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OUTLINE
Concept of Nominee
Applicable Statues Procedure
Case Laws
CONCEPT OF NOMINEE
The term nomination or nominee has not been defined anywhere.
However, the provisions of nomination is found in various statutes
relating to L.I.C, Provident Fund, Gratuity etc. In SMT SARBATI DEVI v. SMT USHA DEVI, A.I.R. 1984 SC, 346 it was held that nomination does not confer any beneficial interest in the nominee and the other legal heirs can claim the amount in accordance with the law of succession governing them. Therefore as a principal one can very well say that nominee is mere trustee with whom society can initially or prima facie deal with and after the death of a member, all the heirs of the deceased member will have a right of succession to the property, and the nominee cannot exclude other heirs. In other words the provisions of ordinary succession law will not be affected by nomination.
APPLICABLE STATUTES
MAHARASHTRA COOPERATIVE SOCIETIES (MCS) ACT, 1960
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PROCEDURE OF NOMINATION
Section 30 (1) of the MCS Act, 1960 provides that on the death of a
member of a society, the society shall transfer the share or the interest of the deceased member to the person or persons nominated in accordance with the rules. In case no such person or persons have been nominated by the deceased the Committed of the Society shall transfer the share or interest to such person who may appear to be the heir or the legal representative of the deceased member.
Rule 25 (1) of the MCS Rules, 1961 provides the following ways in
which nomination can be made by a member: (i) By a document signed by the member. Such document is to be deposited with the society during the members lifetime.
CASE LAWS
In Ramdas Shivram Sattur v. Rameshchandra Popatlal Shah, the
Bombay High Court, relying on Sarbati Devi, held that "the purpose of nomination under Section 30 of the Maharashtra Cooperative Societies Act, 1960 is essentially to provide for the discharge of the societies obligation and that a nomination does not lay down any special rule of succession of properties of a deceased member overriding the general rules of inheritance prescribed by the personal law of the member of a cooperative society."