'Developer liable to pay maintenance of unsold flats'

Q. A society member, who was a widow with no children, passed away in March 2022. She and her brother-in-law were partners in a firm, which was dissolved after her death. A person had given a loan to this firm, which could not be repaid and hence the brother-in-law made a memorandum of understanding (MoU) to settle the loan by handing over the flat.

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This person along with his family has occupied the flat and duly pays the maintenance charges. He claims to be a member on the basis of the MoU and regular bill payment. Is it legally tenable?

- Aakash Khanna, Andheri

A. The partnership will come to an end upon the death of one of the two partners. In the absence of any legal document authorising the brother-in-law to hand over the flat, the said MoU will not stand the test of law. Hence, the occupier is not the owner as possession and ownership are two different aspects.

The ownership can be transferred by way of sale agreement, gift deed or by relinquishing the right through a release deed. There has to be a registered document between the transferor and the transferee. Section 154B-13 of the Maharashtra Cooperative Societies (MCS) Act provides that upon death of a member, the transfer of shares, right and interest in the property can be on the basis of testamentary documents, succession certificate, legal heirship certificate or document of family arrangement executed by legal inheritors. A duly nominated person can also stake claim.