17 September 2020
My father in law has deposited an amount in a local cooperative society on 24.12.14 and filed a nomination in favour of my mother in law.The society has accepted the nomination and registred the same in their system After death of father in law my mother in law claimed the deposit amount as nominee.But the society refused to pay the amount stating that the nomination was invalid as only name of the nominee is mentoned in the nomination.Copy of the nomination form has not been produced despite demand.A statement of account relating to the deposit shows that nomination has been registered. Can the Society go back on thier acceptance of nomination after 6 years?? Is there any proven case? Is there any provision in the law to help her? Plz guide me Dharmarajan
17 September 2020
Refusal to refund the deposited amount to nominee by society amounts not only deficiency in their services but also amounts to their unfair trade practice. Nominee should approach to Consumer Forum having jurisdiction and claim deposited amount along with compensation towards mental and physical agony.
18 September 2020
The refusal of the Co-operative Bank concerned is unfair, unjust and illegal. The registered Nominee is entitled to receive the amount as per the Nomination filed by the account-holder and registered by the Bank irrespective of whether other family members are excluded or not. Moreover, there is no legal mandate that while registering Nomination for Bank account all legal heirs are to be nominated. It is not for the Bank to find out as to who are the legal heirs of the deceased account-holder while disbursing the amount to the registered Nominee as per the duly registered Nomination available in their record. Once the nomination is registered in the Bank account, it is imperative for the Bank to disburse the amount to the Nominee concerned and by doing so, the Bank is discharged of all its liabilities in this regard. However, it will be pertinent to note that as per the settled law, by mere receipt of such amount, the Nominee will not become the sole owner of the the same but all legal heirs of the deceased will have their claims for the same from him/her unless there exists any other valid document like the "Will" executed by the deceased in favour of the Nominee concerned for the same. In other words, nomination merely amounts to an authorisation to the Nominee to receive the fund from the Bank .
In the instant case, either the Nominee can directly give a written request to the Bank stating that if Bank fails to make payment, he/she will be constrained to resort to legal actions at the entire risk and cost of the Bank or take the help of a local lawyer.