Transfer of interest on death of member

Transfer of interest on death of member.-

1. (1) A registered society may on the death of a member, transfer his share of interest in the capital of the society to the person nominated in accordance with the rules or, if there is no person so nominated, to such person as may appear to the society or, managing committee to be the heir or legal representative, as the case may be, a sum representing the value of such member’s share or interest, as ascertained in accordance with the rules or bye-laws : Provide that –
   • (i) In the case of society with unlimited liability, such nominee, heir of legal representative as the case may be, may require payment by society or the value of the share or interest of the deceased member ascertained, after deduction the amount of any charge existing under section 22:
   • (ii) in the case of a society with limited liability, the society shall transfer, subject to any charge existing under section 22 , the share or interest of the deceased member to such nominee, heir of legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the society or in his application within three months of the death of the decease member, to any person specified in the application who is so qualified : Provided further that no payment of sum in excess of rupees one hundred shall be made to any such heir or legal representative who has not been nominated in accordance with the rule, until after the decision under section 48 of any claim which may, within that period, be made by any other person.
2. (2) Subject as aforesaid, a registered society may pay all other money due to deceased member from the society to such nominee heir or legal representative, as the case may be.
3. (3) All transfers and payments, made by a registered society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.