nominee in case of co op society
Querist :
Anonymous
(Querist) 19 February 2010
This query is : Resolved
Is the nominee of a flat in co-op society mere trustee to act on behalf of legal heirs or he is the sole owner, if the original owner who nominated him dies without a will?
Is this also true in case of bank fd and shares?
Parveen Kr. Aggarwal
(Expert) 19 February 2010
The position of a nominee was finally settled by the Supreme Court in the case of Sarbati Devi Vs. Usha Devi (AIR 1984 Supreme Court 346). In this case, a person insured his life and appointed his wife Usha Devi as nominee to receive the sum assured on his death. Sometime later he died, leaving behind his wife, son Ashok Kumar and mother Sarbati Devi as his nearest legal heirs. On the strength of the nomination, Usha Devi claimed absolute right to the sum assured to the exclusion of the other two heirs i.e. the son and the mother of the deceased. The Supreme Court dismissed her claim holding "a mere nomination made under Section 39 does not confer on the nominee any beneficial interest in the amount payable under the life insurance policies on the death of the insured." The Court further observed that the nomination only indicates the hand, which is authorized to receive the amount. The amount, however, can be claimed by the heirs of the assured in accordance with the Law of succession governing them.
