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couch potato (Student)     16 April 2009

Withdrawal rights in jt. acc with either/survivor clause

1-      Respected sr., my case is an extension of a case mentioned earlier in this forum. I have copied thecase here for your ref. the case as it appears is-

Afixed deposit account is opened with postal dept., in joint name of father in law and daughter in law.
father in law dies accidentally. daughter in law withdraws the amount as is entitled as joint holder.
Nominees mentioned in form filled for opening fixed deposit   i.e sons daughters and wife of the deceased claim the amount of the fixed deposit in the joint name of the deceased and the daughter-in-law, as nominees, by filing a civil suit contending that the money belonged to the father in law of his terminal service benefits, to which they were all entitled to receive as the fixed deposit was in fact opened for the benefit of the entire family.There is no such will or any testament  showing   the intention of the deceased as such
my question: what do we mean by nominees in the above context. Whether any such alleged nominees shall have right to the amount of the fixed depoist, where one of the the joint holder of the fixed deposit is alive and has rightfully withdrawn the amount investedin the fixed deposit?

<My concerns are an extension of the above mentioned case. They are as follows-

What if there is a registered will by father in law (but yet to be probated)which mentions that all ‘his remaining assets’ be distributed equally amongst family members. Is the withdrawal of daughter in law illegal and fraudulent assuming the account is ‘either/survivor account? In such scenario, can the family members proceed to file criminal case against daughter in law and put her behind bars?Lets assume here the daughter in law has spent all the money and now refuses to pay stating she committed no fraud in withdrawing the funds from FD? How does the family safeguard their interest here?

2-      Vice versa, if the daughter has spent the funds and is willing to repay the family. But now the family is demanding an exorbitant amount which excludes the principal + interest the FD may have accrued after father in law’s death? Can the family now corner her on the basis of threats of criminal proceedings to recover the amount they demand? How does the daughter in law protect herself in this case?

 

 

 

 

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 1 Replies

Y V Vishweshwar Rao (Advocate )     16 April 2009

The Withdrawel of the amount  by Duaghter in law is not illegal , the same is as per the Postal Department Rules and Instructions at the time of openign the Account , at the most she has to account the same as per the Will Deed - or - the said vlaue can be adjusted in other properties as per the Will Deed . The thretenings are not  proer ! ! !


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