Nomination vs will in a housing society: what a nominee actually gets

Rules and rates as of 15 October 2026.

Most Mumbai flat owners fill in a nomination form for their housing society and assume that settles who gets the flat. It does not. A nomination tells the society whom to deal with when a member dies. Who actually owns the flat is decided by the will, or by the succession law that applies if there is no will. Courts have said this for decades, and since 2019 the Maharashtra law for housing societies says it in so many words.

What the law says now

For years the rule sat in section 30 of the Maharashtra Co-operative Societies Act, 1960. On a member's death, the society had to transfer the member's share or interest to the person nominated under the rules or, if there was no nominee, to whoever appeared to the committee to be the heir or legal representative. Section 30(2) let that person ask for the value of the share instead, and section 30(4) made such transfers valid against other claims. Rule 25 of the 1961 Rules set out how a member nominates (by a signed document or an entry in the society's book) and, with no nominee, required a public notice at the society's office before the committee decided who the heir was.

In 2019 the state added a separate chapter for housing societies, Chapter XIII-B. The amendment Bill (L.A. Bill No. XVII of 2019) listed section 30 among the provisions that no longer apply to housing societies and put in a new section 154B-13. Under it, the society transfers a deceased member's share, right, title and interest to the people entitled on the basis of a will, succession certificate, legal heirship certificate or family arrangement, or to a nominee. Its first proviso is the important one: the society must admit the nominee as a provisional member until the legal heirs, or the person entitled under the will, are admitted in place of the deceased.

The Bombay High Court applied this section in Mahim Makarand Co-op Hsg Soc v. State of Maharashtra (13 February 2024). It said that once a nomination is registered the society is "under obligation to admit the nominee", but that such a transfer "shall only be binding on the Society" and has "no relevance to the issue of title" between heirs.

What the courts have said

Indrani Wahi (2016). In Indrani Wahi v. Registrar of Co-operative Societies (10 March 2016), a Kolkata member had nominated his daughter; his son and widow objected. The Supreme Court held that a society with a valid nomination has "no option whatsoever, except to transfer the membership in the name of the nominee". But it added that this transfer "would have no relevance to the issue of title between the inheritors or successors", who remain free to pursue their claims in law. The case was under the West Bengal Act, but its logic is the one Mumbai courts follow.

Ramdas Sattur (2009). In Ramdas Shivram Sattur v. Rameshchandra, the Bombay High Court, reading section 30 and Rule 25, held that a nominee "does not become absolute owner of the property". The nominee there could not sell to the exclusion of the other legal heirs.

Shakti Yezdani (2023). This one went to the Supreme Court. In Shakti Yezdani v. Jayanand Jayant Salgaonkar (14 December 2023) the question was nominees of company shares and demat securities, not flats. The court held that the nominee "would not get an absolute title" and that "there is no third mode of succession". It is useful because it lines up company-share nominations with the long-standing co-operative society position.

Nominee vs legal heir, side by side

Question	Nominee	Legal heir or will beneficiary
Does the society have to admit them?	Yes, as a provisional member, once the nomination is registered	Yes, once they show a will, succession or heirship certificate, or family arrangement
Who owns the flat?	Not by virtue of nomination	Yes, in the shares set by the will or succession law
Can they sell the flat alone?	No; courts have refused to let a nominee sell to the exclusion of other heirs	Only all owners together, or one who has bought out or received releases from the others
Time limit to apply	Within six months of the death (model bye-law 34, proposed version)	Society invites claims by notice; committee may ask for a succession certificate if heirs disagree (bye-law 35)
Transfer premium	None on transfer to a nominee	None on transfer to an heir; up to ₹25,000 if the flat is later sold outside the family

Worked example: one flat, three heirs

Suresh owns a flat in a Mumbai housing society worth ₹1.8 crore. He nominated his daughter Kavita years ago and died without a will. Assume the succession law that applies gives his widow, his son and Kavita equal shares (your lawyer will tell you the actual shares in your case).

Step 1: the society. Kavita applies within six months. The society admits her as a provisional member under section 154B-13. It charges no transfer premium for a transfer to a nominee.

Step 2: who owns what. Each heir's share = ₹1,80,00,000 ÷ 3 = ₹60,00,000. Kavita's name in the society's register does not change this.

Step 3: a sale. If the family sells to an outsider at ₹1.8 crore, all three sign, or the other two sign release deeds in Kavita's favour first. If Kavita sold alone and kept the money, her mother and brother could claim their ₹1,20,00,000 (2 × ₹60,00,000) from her. On the sale, the society can charge a premium: the state's Housing Manual for co-operative housing societies caps it at ₹25,000, or the general body's figure if that is lower. ₹25,000 ÷ ₹1,80,00,000 = about 0.14% of the price.

Now change one fact. Suresh left a registered will giving the flat to his son. Kavita is still admitted provisionally, but the son, once he produces the will (and probate, if your lawyer says it is needed), is admitted in her place.

One small conflict in the official papers: the first nomination is free in both, but the state's Housing Manual puts the fee for a fresh nomination at ₹50, while the proposed model bye-laws on the Co-operation Commissioner's site say ₹100. Your own society's registered bye-laws decide which applies.

So which should you do?

Both, for different jobs. A nomination keeps the society side quick and avoids the flat being frozen while heirs sort things out. A will decides who owns it. If they point to different people, the will governs ownership; the nominee only holds the flat on paper in the meantime. A lawyer can draft a will that matches your nomination and tell you whether probate will be needed.