Redemption of jewels
HASANBASHA
(Querist) 19 February 2015
This query is : Resolved
Dear Sir,
One of my friend's mother ( I already discussed about her in a settlement deed issues ) recently lost her husband also, before his death he got some jewel loan from a cooperative bank and he was a account holder of that branch. He appointed his wife as a nominee for his account, she is almost 84 years old. She paid all loan amount with interest and tried to release the jewels with the death certificate from the hospital and receipt from the corporation for death certificate but the bank officials given long procedure that she has to produce death certificate, legal heir certificate, NOC from the legal heirs, indemnity bonds and 2 sureties from the government employers. we asked them, what is the purpose of appointing nominee? but they refused to release. Shall we file emergency suit against the bank? looking for your valuable advice. Thank you
ajay sethi
(Expert) 19 February 2015
nominee is only trustee of all legal heirs . hence bank is insisting on Noc from other legal heirs . comply with procedure prescribed by bank for release of jewels
Rajendra K Goyal
(Expert) 19 February 2015
Bank is right in asking for indemnity and other formalities. If you do not want to complete, move court for succession certificate which may take about one year and stamp fee based on the value of the jewelry.
prabhakar singh
(Expert) 19 February 2015
I would invite your attention towards the provisions of section 45ZA of the Banking Regulation Act.
To me it is HIGH HANDEDNESS of the BANK to refuse to pay or deliver to nominee unless
some claim via a succession certificate issued by court in some one else name,is already put before it.
A suit of declaratory relief under section 34 of Specific Relief Act with or without consequential relief as may be required under proviso to that section is your remedy unless depositors are treated members of the co-operative bank under their by laws.
I feel upon reading of Sub-sections (1), (2), (3) and (4) together its proviso of Section 45ZA of the Bank Act, nomination in writing in this Section by the sole or more than one depositor has the effect of testamentary disposition for limited purpose after death of the depositor or depositors and in order to help the Bank discharge its obligation as trustee of the same to the nominee the moment demanded. For this purpose Bank is not required to wait for production of Succession Certificate, Letters of Administration or Probate and it is free to hand over the money to the nominee on demand.
Guest
(Expert) 19 February 2015
A student's academic query. Good question for law students, but unlikely to be a real problem.
