The LIC and establishment with which PPF a/c was opened can pay the nominee and be free from IT’s responsibility.
The legal heirs can claim from nominee.
The spouse (wife) is legal heir and can also approach court to pay her share.
If LIC, establishment with which PPF a/c was opened has been instructed by court not to pay nominee then IT shall wait till court passes the order.
The legal heirs can compromise the matter and appraise the court and request to pay the legal heirs the share and court can advise the establishments accordingly..
Rest discuss in person with your own very able senior LOCAL counsel of unshakable repute and integrity specializing in testamentary/civil matters and having successful track record ….. and worth his/her salt …