Section 22 of the Co-operative Societies Act, 1912: Transfer of Interest on Death of Member

Section 22 deals with what a registered society may do with the share, interest and other money belonging to a member after that member dies. It recognises a nomination made under the applicable rules and, where there is no nominee, permits the society to deal with the person appearing to its committee to be the heir or legal representative.

Current-law note: The Co-operative Societies Act, 1912 remains listed on the official India Code portal. Co-operative society law is also governed by State-specific legislation in many jurisdictions. For an actual succession or membership dispute, the applicable State Act, rules and the society's registered by-laws should therefore be checked in addition to this Central Act.

Meaning and scope of Section 22

The provision creates a statutory mechanism enabling a registered society to settle the deceased member's share or interest. The relevant recipient may be a validly nominated person or, in the absence of a nomination, a person whom the committee considers to be the heir or legal representative. The value of the share or interest is determined in accordance with the applicable rules or by-laws.

The section also distinguishes between societies with unlimited liability and societies with limited liability. In a limited-liability society, the recipient must satisfy the membership qualifications under the applicable rules and by-laws before the share or interest is transferred to that person.

Text of Section 22 - Transfer of interest on death of member

Key legal points

Nominee, heir or legal representative

A nomination made in accordance with the applicable rules is the first statutory route mentioned in Section 22. If there is no nominee, the committee may identify the person who appears to be the heir or legal representative for the purpose of the transfer or payment contemplated by the section.

Membership qualification matters

For a society with limited liability, the statutory text makes qualification under the rules and by-laws relevant to transfer of the deceased member's share or interest. The provision also contains a one-month application mechanism for transfer to another qualified person specified in the application.

Other money due to the deceased member

Sub-section (2) separately permits payment of other money due from the society to the deceased member to the nominee, heir or legal representative, as applicable.

Protection for statutory transfers and payments

Sub-section (3) provides that a transfer or payment made by the registered society in accordance with Section 22 is valid and effectual against a demand made upon the society by another person.

Official legal source

For verification of the bare Act, see the Co-operative Societies Act, 1912 on India Code.

Practical caution

Section 22 should be read with the applicable rules, registered by-laws and any State co-operative societies legislation governing the particular society. Questions of succession, title or entitlement can depend on facts and on other applicable laws; the statutory payment or transfer mechanism should not be treated as a substitute for checking those provisions.