Skip to main content

A nominee is only a Trustee holding the amount on behalf of the actual beneficiaries and does not have any vested right or interest in the same

In R.Saranya vs. The Manager, Life Insurance Corporation of India, during the life time of the deceased Ramakrishnan, he had taken two insurance policies with the first Respondent. He had been paying the premium till his death. As the first Petitioner is inexperienced and was not well-educated, her husband had appointed the second Respondent, who is his paternal uncle's son, as nominee in the said policies. However, after the death of the first Petitioner's husband, the second Respondent is trying to appropriate the entire insurance amount taking advantage of the nomination made in his favour. Though a legal notice was issued to the first Respondent, the first respondent has not yet settled the amount in favour of the Petitioners. Petitioner has sought this writ of mandamus before the Madras High Court, to direct the first Respondent to release the insured amount under two Policy proportionately in favour of the Petitioners. 

The prayer of the Petitioners was resisted by the first Respondent by filing a counter affidavit contending that, they have not acted anything detrimental to the interest of the beneficiaries and has not shown any undue haste in releasing the amounts under the policies. 

It is a well settled principle that, a nominee is only a Trustee holding the amount on behalf of the actual beneficiaries and does not have any vested right or interest in the same. 

As held by the Hon'ble Apex Court in Smt. Sarbati Devi and another vs. Smt.Usha Devi, when the nominee is only an authorised person to receive the amount and distribute in accordance with the law of succession, the second respondent, who is a nominee, cannot have any right over the said amount. 

It is also not in dispute that the Petitioners, under the law of succession, which governs them, are entitled to an equal share in the estate of the deceased. The Policy amount receivable is a part of the estate of the deceased and the Petitioners are entitled to equal share. 

The High Court therefore allowed the writ petition directing the first Respondent to release the insurance amount payable under the Policy taken in the name of the deceased, directly to the Petitioners

Comments

Post a Comment

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more

When debt is bona fide disputed and the defence is a substantial one, the court will not wind up the company

In SHITAL FIBERS LTD.  vs  INDIAN ACRYLICS LIMITED, as per the respondent, appellant had made a payment of Rs.61,83,218/­. However, there was an outstanding balance of Rs.8,92,723/­ as on 28.7.2008. Since despite repeated requests, balance amount was not paid, the respondent issued a statutory notice to the appellant. The same was duly responded to. As the payment was not made despite notice being duly served on the appellant, the respondent filed the aforesaid Company Petition seeking winding up of the present appellant for its inability to pay admitted debts. The learned Company Judge vide order dated 28.9.2015 admitted the Company Petition. However, while doing so, the learned Company Judge observed, that since the appellant was an on­going concern, an opportunity should be granted to it to settle the accounts with the respondent by 31.12.2015. Only in case of failure of the settlement, the citation was directed to be published. On appeal, the Division Bench of the High Cou...
Post a Comment
Read more

Abusing in-laws a ground for divorce: SC

Abusing in-laws and not allowing them to reside in the matrimonial home by a woman amounts to cruelty to her spouse, ground enough for grant of divorce, the Supreme Court has ruled while allowing an NRI's plea for legal separation from his wife. A bench of Justices Vikaramajit Sen and A M Sapre said such incidents could not be termed as "wear and tear" of family life as held by Madras High Court which had said that a couple must be prepared to face such situations in matrimonial relationship. The NRI had filed a divorce petition alleging that his wife was abusive to his family members and did not allow his parents and siblings to stay in his house when they visited the US. Referring to an incident, the husband told the court that his wife had once locked him and his sister out of the house and abused them saying they belonged to a 'prostitute family'. She refused to allow her sister-in-law to enter the house and even lodged a police complaint against her hu...
4 comments
Read more