Section 45ZA clearly provides that where a deposit is held by a BankingCompany to the credit of the depositor, he can also make a nomination in a prescribed manner in favour of any particular person to whom the amount is to be paid in the event of his death. Sub-section (2) of the above section further pro- vides that in case of the death of the depositor all rights of the depositors in relation to the deposit shall be acquired by the nominee.
5. In the instant case, it is not disputed that the petitioner is the nominee in respect of the deposits. In case Hira Lal the original depositor was alive, he could have withdrawn the deposits made by him. The only condition would have been that he could not have been given full interest on the said deposits. The petitioner being the nominee is also entitled to withdraw the amount before maturity. The Bank of course is entitled to change the rate of interest mentioned in the fixed deposit receipts if the amount is withdrawn before maturity. The refusal by the Bank to permit withdrawal before maturity is wholly arbitrary.
Allahabad High Court
Smt. Parvati vs Central Bank Of India And Another on 8 August, 1989
Equivalent citations: AIR 1990 All 103