MSCS Act provision ensures smoother handing over of property rights in housing societies when members expire without leaving behind wills
The amended law eliminates delays in transferring property of deceased society members. Representation pic
"Family Arrangement", a term introduced in the Maharashtra State Co-operative Societies (MSCS) Act, 2019, will provide a faster remedy for transferring the share, rights, title and interest in a flat, when the original member, expire intestate (without leaving a will) and this will avoid the age-old practice of approaching the court to claim testamentary rights, which usually takes anywhere between six months to few years.
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Housing experts have informed and made suggestions to the state authorities to incorporate the process of family arrangements, in the yet-to-be-passed MSCS Rules and its bylaws.
mid-day in its article titled ‘Need clarity on ownership rights in CHS’ highlighted State Housing Federation's calls for an explanation in housing society rules pertaining to nomination to clear misconception.
Earlier practice
Advocate Shreeprasad Parab, expert director, Maharashtra State Housing Federation
“Before the insertion of the new chapter of housing societies, upon the death of the member, the person named in the nomination form was admitted as a nominee member who holds the flat in ‘Trust’ till all the legal heirs are brought on record as per the testamentary documents, succession certificate or legal heirship certificate from the court of competent jurisdiction,” said Advocate Shreeprasad Parab, expert director, Maharashtra State Housing Federation.
The New Housing Chapter XIII-B which was inserted in the amended MSCS Act of 2019 under Section 154 B, has provided a separate provision for the transfer of share, right, title and interest in the property of the deceased member.
What is Family Arrangement?
“The term Family Arrangement can be explained by first defining what is Family i.e. family means a person related to each other by blood, law or affinity and thus the term Family Arrangement is an agreement that is made by the members of the family to distribute the property in the manner other than what is provided in the existing law,” said Parab.
Provisional member
“On the death of the member, the nominees shall apply to the society along with the death certificate within six months of the death of the member for the provisional membership of the society. If there is more than one nominee, they shall make a joint application to the society and indicate the name of the nominee who should be enrolled as a provisional member of the society. If no person has been nominated, then the society shall admit such a person as a provisional member,” said Parab.
In case of sole legal heir
“If there is a sole legal heir as per the personal succession laws then there is no family left out to execute the agreement therefore such sole legal heir has to proceed with the other three remedies (earlier practice) such as testamentary documents, succession certificate or legal heirship certificate,” said Parab.
Mandatory registration
When asked whether Family Arrangements need to be Registered, Parab said, “In Co-operative Housing Society, if the share, right, title and interest is transferred through a deed named as Family Arrangement then such deed shall be executed and registered under the provisions of the Registration Act, 1908.”
Landmark judgement
Citing a recent landmark judgement CA Ramesh Prabhu, founder chairman of Maharashtra Societies Welfare Association (MahaSEWA), said, “In a recent landmark judgment of the Bombay High Court in the case of M/s Bima Nagar Cooperative Housing Society v/s The Divisional Joint Registrar Co-Operative Soc. And Ors., the Hon'ble Court has held that as per Section 154B-13 of the MSCS Act of 2019, a release deed executed between the legal heirs is considered as “Family Arrangements.” This ruling has clarified the process of membership transfer in housing societies under Section 154B-13 of the Maharashtra Co-operative Societies Act in the case of a member's demise by executing the Release deed”.
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