INDRANI WAHI versus REGISTRAR OF COOP. SOCIETIES & ORS.

Citation: [2016] 4 S.C.R. 307 · Decided: 10-03-2016 · Supreme Court of India · Bench: J.S. KHEHAR · Disposal: Disposed off

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Judgment (excerpt)

[2016) 4 S.C.R. 307 
INDRANI WAHi 
v. 
REGISTRAR OF COOP. SOCIETIES & ORS. 
(Civil Appeal No. 4646 of2006) 
MARCH 10, 2016 
[JAGDISH SINGH KHEHAR AND C. NAGAPPAN, JJ.] 
West Bengal Co-operative Societies Act, 19R3 - ss. 79 and 80 
r/w rr. 12 7 and 128 of the West Bengal Co-operative Societies Rules, 
1987 - Nomination uls 79 - By a member of a co-operative soci..:ty 
...: In favour of his married daughter - After the death of the original 
member, the membership transferred in the name of the daughter -
Objection to the transfer by the son and wife of the original member 
- Deputy Registrar of Co-operative Societies declined to transfer 
the J11embership in favour of the daughter (nominee) on the ground 
that she being married did not fall within definition of the term 
'family' as contemplated uls 79 rlw r. 12 7 - Writ petition by the 
nominee - Allowed by the Single Judge of High Court - Division 
Bench of the High Court held that the son and wife of the original 
member, being the inheritors, their interest in the property should 
be protected - On appeal, held: Jn case of a valid nomination u/ 
s. 79, the Co-operative Society is liable to tramfer the share or 
interest of a member in the name of the nominee - That would have 
no relevance to the issue of title between the inheritors or successors 
to the property of the deceased member - The Co-operative Society 
is directed to transfer the imerest of the deceased member, in favour 
of the nominee - However, it will be open to the inheritors to pursue 
their case of succession /inheritance. 
Allowing Civil Appeal No. 4646/2006 and disposing of Civil 
Appeal No. 4930/2006, the Court 
HELD: 1. As per s. 79 of West Bengal Co-operative Societies 
Act, 1983, where a member of a co-operative society nominates 
a person in consonance with the provisions of the West Bengal 
Co-operative Societies Rules, on the death of such member, the 
co-operative society is mandated to transfer all the share or 
interest of such member in the name of the nominee. The above 
interpretation of Section 79 also emerges from Section 80(1)(a) 
which postulates, that the share or interest of a member of the 
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SUPREME COURT REPORTS 
[2016] 4 S.C.R. 
society, "on his death" shall be transferred to a person 
"nominated under Section 79". The rights of others on account 
of an inheritance or succession is a subservient right. Only if a 
member had not exercised the right of nomination under Section 
79, then and then alone, the existing share or interest of the 
member would devolve by way of succession or inheritance. The 
heading of Section 80 - "Disposal of deceased member's share of 
interest" lends further credence to the above interpretation. Rule 
127 of the 1987 Rules also provides, that if a nomination has 
been made by a member under Section 79, the share or interest 
or the value of such share or interest standing in the name of the 
deceased member, would be transferred to the nominee. Rule 
128 of the 1987 Rules further leads to the same inference. 
Inasmuch as Rule 128 provides, that only in the absence of a 
nominee, the transfer of the share or interest of the erstwhile 
member, would be made on the basis of a claim supported by an 
order of probate, a letter of administration or a succession 
certificate (issued by a Court of competent jurisdiction). Thus, in 
case of a valid nomination under Section 79 of the 1983 Act, 'the 
Co-operative Society' is liable to transfer the share or interest of 
a member in the name of the nominee. [Paras 15, 17-19] [322-D-
F; 324-C, F, G] 
2. Transfer of share or interest, based on a nomination under 
Section 79 in favour of the nominee, is with reference to the 
concerned Co-operative Society, and is binding on the said society. 
The. Co-operative Society has no option whatsoever, except to 
transfer the membership in the name of the nominee, in 
consonance with Sections 79 and 80 of the 1983 Act (read with 
Rules 127 and 128 of the 1987 Rules). That, ·would have no 
relevance to the issue of title between the inheritors or 
successors to the property of the deceased. The Co-operative 
Society' is directed to transfer the share or interest of the society 
in favour of the appellant. It shall however, be open to the other 
members of the family to pursue case of succession or 
inheritance, if so advised, in consonance with law. [Para 20] (324-
H; 325-A-C] 
Usha Ranjan Bhaltacharjee v. 

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