There is one man having a fixed deposit account in the Bank. He is married and his wife is the legal heir. He has nominated his sister as the nominee for the said fixed deposit. He died after few years and after his death his sister appoached the Bank and claimed the fixed deposit money being the nominee. When her claim was in process the wife approached the Bank and claimed the fixed deposit amount and submitted the letter to that effect to the Branch Manager. The branch manager informed her about the nomination and said he cannot help her. After completing the formalities Bank paid the Fixed deposit amount to his sister. After some days the bank informed the wife that they have paid the money to his sister. The wife filed the suit against the Bank for payment of fixed deposit amount. Bank contended in the court that they have paid as per nomination and as such discharged from liability.
Please let me know what is the position of the wife in the above case. Is she correct in arguing that the Bank should not have gone ahead in making the payment to the nominee (sister)
Kindly suggest some case laws to back up my answer.