court can direct bank to deposit money of deceased for distribution to legal heirs inspite of nomination

With regard to the first point, this Court in a Judgment reported in MANU/GH/0183/1997 : 1998 (2) GLT 350 in the case of Smt. Sunita Shambhu Shirodkar v. Shri Madhukar Lotlikar & Ors. has held that the nominee does not step into the shoes of the legal heirs merely on account of his nomination by the depositor. The provisions of Section 45ZA of the Banking Regulations Act relied upon by the learned Counsel appearing for the Respondent No. 1 have also been taken into consideration whilst coming to the conclusion that even though the nominee may have a right to recover the amounts from the Bank, nevertheless, it is always open to the Court to direct such amount to be deposited in the Court for distribution among the legal heirs. The learned Single Judge of this Court has observed at Paras 10, 11, 12 and 13 thus :

"10. Now as far as the State of Goa is concerned, the law of succession which is in force in the State provides that where any person dies without disposing of his properties, or disposing only a part thereof, or having made the disposition, the will is annulled, revoked or lapses, all legal heirs shall have the said properties or part thereof, in respect of which the testator has not made any disposition. The provisions in this regard are found in Article 1968 of Portuguese Civil Code. The order of legal succession is firstly to the descendants, then to the ascendants, followed by brothers and their descendants, then surviving spouse, then to the collaterals and lastly to the State as is provided in Article 1969 of the said Code.

11. Applying the law laid down by the Apex Court in the above referred matter and considering the provisions of the law of succession in force in the State as also the provisions contained in Section 45ZA of the said Act, it is clear that whenever a depositor appoints his nominee and the depositor dies before the maturity of the fixed deposit for release, the nominee so appointed would certainly be entitled to collect the amount payable on such fixed deposit amount on its maturity for release. However, that would not take away the right of the legal heirs of the deceased depositor from claiming right to the amount standing to the credit of the deceased depositor in accordance with the provisions of law of succession in force. This is so because a nominee is merely a representative of the lawful successor of the deceased depositor to receive the payment on the maturity of the deposit for release. The nominee does not step in the shoes of the legal heirs merely on account of nomination by a depositor.

IN THE HIGH COURT OF BOMBAY AT GOA

Second Appeal No. 49 of 2016

Decided On: 15.03.2017

 Vishwanath Yadav and Ors.Vs. Kashinath Yadav and Ors.

Hon'ble Judges/Coram:

F.M. Reis, J.

Citation: 2017(4) MHLJ 162,AIR 2017 Bom 258