Nomination
Querist :
Anonymous
(Querist) 18 February 2011
This query is : Resolved
A opened a saving account in a bank and nominated his wife B. Later a died and B claims for the amount. The Bank asked for succession certificate as amount is more than one lack.
While the deceased had filed nomination in favour of his wife, succession certificate from the competent court is required or not
Please advise.
Thanks,
B.S,Bhatnagar
Parthasarathi Loganathan
(Expert) 18 February 2011
As per nomination rules bank is supposed to discharge its liability to the designated nominee of the deceased by releasing the payment. Succession certificate should never be insisted. However, if there are other claimants by way of legal heirship, they can also sue the nominee for recovery on the basis of succession certificate and the bank will never be a party to the dispute.
Arvind Singh Chauhan
(Expert) 18 February 2011
I fully agree with the logic shared by Parth Sir. Here are two contradictory judgments on this issue-
Sec-372,6,7 & Hindu Succession Act 1956 Sec 8(2)- Claiming of nominee of deceased – maintainability- A settled legal principle is that the nomination is only the hand which accept the amount and a nomination does not confer any beneficial in the nominee- A mere nomination doesn’t have the effect of conferring to Nominee any beneficial interest in the amount payable under LIC- The property or the amount as the case may be claimed by heirs of deceased in accordance with law of succession governing them- SC-Uttaranchal Apex Decisions-2010(1)-151.
Nomination made by an employee or an account holder, only facilitates payment by the person, in whose custody the money is lying of the employee or account holder, by making payment to such nominated person on the contingency like death – for which the nomination was made- In other words it is a third party discharge, without going in to the controversy as to who is actually entitled to succeed the amount- In present case admittedly, the petitioner was nominated by deceased- In absence of change in nomination and in view of the said nomination- The petitioner was entitled for the dues of the deceased without prejudice to the right of the respondent No- 3- Departmental authorities accordingly gave direction to release the G.P.F to the petitioner on the basis of nomination of the deceased- Uttarakhand HC- Uttaranchal Apex decisions-2010(1)-409.
Amit Minocha
(Expert) 19 February 2011
the banks normally asks for the same to be on safer side and you would be required to produce the same
Querist :
Anonymous
(Querist) 19 February 2011
Thanks Mr.Parthasarthi,Kirti Kar, Arvind and Amit.In the present case the amount is around 20 lacs.The Nominee, the wife of the deceased is an old women and accompnied by her reletives and the behaviour seems suspious. In such a case I agree with Mr. Amit but how far it is legal to ask for a succession certificate from the nomonee.Mr.Parthasarthi has indicated that in such cases Bank should not be a party but practically bank have to face the cases.
In the present case the Bank is demanding sc for its safer side. Is there any law to defend Banks stand.
Thanks and regards,
B.S.Bhatnagar, Advocate
Kirti Kar Tripathi
(Expert) 20 February 2011
I that event, the best remedy for the wife to file writ petition seeking mandamus commanding the Bank to release the amount in her favor.
