Transfer of Balance to legal heirs

Querist : Anonymous (Querist) 01 November 2010 This query is : Resolved
Our father expired leaving Rs 8.00 Lakhs in his fixed Deposit and saving account. He has not made any nomination and has 6 children. One of his children is refusing to sign the claim form and without the signature of all children Bank is not accepting the claim form. What is the remedy now. We have requested the Bank to release the amount proportionately to all claimants who have signed and credit their account but Bank is not accepting this request and also not paying any interest on fixed Deposit as it is not renewed.

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R.Ramachandran (Expert) 01 November 2010
The action of the bank is totally wrong. Write to the Vigilance Cell of the Bank.

Parthasarathi Loganathan (Expert) 01 November 2010
Sorry Mr.Ramachandran. This time for a change you are caught on the wrong foot. Banks cannot settle the claim in proportionate amounts to the legal heirs. Since one of the legal heir is refusing to sign the claim discharge documents, they are required to apply for succession certificate based on which court decides the share. However, since it appears to be a family dispute and refusing to sign by one of the legal heir is attributed to the fact that his primary motive is to bar the other claimants to enjoy the fruits. Hence, he need to be convinced by the family sources (relatives or friends) and simplify the process by obtaining legal heir ship certificate based on which bank can settle the claims to one of the legal heir through a Consent letter from other legal heirs. Author must be patient enough to wait for resolving the family disputes than putting blame on the bank for non-settlement. Bank's decision is absolutely right. I have also come across several such claims which was amicable resolved based on this advice.

R.Ramachandran (Expert) 01 November 2010
Dear Mr. Partha,
My understanding is, once there is a legal heir certificate, the bank is supposed to give the balance proportionately to all who ever comes forward and gives a discharge for their share. Am i wrong, correct me please.

Arun Kumar Bhagat (Expert) 01 November 2010
I agree with Parthasarathi Loganathan.

Parthasarathi Loganathan (Expert) 01 November 2010
Dear Mr.Ramu, Part settlement of deceased claims is prohibited by Regulatory authorities as it would envisage several legal complications. Why should banks get into trouble for internal dispute in a family.

adv. rajeev ( rajoo ) (Expert) 01 November 2010
It is better to file a suit for partition against the brother who is opposing, so everything will be cleared and bank will be in a position to release the amount.

s.subramanian (Expert) 01 November 2010
Mr.Loganathan is absolutely and perfectly right. The claimants can approach a court of law and seek a direction to the bank for the partial release of their shares. The bank,as rightly pointed out by Mr.Loganathan, cannot make such partial disbursement at all.