as a Provisional Member shall not affect or determine the rights, title or interest of the legal heirs or of any other person claiming through the deceased Member.

(v)(e) A Provisional Member shall be entitled to exercise only such rights and discharge such obligations as are expressly provided under the Act, the Rules and these Bye-laws.

Bye-law 31. Transfer on the Basis of Registered Family Arrangement

(a)(i) Where, after the death of a Member or any Joint Member, the legal heirs or legal representatives have entered into a duly stamped and registered Deed of Family Arrangement determining the shares, rights, title and interest of the deceased Member in the flat/unit and the shares and interest in the capital/property of the Society, they may apply for transfer in accordance with such Deed.

Explanation: For the purposes of this Bye-law, “Family Arrangement” means a duly stamped and registered arrangement or settlement entered into amongst the legal heirs or legal representatives of the deceased Member for distribution of the shares, rights, title and interest of the deceased Member.

(b)(ii) The application shall be made in the prescribed form and shall be accompanied by—

(i)(a) the original or a certified copy of the duly stamped and registered Deed of Family Arrangement;

(ii)(b) an Indemnity Bond indemnifying the Society against any future claims in respect of the shares and interest of the deceased Member;

(iii)(c) the original Share Certificate, wherever available; and

(iv)(d) such other documents as may be prescribed under the Act, the Rules and these Bye-laws.

(c)(iii) Upon receipt of the application, the Committee shall publish a public notice in the manner prescribed under the Rules inviting claims or objections, if any, from persons claiming any right, title or interest in the shares and interest of the deceased Member.

(d)(iv) If no claim or objection is received within the prescribed period and the Committee is satisfied that the application complies with the Act, the Rules and these Bye-laws, it may approve the transfer in accordance with the registered Deed of Family Arrangement.

(e)(v) Where any claim or objection is received, or where the Committee is satisfied that a dispute exists regarding the rights of the legal heirs or the validity or effect of the Deed of Family Arrangement, the Committee shall not determine such dispute and shall require the parties to produce appropriate succession documents or an order of the competent Court before considering the transfer.

(f)(vi) Upon approval of the transfer, the Society shall admit the transferee as a Member, record the transfer in the Register of Members and other statutory records, endorse or issue the Share Certificate in accordance with the Act, the Rules and these Bye-laws, and the Provisional Membership, if any, shall thereupon cease.

Bye-law 32. Transfer on the Basis of Succession Documents

(a)(i) Where the shares, rights, title and interest of a deceased Member or Joint Member are to be transferred on the basis of a Succession Certificate, Legal Heirship Certificate, Probate of a Will, Letters of Administration, Court Decree or Order, or any other document recognised under law, the person or persons entitled thereunder may apply for transfer of the shares and interest in the prescribed form.

(b)(ii) The application shall be accompanied by—

(i)(a) the original or a certified copy of the Succession Certificate, Legal Heirship Certificate, Probate, Letters of Administration, Court Decree, Court Order or other legally recognised succession document;

(ii)(b) the original Share Certificate, wherever available;

(iii)(c) an Indemnity Bond indemnifying the Society against any future claims in respect of the shares and interest of the deceased Member; and

(iv)(d) such other documents as may be prescribed under the Act, the Rules and these Bye-laws.

(c)(iii) The Committee shall verify the documents produced and satisfy itself that the applicant is entitled to seek transfer in accordance with the Act, the Rules and these Bye-laws.

(d)(iv) Where the succession documents clearly determine the person or persons entitled to the shares and interest of the deceased Member and there is no legal prohibition or restraint, the Committee may approve the transfer in favour of such person or persons.

(e)(v) Where the Society receives any order of a Court or competent authority restraining the transfer, or where the succession document itself requires compliance with any further condition before transfer, the Committee shall keep the application pending until such order is vacated or the required compliance is fulfilled.

(f)(vi) The Society shall not adjudicate any dispute relating to the validity, interpretation or legal effect of any succession document. Any person disputing such document shall obtain appropriate orders from the competent Court, and the Society shall act in accordance with such orders.

(g)(vii) Upon approval of the transfer, the Society shall admit the transferee as a Member, record the transfer in the Register of Members and other statutory records, endorse or issue the Share Certificate in accordance with the Act, the Rules and these Bye-laws, and the Provisional Membership, if any, shall thereupon cease.

Bye-law 33. Disposal of Transfer Applications

(a)(i) The Secretary shall scrutinise every application for transfer of shares and interest within fifteen days from the date of its receipt. Where any document, information or compliance is found deficient, the Secretary shall communicate such deficiency to the applicant in writing or by electronic means, specifying the documents, information or compliances required. Only a complete application together with all prescribed documents and compliances shall be placed before the Committee for consideration. No transfer shall be recorded by the Society unless it complies with the provisions of the Act, the Rules, Government directions and these Bye-laws.

(b)(ii) The Committee shall consider and decide every complete application for transfer within thirty days from the date on which all prescribed documents, information and compliances are received by the Society. The decision of the Committee shall be recorded in the minutes of the meeting and shall be communicated to the applicant within seven days from the date of such decision.

(c)(iii) Before approving any transfer, the Committee shall satisfy itself that—

(i)(a) the proposed transfer complies with the provisions of the Act, the Rules, Government directions and these Bye-laws;

(ii)(b) the transferor has a lawful right, title and interest capable of being transferred, or that the applicant has lawfully acquired such right by operation of law;

(iii)(c) the transferee is eligible for admission as a Member;

(iv)(d) all prescribed documents, declarations, undertakings, fees and other requirements under the Act, the Rules and these Bye-laws have been duly complied with; and

(v)(e) in every transfer other than a transfer consequent upon the death of a Member, all dues payable to the Society in respect of the shares and interest and the flat/unit have been paid in accordance with the provisions of Section 154B-7 of the Act.

(d)(iv) In the case of a transfer consequent upon the death of a Member, the existence of outstanding dues payable by the deceased Member shall not, by itself, be a ground for refusing admission of a Provisional Member or refusing transfer of the shares and interest to the person or persons entitled thereto under the Act, the Rules and these Bye-laws. Nothing contained in this clause shall affect the first charge of the Society under Section 154B-7 of the Act or its right to recover such dues in accordance with law.

(e)(v) No application for admission to membership or transfer shall be refused except for non-compliance with the provisions of the Act, the Rules, these Bye-laws or any lawful order issued by a competent authority. Every order refusing the application shall be in writing and shall state the reasons therefor.

(f)(vi) Where the Society fails to communicate its decision within three months from the date of receipt of the complete application, the applicant may claim the benefit of deemed membership under Section 22(2) of the Act. Such claim shall be subject to an order of the Registrar passed under the Act after giving an opportunity of hearing to the parties concerned.

(g)(vii) Upon approval of the transfer, the Society shall admit the transferee as a Member, record the transfer in the Register of Members and other statutory records, endorse or issue the Share Certificate, wherever required, and communicate the admission of the transferee in the prescribed manner.