regarding nomination

Advocate

Dear Dr. Ramani Sir. Regarding your query why nomination should not have the same weightae as a will, I may venture to clarify that the basic intention of nomination as provided in various Acts is to provide for a quick settlement of claims in the event of death of the Nominator. It only provides for the person to whom the sums belonging to Nominator should be paid without scalling for any legal documents such as succession certificate etc. Hence nomination does not have the same effect as will. 

 
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Scientist/Engineer

My question as the person who nominates has the authority to write a will why a nomination could not be raised to the status of a will.

"the basic intention of nomination as provided in various Acts is to provide for a quick settlement of claims in the event of death of the Nominator. It only provides for the person to whom the sums belonging to Nominator should be paid without scalling for any legal documents such as succession certificate etc. Hence nomination does not have the same effect as will." 

Which law says the above?  Only judgments say that.and lawyers get into the mindset that nominations are not will. There must be a thorough public debate on the subject.

All acts of legislatures appear in the form of bills introduced in the legislature. Bills can be obtained from the respective Government presses. Bills give explanation, reasons and intentions of each clause in the Act. Which bill of which act says that the intention of nomination clause is only to appoint a temporary care taker?

 
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Scientist/Engineer

I am the nominee and I am also the sole beneficiary under the will. The insurer will pay the amount to me as nominee. The will need see the light of the day only if the payment to me is contested.

 
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Dy Director

Originally posted by : SIVARAMAPRASAD KAPPAGANTU
The nomination is not a Will of the deceased. Nomination is in the nature of a Trust, where the nominee is appointed as Trustee to dispose of the estate of the deceased.  In the instant case, Wife has every right to contest and seek to share inthe estate of the Deceased. Further, Banks or ESI/PF authorities do not settle the amount once the matter is contested.  However, Wife has to produce proof of her being the wife of the Deceased and other documents as called for by the authorities concerned relating to Claim Settlement.

 

I repeat to reiterate that the Nominee gets no better title than the Survivors of the Deceased. He is only a Trustee in which capacity it is his/her "responsibility" to dispose of the assets equitably as per the norms applicable to the Succession Act applicable to their Religion.

 

 

Not in case of nomination of PF & ESI.

 
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After all the twists and turns in the discussion, what is ultimate suggestion or clarification to the person who posed the question in the first place to the forum? Or everybody reserves to their versions of "opinions"! My suggestion, I already gave more than once. Have a family settlement and all together file a claim with the authorities concerned. Don't think of litigating the matter as it's not only time consuming, frustrating, but also counter productive.
 
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Retired employee.

According to my knowledge the Nomination act and stipulations are to the organization to avoid the headache of litigation and directions to the organization that if they pay according to the nomination, they have performed their duty and obligation to their consumer as per law.  The enactment was to avoid unnecessary litigation on such payment and to cut down the settlement in the easiest way.

 

 
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GLN Prasad garu, Yes. Well said. Law presumed the Nominee to be honest and equitale and based on that absolced all organisations from futile(for such organisations) litigations.
 
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Dy Director

Originally posted by : Sudhir Kumar



Originally posted by : SIVARAMAPRASAD KAPPAGANTU



The nomination is not a Will of the deceased. Nomination is in the nature of a Trust, where the nominee is appointed as Trustee to dispose of the estate of the deceased.  In the instant case, Wife has every right to contest and seek to share inthe estate of the Deceased. Further, Banks or ESI/PF authorities do not settle the amount once the matter is contested.  However, Wife has to produce proof of her being the wife of the Deceased and other documents as called for by the authorities concerned relating to Claim Settlement.

 

I repeat to reiterate that the Nominee gets no better title than the Survivors of the Deceased. He is only a Trustee in which capacity it is his/her "responsibility" to dispose of the assets equitably as per the norms applicable to the Succession Act applicable to their Religion.





 

 

Not in case of nomination of PF & ESI.

 

 

My assertion is based on section 5 of  Provident Fund Act 1925

 

5.Rights of nominees

.– {Subs.by Act 11 of 1946, s.2, for the original sub-section} [(1) Notwithstanding anything contained in any law for the time being in force or in any disposition, whether testamentary or otherwise, by a subscriber to, or depositor in, a Government or Railway Provident Fund of the sum standing to his credit in the Fund, or of any part thereof, where any nomination, duly made in accordance with the rules of the Fund, purports to confer upon any person the right to receive the whole or any part of such sum on the death of the subscriber or depositor occurring before the sum has become payable or before the sum having become payable, has been paid, the said person shall, on the death as aforesaid of the subscriber or depositor, become entitled, to the exclusion of all other persons, to receive such sum or part thereof, as the case may be, unless—

 

(a) such nomination is at any time varied by another nomination made in like manner or expressly cancelled by notice given in the manner and to the authority prescribed by those rules, or

 

(b) such nomination at any time becomes invalid by reason of the happening of some contingency specified therein,—

 

and if the said person predeceases the subscriber or depositor, the nomination shall, so far as it relates to the right conferred upon the said person, become void and of no effect:

 

     Provided that where provision has been duly made in the nomination in accordance with the rules of the Fund, conferring upon some other person such right in the stead of the person deceased, such right shall, upon the decease as aforesaid of the said person, pass to such other person.]

 

     (2) Notwithstanding anything contained in {Subs.by Act 35 of 1950, s.3 and Sch.II, for "the Succession Certificate Act, 1889"} [the Indian Succession Act, 1925 (39 of 1925)], or the Bombay Regulation VIII of 1827, any {Subs.by act 11 of 1946, s.2, for "such person shall, on the death of the subscriber or depositor, be entitled to the grant of"} [person, who becomes entitled as aforesaid, may be granted] a certificate under that Act, or that Regulation, as the case may be, entitling him to receive payment of such sum or part, and such certificate shall not be deemed to be invalidated or superseded by any grant to any other person of probate or letters of administration to the estate of the deceased.

 

 

 

     {Ins.by s.2, ibid.} [(3) The provisions of this section as amended by sub-section (1) of section 2 of the Provident Funds (Amendment) Act, 1946 (11 of 1946), shall apply also to all such nominations made before the date of the commencement of that Act:

 

     Provided that the provisions of this section as so amended shall not operate to affect any case, in which before the said date any sum has been paid, or has under the rules of the Fund become payable in pursuance of any nomination duly made in accordance with those rules.]

 
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Sudhaar Kumarjee, All this okay. Based on all this gnan, what is your advice, suggestion or recommendation to Mr. Prakash who posted his query to the members of this forum. I am afraid, the discussion has become like the famous joke about Company Law, "Kuppuswamy Made Difficult"
 
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