(1) On the death of a member of a co-operative society, the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules, or if no person has been so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member and where there is any dispute of succession between two or more persons, the committee may require the claimants to produce the succession certificate:
Provided that such nominee, heir or legal representative, as the case may be, is admitted as a member of the society:
Provided further that nothing in this sub-section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in a co-operative society.
(2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or legal representative, as the case may be, may require the society to pay him the value of the share or interest of the deceased member ascertained in accordance with the rules.
(3) Where such nominee, heir or legal representative, as the case may be is not admitted as a member of the society under sub-section (1), the society shall pay him all other moneys due to the deceased member from the society.
(4) All transfer 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.