Facts

Appellant, who was the nominee in the bank account held by his deceased mother,  was claiming full rights over the money in that account, to the exclusion  of the Respondent, his full brother.

Issue

Whether the nominee in a bank account held by a deceased depositor is the owner of the money in the said account.

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Section 45ZA(2) of the Banking Regulation Act 1949 puts the nominee in the shoes of the deceased depositor and gives him the exclusive right to receive the money in the account. It gives him all the rights of the depositor so far as the account is concerned. It does not  make  the  nominee the owner of  the  money in the account. The money receivable by the nominee would form a part of the deceased’s estate and devolve according to the rule of succession that governs the depositor.

Held

High Courts order dismissing the Appellants claim was upheld and the appeal  was accordingly dismissed. (CA No. 1684 of 2004dt. 6-10-2010)

Editorial: Ratio helps clarify the rights of the nominee in relation to the bank account and the money lying in it. The principle however may not have universal application and has to be applied w.r.t the statutory provision under which the

| Allied Laws – 22. Banking Regulation Act, 1949 |

nomination is made. In the case before the  Supreme court decided under the  WB CS Act, the court held that the nominee was the successor to the estate in question. (Also refer nomination by policy holder under Insurance Act, 1938, Shreya Vidyarthi v. AshokVidyarthi AIR 2016 SC 139/MANU/SC/1465/2015.

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