1) mother was entitled to only dividends as it forms part of father estate
2) judgment of bombay high court is clear that on demise of owner shares would devolve on legal heirs
3) he purpose of the Companies Act is to consolidate the law relating to companies and certain other associations. It is not in any sense intended or directed to settled laws of succession or transfer of property, but only the law relating to companies.
4) in Shipra Sengupta v Mridul Sengupta & Ors. 19 Here again a claim was made on the basis of a nomination, the nominee contending that he succeeded, by virtue of that nomination made inter vivos, to specific movable property to the exclusion of heirs. Sarbati Devi20 was considered as was Khanchandani.21 Then the Supreme Court held:
17. The controversy involved in the instant case is no longer res integra. The nominee is entitled to receive the same, but the amount so received is to be distributed according to the law of succession. In terms of the factual foundation laid in this case, the deceased died on 8.11.1990 leaving behind his mother and widow as his only heirs and legal representatives entitled to succeed. Therefore, on the day when the right of succession opened, the appellant, his widow became entitled to one half of the amount of the general provident fund, the other half going to the mother and on her death, the other surviving son getting the same.
19. In view of the clear legal position, it is made abundantly clear that the amount in any head can be received by the nominee, but the amount can be claimed by the heirs of the deceased in accordance with law of succession governing them. In other words, nomination does not confer any beneficial interest on the nominee. In the instant case amounts so received are to be distributed according to the Hindu Succession Act, 1956.