Nomination by Member of Society empowers nominee to hold property in trust for real owner : Maharashtra Co-op. Societies Act, S. 30.

3. Nomination by Member of Society empowers nominee to hold
   property in trust for real owner : Maharashtra Co-op. Societies Act, S. 30.

[Ramdas Shivram Sattur v. Rameshchandra alias Ramchandra
Popatlal Shah & Ors., AIR 2009 (NOC) 2058 (Bom.)]

One Shri Shivram had purchased a plot of land in his own
name from co-op. hsg. Society. He nominated his wife Smt. Tarabai the original
defendant No. 1 as his nominee pursuant to S. 30 of the Mah. Co-op. Societies
Act, r/w. Rule 25 of the Rules framed thereunder.

They had 4 children namely Ramdas, Krishnadas, Vithaldas
and Sangita. After death of Shivram, Tarabai sold the property to Ramchandran
Popattlal Shah. The respondent No. 1 instituted suit against Tarabai for
specific performance and declaration. The society was also impleaded as party.

In the above litigation inter alia among other issue
one issue that came up for consideration was about the status of a nominee who
has been validly nominated as a member of Co-op. society u/s. 30 of
Maharashtra Co-op. Society Act.

The Court observed that by virtue of nomination of wife by
her deceased husband u/s.30 of the Maharashtra Co-op Societies Act, 1960, she
does not become absolute owner of the property, however, was only empowered to
hold the property in trust for the real owners that too for the purpose of
dealings with the society. Wife as such, had no power, authority and title to
alienate the property to the exclusion of the other legal heirs of her
deceased husband. Wife as such, was not competent to enter into an agreement
for sale of the suit plot as she along with her four children were class I
heirs of her deceased husband.

S. 30 of the Maharashtra Co-op. Societies Act does not
provide for a special rule of succession altering the rule of succession laid
down under the personal law.