Nominee is only trustee for legal heirs
2) if you have obtained succession certificate from bank consent of nominee is not required
PPF Account ownership
My father had a PPF Account and it has a nominee registered. But as there is no mutual understanding between My mother & me with nominee & thus we are proceeding for succession certificate. But is bank right in asking for consent from nominee irrespective of succession certificate issued to us? Though Nominee only is a trustee or caretaker on what basis can nominee object ? Also can't we take action action against bank even after submiting succession certificate?
Asked 4 years ago in Property Law
Religion: Hindu
9 Answers
The bank is liable to pay the nominee in case the person dies. Now the nominee is a trustee and nothing else. You should file a succession certificate in order to obtain your share.
Yes we already have a provisional order and will receive the final order in few days.
Asked 4 years ago
Yeah that is ok. Once you obtain a succession certificate then you are entitled to the proceeds.
Furnish succession certificate to bank
You can issue a legal notice to the bank asking for the reasons to demand NOC once a succession certificate has been deposited with them along with the claim form.
You can very well quote the relevant laws stating that the nominee is just a trustee to receive the amount and disburse the same to the successors in interest, hence the bank is not entitled to insist on NOC from nominee in this situation.
If the bank is still insisting on this you may either approach banking ombudsman for relief or consumer forum for releif, remedy and compensation for deficiency in service.
The provisional order is not the proper or authentic document hence the bank can very well insist on the procedures that are to be followed by them hence you may obtain the final order and then proceed as suggested.
there is no need to take any consent from the nominee
as a nomination is registered the bank can simply release the funds to the nominee and get a valid legal discharge
then it is for the succession certificate holder to follow the nominee for return of the money and if he does not then the SC holder can file a suit against him
however please note that if the nominee is a legal heir of the deceased then he can always deduct his share from the funds and he would be accountable only for the balance
you must have filed a petition for succession certificate
in that petition you can file an interim application and make the bank and the nominee as party respondents and request the court to direct the bank to not release the funds to the nominee and that the funds be directly released to the SC holder since the certificate is not challenged by anybody and is validly granted by the court
If a succession certificate is duly obtained from a competent court, the bank has to obey the court order. If there is any refusal, the bank will be held in contempt of court. Make a written demand based on the court order, first. Ask the bank not to pay the nominee in view of the succession certificate obtained.
- If there is nominee in the account, then the bank will pay the amount to the nominee, just after submitting certain proofs of his identity.
- A nominee is not essentially the legal heir of the deceased . A nominee and legal heir can be different individuals.
- Further, if there is no nominee, legal heirs become eligible to get the amount from the deceased account.
- Further, if there is dispute, then the bank may ask for Succession certificate from the court, and for getting the this certificate and direction to receive the amount.
- Hence, you can send a notice to the bank to stop the payment without a succession certificate .
