(1) On the death of a member the Co-operative Society may transfer the share or interest of the deceased member in the capital to the person nominated in accordance with the rules made in this behalf, or if here is no person so nominated, the legal heirs or representatives of the deceased member or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such members share or interest as ascertained in accordance with the rules or bye-laws :
Provided that where the share or interest exceeds rupees five hundred in value, payment shall be made to the person who is certified to be legal heir by competent civil court :
Provided further that––
(i) in the case of a Co-operative Society with unlimited liabilities such nominee, heir or legal representative, as the case may be, may require payment by the Society of the value of the share or interests of the deceased member ascertained as aforesaid ; and
(ii) in the case of a Co-operative Society with limited liability, the Society shall transfer the share or interests of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the Society or on his application within one month of the death of the deceased member to any person specified in the application who is so qualified.
(2) Subject as aforesaid, a Co-operative Society shall within six months pay all other money due to the deceased member from the Society to such nominee, heir or legal representative, as the case may be.
(3) All transfers and payments made by a Co-operative Society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the Society by any other person.