That HC judgement pertains to "movable" property (stock security held in demat a/c) and nowhere the judgement says that Nomination under Demat rules will over-ride the HSAct.
Under the H.S.Act, the legal heir may always challenge the nominee and claim his legal heirarcy via a procedure called as a Succession Certificate.
Nomination can be made favouring anybody, it may be your neighbour, your local politician, the local leper beggar or anybody. There is no restrictions. But do the nominees derive the right to the estate of the deceased = A BIG NO.
Would the Nomination facilities under the various Acts over-ride the provisions of the Hindu Succession Act = A BIG NO.
Would the anscestral properties be allowed to be succeded via a nomination to the lone-one-legged beggar outside the mandir = A BIG NO.
IF AT ALL the above answers were to be in YES, ... THEN there would have been no need for a "WILL", nor the need for execution & administration of the will, nor the need for the will to be probated, since a 4 decade old nomination paper would be sufficient enough to truncate out the legal heir's succession rights as guaranteed under the HSAct.
Typically the need for contesting a forged or genuine will could also not arise, since their is no provision to challenge the nomination papers.
Nominee is only authorised to receive and hold the properties. Nominee cannot be a third mode of succession, can never be a beneficiary, cannot be a heir or a legatee and hence cannot override the HSAct.
NOMINEE = TRUSTEE ON HOLD indefinetly.
IF their are no claimants and no legal heir left to the estate of the lone deceased AND if the deceased has made a nomination to the local chai-wala... Would the estate devolve to the chai-wala ... IF YES, THEN ultimately to whom the chai-wala (trustee-on-hold)) would pass on the legacy. NO. NOT POSSIBLE. The estate of the deceased would automatically devolve to the State Govt (u/s 29) and not to anybody else (including the nominee).
NOMINEE NO RIGHTs :
check out : Smt.Sarabati Devi & anr vs. Smt.Usha Devi
SC judgement date : 06/12/1983
SC bench : Venkataramian E.S.(J) & Misra R.B (J)
Keep Smiling .... Hemant Agarwal