I would hasten to add that the proposition as above may be appropriate in respect of a bank account, an employer can afford to take, and in my considered opinion, ought to take a more pro-active view.
The relation and interaction between a bank and its customer is more or less impersonal. Moreover, except in rare cases, the stakes involved in handing over the funds to the nominee of the customer who has passed away is not substantial.
But not so the relation between an employer and the employee. And the stakes involved are critical in as much as the benfits payble to the past employee constitute, in most cases, the only means for the widowed lady and the children to survive. The extant rules governing PF and pension mandate that the nominations are invalid once the employee acquires a family. And, parents could be considered to be "family" only if they are dependent on the deceased employee. Moreover, the father of the deceased employee is not among the Class I legal heirs.
As such, in my considered view, it would be poor and lazy HR policy for the employer to disburse or pass over the benefits to the nominee and advise the distraught wifeof the deceaed employee to indulge in litgation with the adament father-in-law.