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rajat jain   18 November 2022

Atm withdrawal by nominee after death of the bank account holder

My grandfather had a bank account to which my father was nominee. My father are 4 brothers. After the death of my grandfather, my father withdraws Rs, 1,20,000/- through ATM without informing the bank. Total amount in the account was Rs,5,55,000 out of which Rs 1,20,000 was withdrawn through ATM.

Out of 3 brothers of my father, 2 brothers know before about the ATM withdrawal and have no objection. But One brother (my Chacha) has objection and filed a case against my father under IPC 406. My father spends all money, Rs 1,20,000/- on my grandfather's last rituals. My father has complete bills of Rs 1,20,000. Remaining Balance of Rs 4,35,000 was legally transferred to my father's account by Bank's manager. 

My father was not aware of the rules and thought that as he is a nominee, he can withdraw money through ATM. Also, my father didn't spend money on his own.

My chacha, who filled a case against my father has never demand his share (on my grandfather bank money) to my father and just filed a case against my father. The reason is – A property dispute case is already running from last few years between 3 brothers at one side Vs my chacha on another side.

In such case - will IPC 406 is applicable on my father?



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 4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     18 November 2022

since the case is in the court, your father has to give explanation to the court in writing when court summons to your father.  Whoever commits criminal breach of trust shall be punished with imprisonment of either descripttion for a term which may extend to three years, or with fine, or with both.

Advocate Bhartesh goyal (advocate)     18 November 2022

Nominee is entitled to get the deposits after the death of account holder but has no right to withdraw money from account holder's ATM or bank account without permission of Bank Manager.Moreover your father has used the password to operate ATM which is confidential and can not be used legally.Engage prudent lawyer who may tackle the case tactfully.

Sudhir Kumar   06 August 2023

When already there was a dispute and family was having a strained relation your father could have and should have acted more carefully. In these circumstances he can be saved from punishment under 406 of IPC only on the mercy of your uncle.

P. Venu (Advocate)     07 August 2023

It was wrong that the money was withdrawn from the ATM after the demise of the grandfather. However, in the absence of criminal intention (mens rea), the provisions of Section 406 does not apply.

However, the nominee is only a trustee on behalf of all the legal heirs. 


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