Deceased bank a/c with nominee

Querist : Anonymous (Querist) 20 January 2012 This query is : Resolved
One of my friends father deceased and he is having a/c with bank and while his father was alive he nominated his 2 nd son as his nominee.
The balance in the a/c is Rs.5.50 lacs.
Now the 1 st son issued a legal notice to the Bank for not to settle the claim in favor of 2nd son stating that, the balance in the a/c is of sale proceeds of agriculture lands of their joint family.
What is the remedy available for my friend i.e 2nd son and the nominee of the a/c.?

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ajay sethi (Expert) 20 January 2012
nominee is only a trustee . since your father did not leave behind a will the money lying in account has to be distributed among leagl heirs . reach a settlement with your brother .

Deepak Nair (Expert) 20 January 2012
But, I don't think bank is concerned with the source of money.

As the second son is the nominee, the amount can be released to the second son.

If the first son wants to claim the money, then he shall claim by filing a suit and not issuing a notice to the bank.

MY COMMENT IS BASED ON LOGIC AND NOT ANY LEGAL POINT OF VIEW.
I REQUEST THE QUERIST TO WAIT FOR FURTHER CLARIFICATION FROM MR.AJAY AND OTHER LEARNED EXPERTS.

Saibal Guha Roy (Expert) 20 January 2012
Nomination is a facility in the Banking system for distribution of the balances lying in the account of a deceased customer, without having to produce a succession certificate. IT DOES NOT MEAN THAT THE MONEY IS THE FOR THE SOLE BENEFIT OF THE NOMINEE. THE NOMINEE HAS TO DISTRIBUTE SUCH MONEY TO THE LEGAL HEIRS AS PER Hindu Succession Act. In this case, the 2nd son cannot claim the money as belonging to him only.

Advocate M.Bhadra (Expert) 20 January 2012
If an objection filed then the Bank have should pay both sons and wife(if alive)of the deceased,nominee can take only on behalf of the all legal heirs and successors , or bank can direct to the legal heirs to obtained a Succession Certificate from the Court.So,settle the matter amicably.

Devajyoti Barman (Expert) 20 January 2012
rightly guided, do as advised.

Guest (Expert) 20 January 2012
yes, i do agree with the experts comments that it is not a concern of bank to think about the source of money the bank rule direct and authorise the nominee holder the receive the balance amount on behalf of deceased a/c holder.

rest if u feel any problem, feel free to contact me and discuss the matter.

Manoj Kumar,
Advocate,
Delhi.
Ph: 09310443650
advocates.agra@gmail.com

Deepak Nair (Expert) 21 January 2012
I still believe that the bank is not answerable to any such notice from the elder son.

Wwe cannot expect the bank to distribute the money to all the legla heirs in proportion. The bank can release the amount to the second son.

It is the responsibility of hte second son to distribute the money and we cannot hold the bank responsible for that.

prabhakar singh (Expert) 21 January 2012
What is the remedy available for my friend i.e 2nd son and the nominee of the a/c.?

HE SHOULD STAND GENTLE AND SHARE THE MONEY 1/2 AND 1/2 WITH HIS ELDER BROTHER BECAUSE HE IS LEGALLY OBLIGED TO DO SO AND ENFORCEMENT OF RIGHT BY 1ST SON BY COURT OF LAW SHALL MAKE YOUR FRIEND LIABLE TO BEAR THE COST OF LITIGATION ALSO AND THAT SHALL MAKE YOUR FRIEND POORER BY AT LEAST 1 LAKH.

IF YOU ARE SO CONCERNED FOR WELL BEING OF YOUR FRIEND ADVISE HIM ONLY THIS MUCH.

ajay sethi (Expert) 21 January 2012
deepak
bank does not give account proceeds to nomineee without obtaining NOc from other legal heirs . if any legal heir objects banks tell the nominee obtain succession certificate . always advisable to sellt mutually with other legal heirs

Advocate. Arunagiri (Expert) 21 January 2012
The nominee becomes the owner of the bank account after the demise of the principal.

The nominee is having all such rights and powers to operate the account. If no such rights is available for the nominee, then what is the meaning of the nomination.

At the same time, he is answerable to the legal heirs.

But, the bank can not stop the nominee from operating the bank account. The bank ought to ignore the notice from a third party to the account.

vasant kulkarni (Expert) 21 January 2012
AS PER THE BANKING REGULATION ACT,THE REGISTERED NOMINEE ONLY WILL GET THE MONEY AS A TRUSTEE OF FUNDS.BANK IS UNDER LEGAL OBLIGATION TO DO SO.BANK IS NOT BOUND BY THE NOTICES OF LEGAL HEIR.
HOWEVER THE LEGAL HEIRS CAN PROCEEDS AGAINST THE NOMINEE TO CLAIM THEIR SHARE,AFTER THE PAYMENT TO NOMINEE.

NOMINATION IS ALWAYS IN FAVOUR OF (ONE) INDIVIDUAL ONLY.THE BANK HAS NO RIGHT TO DIVIDE THE AMOUNT IN THE DECEASED'S A/C.