Pf claim of deceased
Chitra
(Querist) 16 December 2013
This query is : Resolved
Hello Sir,
My mother is listed as the NOMINEE for PF claim in records at my brother's organization.
My sister-in-law either knowingly / or not knowing this fact has filed a request for PF claim at EPFO office.
Since my mother is listed as NOMINEE but only because she hasn't yet filed any claim, would it allow the PF authorities to grant the settlement in favour of his my sister-in-law?
I am aware it is not possible as name of nominee is listed but I am being urged to file the request to avoid any hassles.
Additionally, once my mother eventually receives the settlement money how can she avoid her spouse from claiming for share as she has already confiscated my brother's valuable matierial possessions (car, bank balance, household items etc) and left my mother empty handed? My mother is illiterate, aged and widow with no source of income so how can she enjoy full ownership of this PF money? Please advise urgently.
Thanks a lot
Chitra
BAALASUBRAMANNYAMM
(Expert) 16 December 2013
Irrespective of all other things, your mother, where she was listed as a "nominee" of your brother, should be entitled for PF and all other benefits if any(in case, if she nominated her in other benefits also) that too to be received from your brother's organization.
Chitra
(Querist) 16 December 2013
Thanks a lot Bala Sir for your prompt response. While I understood that the PF claim will reach the nominee's hand safely but can the spouse still claim a share later by putting a legal case or my mom will be entitled to keep the whole amount with her? (note : i was informed unlike property, one cannot claim rights over any other such benefits, is it true?) Thanks in advance.
Chitra
(Querist) 16 December 2013
Thanks a lot Bala Sir for your prompt response. While I understood that the PF claim will reach the nominee's hand safely but can the spouse still claim a share later by putting a legal case or my mom will be entitled to keep the whole amount with her? (note : i was informed unlike property, one cannot claim rights over any other such benefits, is it true?) Thanks in advance.
Rajendra K Goyal
(Expert) 16 December 2013
Under the provident Fund Act,
Each member has to make a nomination to receive the amount standing to his credit in the fund in the event of his death. If he has a family, he has to nominate one or more person belonging to his family and none other. If he has no family he can nominate any person or persons of his choice but if he subsequently acquires family, such nomination becomes invalid and he will have to make a fresh nomination of one or more persons belonging to his family. You cannot make your brother your nominee as per the Acts.
While replying the question Whether the "nominee" has absolute title to the Provident Fund Amount lying to the credit of the deceased employee by virtue of his nomination under the Provident Fund Scheme i.e. Employees' Provident Funds Scheme, 1952.
Bombay High Court in the case Nozer Gustad Commissariat vs Central Bank Of India & Ors. on 2 December, 1992 (Equivalent citations: 1993 (2) BomCR 8, (1993) 95 BOMLR 4, (1993) IILLJ 98 Bom) Held:
“it would follow that the use of the word "vest" in Section 10(2) of the Act merely meant that the nominee is merely entitled to collect the amount for benefit of heirs of the deceased coupled with exemption thereof from attachment and subject to category of heirs being restricted as specified in Provident Funds Scheme”
prabhakar singh
(Expert) 16 December 2013
As a nominee your mother as sharer has right only to retain her share of money not that of other sharers.
It appears your brother died intestate living behind your mother and his spouse as widow,so both are entitled in equal ,that is 1/2 each,in the estate left by your brother.
After receiving money your mother should herself evaluate car, bank balance, household items and other properties and should file a case for her excess share, if any,in hands of your brother's widow.
prabhakar singh
(Expert) 16 December 2013
It is only shares of which ownership vests in nominee due to clear cut provisions of companies' Act.
Chitra
(Querist) 16 December 2013
Thank you Mr Prabhakar & Rajendra ji for your invaluable inputs. Indeed my mother had never intended to clasp the whole amount but my sister-in-law confiscating ever single possession of my brother has left her devastated and here I am fighting a battle against my own fraternity to safeguard the rights of my mother.
Your input regarding evaluation and filing a case for excess share is very valid but my mother wouldn't probably want to pursue it until and unless she causes anymore inconvenience.
Chitra
(Querist) 16 December 2013
Since I can foresee this case may drag further in future, I have another property related query which possibly may pop up.
Our existing house was acquired by my father (joint loan alongwith my eldest brother, while the payments were made by my father only).
My father due to some personal problems sold the property to his best friend while we continued to stay in this property. While purchasing it back from his friend my mother got it registered in eldest sons name this time. After he expired, he left behind his widow wife and son. Since my brother didn't write any will, it was established that my widow bhabhi, his son and mother would be the 3 legal heirs. My widow bhabhi willfully signed a relinquishment deed to release her 1/3rd share in 50-50 ration to my mother (i.e. her MIL) and her son. So as on date it is my mother and nephew who are holding 50:50 share on this property. We are all now staying under same roof without any hassles. With my mother's consent my elder sister-in-law has constructed a flat (above the existing property) with her husband's last settlement. The agreement is such that once my nephew turns 18, he will release the 50% to my mother and she will solely enjoy the whole property. Similarly the above newly constructed flat will be owned either by my eldest SIL or her son (as they feel comfortable).
Talking about this second daughter-in-law of my second brother (the one who took away all his belongings) is having no kid.
I have a third brother residing at UK with his wife and no kids so far. I am the only daughter presently taking care of my family both emotionally & financially in absence of my father and brothers.
My mother would have LOVED to amicably resolve any issues arising and rightfully distributed the share to all legal heirs however the unwarranted actions from her second daughter in law has left her shattered and confused as well.
Can my second sister-in-law (in absense of a child) claim rights in this property? She is well educated and can earn well too. Also she is not in favour of staying with my mother under the same roof as well.
Please advise what shall be my mother's course of action (if any) to safeguard her interests and rights esp because she has no source of regular income (from pension)
I am expecting her to enjoy just a peaceful life as she has already undergone deep trauma after losing her husband and two sons.
Its a long query but I would highly appreciate your patience and time for providing some guidance on this matter. Thanks a lot in advance.
Sudhir Kumar, Advocate
(Expert) 16 December 2013
How are you sure that your mother was nominee?
whwther the nomination was before or after marriage?
