Transfer of interest on death of member

(1) On the death of a member of a co-operative society, the society shall transfer the share or interest of the deceased member,— (a) to the person or persons nominated in accordance with the rules and if the nomination subsists; or (b) if no person has been so nominated or the nomination does not subsist, (i) where the share or interest of the deceased member does not exceed one lakh rupees, to such persons as may appear to the board to be the heirs or legal representatives of the deceased member, on the execution by such persons of an indemnity bond with such sureties as it may require; (ii) where the share or interest of the deceased member exceeds one lakh rupees, to such person or persons as produce a succession certificate or other legal authority granted by a competent court of law: Provided that such nominee, heir or legal representative as the case may be, is admitted as a member of the society: Provided further that nothing in this sub-section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in a co-operative society. (2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member ascertained in accordance with the rules. (3) A co-operative society may pay all other moneys due to the deceased member from the society to such nominee, heir or legal representative, as the case may be. (4) All transfers and payments made by a co-operative society in accordance with the provisions of this section shall be valid and effective against any demand made upon the society by any other person.