In many Societies, the absence of a Will or a clear nomination often creates challenges in transferring property in a cooperative housing society (CHS/Society). Questions about rightful ownership, legal documentation and the role of society management frequently arise. Similarly, disputes over illegal charges in maintenance bills can leave members feeling helpless, particularly when faced with an uncooperative managing committee or deputy registrar of cooperative societies. Lastly, redevelopment projects, often seen as a boon for Societies, can become contentious if transparency and fairness are compromised.
Navigating the legal and procedural intricacies of CHS matters can be overwhelming. This week's column addresses some of these pressing concerns, offering practical guidance and clarifying common misconceptions.
Transfer of Flat in the Absence of Will or Nomination
Question: We are a registered CHS located in the western suburbs of Mumbai. Recently, one of our members passed away without a Will, and the flat is solely in his name. In the past, he might have submitted a nomination form, but we do not have those records. The deceased's wife and two major sons are non-resident Indian (NRIs).
The following questions arise:
1. Can we transfer the flat to the wife's name? If yes, what steps do we need to follow?
2. The second son is ready to relinquish his share of the flat to his mother (the deceased's wife). In this case, is a release deed required?
3. Can the flat be transferred in the joint names of his wife and the first son?
4. In the case of a release deed, do we need to collect the applicable transfer fees?
Answer: Presuming that the member is of the Hindu religion and does not have married daughters, the answers to your queries are as follows:
1. In the absence of a nomination and a Will, the widow and all other legal heirs, having equal shares, are entitled to apply for the transfer of the share certificate in their joint names. Alternatively, based on proper documentation before the competent authority, the other legal heirs can release their respective undivided rights in favour of the widow. The Society can then transfer the membership to the widow.
2. Yes, a release deed is required.
3. Yes, the flat can be transferred jointly in the names of the wife and the first son, provided the rights are clearly specified and a duly registered release deed is executed by the remaining siblings.
4. No, as this is a family arrangement, transfer fees are not applicable.
Contesting Illegal Charges in the Maintenance Bill
Question: There are illegal charges in my maintenance bill, violating bye-laws 67(a) and 68(a). The managing committee (MC) is not removing them and the deputy registrar is also not paying any heed. Where can I address these illegal dues?
Answer: If you have received an adverse order from the deputy registrar, you should file an appeal or revision with the joint registrar within the prescribed time frame, based on the contents of the order.
For additional clarity and guidance, you may also visit Moneylife Foundation with all relevant documents, including correspondence with the Society, your application to the deputy registrar, its outcome (if any), and a copy of the applicable bylaws. Consultation with an expert of Moneylife Foundation is free of cost and you may call the landline nos. (022) 35131664 or (022) 35036925 during business hours for an appointment.
Calling for Revised Quotations on Redevelopment
Question: Can a newly formed managing committee (MC), elected three months ago, proceed with eight-month-old quotations received and opened by the previous committee? Shouldn't the new MC call for fresh quotations from both the same and new project management company (PMC) and advocates?
Out of 19 members, six are against proceeding with the old quotations. They feel transparency under Rule 79A has not been maintained, and the charges for PMC and the advocate, amounting to Rs25 lakh, are excessive. The same work can now be completed for Rs15 lakh—40% less—based on updated estimates. While the costs will eventually be reimbursed by the developer, members question the necessity of paying such a high amount.
The new MC argues that calling for fresh quotations will delay the process significantly. However, this decision raises doubts among six members about the MC's intentions. How can we stop this proceeding in the larger interest of all members? The next general body meeting is scheduled for 5 January 2025. Please guide.
Answer: The concerns raised by the members have merit. However, the managing committee's decision need not necessarily be revised solely due to the change in leadership.
If members strongly believe that the old quotations are not in the best interest of the Society, they can challenge the decision on valid grounds. It is advisable to approach the deputy registrar of cooperative societies or, if necessary, the high court, but only after consulting a competent and experienced lawyer familiar with cooperative society matters.
In the meantime, ensure that your objections and concerns are documented and presented at the upcoming meeting for broader member consideration.
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
