Nominee is nothing but a mere custodian of that movable asset of the deceased and therefore the Nominee doesn't have the same right as that of legal heir . The nominee is appointed, to ensure that the subject matter of the nomination is protected, until the legal heirs or legal representatives of the deceased take appropriate steps by applying the Succession Certificate in respect of the movable assets of that deceased person. Nowadays many Financial Institutions prior to disbursement of the sum following the Hon'ble Court's verdict ask the Nominee to submit Succession Certificate.
'Nominee" was brought into existence to get the claims from institutions settled immediately. Before the enactment, it used to take years together to get a settlement from the Bank. Now banks get protected and making payment to the nominee in due course absolves them from all responsibilities
In earlier threads, this has become a 'burning topic" as to whether nomination becomes a settlement like a will etc. and there were conflicting judgments.