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Iftikhar Ahsan (Indian Patent Agent)     18 September 2015

Award of money by a corporate company to the family (wife a

Hi All, I have a query regarding company law/corporate law/Muslim law in case of award of money by a corporate company to the family (wife and two girl child) due to sudden to death of her husband, who was employee of the private MNC corporate company. As per the companies’ policy, deceased family (If nominated by deceased in nomination form filled at the time of employment contract) will get a compensation in case of sudden case. However, in current case which I am sharing with all you, deceased could not mentioned any nominee (blank) in the FORM at the time of contract. Now the actual problem start here: Initially company was ready to transfer all award money to Wife and two girl children as per there ploicy . However, deceased Father has warned company to challenge and showed an old Indian case law wherein full money cannot me traversed to wife and two Girl Children. He said that money will be distributed equally in Wife, Children, Father and other relatives as per Muslim law. Now company is afraid of such action. The company now going to decide as per Muslim law. I need advice here if something could be done in this case and all money should go to Wife and children only as they are in very much need. Is there any case law in knowledge of you people where court has granted full compensation to Wife and children only (girl child)? Is company unnecessarily worrying about legal action by deceased father according Muslim law since as per company policy written, money should go to wife and children only? Will Muslim law prevails here over companies’ internal policy” Deceased Father is earning good amount pension whereas deceased wife does not have any mean to live and grow her children. Look forward to receiving you response as soon as possible. U can also forward it in another group. Regards

 1 Replies

Kumar Doab (FIN)     18 September 2015

First of all determine the deceased employee was a Shia or Sunni Muslim.

Usually company shall obtain legal opinion from its legal cell and obtain indemnuity from the family to protect itself from any onus in future.

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