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1984 Supreme(AP) 418

Andhra Pradesh High Court
Judges : M.JAGANADHA RAO, P.RAMACHANDRA RAJU
Shaik Dawood - Appellant
Versus
Mahmooda Begum - Respondent
Decided On : 11-06-84

The nominee of a provident fund has only the exclusive right to receive the fund. The provident fund remains the property of the deceased subscriber and is available for distribution amongst his heirs in accordance with their personal law.

Headnote:

PARTITION SUIT - PROVIDENT FUND - NOMINEE - RIGHT TO RECEIVE - OWNERSHIP - INSURANCE POLICY - NOMINATION - RIGHT TO RECEIVE - OWNERSHIP - WORKMEN'S COMPENSATION - DISTRIBUTION - JURISDICTION OF COMMISSIONER - A. P. STATE EMPLOYEES BENEFIT FUND RULES - PAYMENT TO NOMINEE OR LEGAL HEIRS - GRATUITY UNDER A. P. LIBERALISED PENSION RULES - PART OF ESTATE - INHERITANCE.

Fact of the Case:

The suit was filed for partition of the properties belonging to the estate of one late S. M. Ghouse, who died on 9-1-1979, due to a fatal accident, while working as a Lineman in the State Electricity Board at Siddipet.

Finding of the Court:

The court held that the nominee of a provident fund has only the exclusive right to receive the fund. High rights are the seams as that of a nominee under S. 39 of the Insurance Act. The provident fund remains the property of the deceased subscriber and is available for distribution amongst his heirs in accordance with their personal law. The Supreme Court decision in Sarbati Devis case (AIR 1984 SC 346) (supra) governs nominations made, in respect of provident funds as well.

Issues: 1. Whether the amounts mentioned in the plaint schedule are the matruka and liable for partition. 2. Whether the personal law of plaintiffs 1 and 2 apples to the suit schedule amounts. 3. Whether plaintiffs 1 and 2 are dependants on the deceased S. M. Ghouse and if so, to what extent they are entitled. 4. What is the balance amount available out of special term deposit after deducting the loan taken by late S. M. Ghouse from defendant No. 7 and who is entitled to receive it.

Ratio Decidendi: 1. The nominee of a provident fund has only the exclusive right to receive the fund. High rights are the seams as that of a nominee under S. 39 of the Insurance Act. 2. The provident fund remains the property of the deceased subscriber and is available for distribution amongst his heirs in accordance with their personal law. The Supreme Court decision in Sarbati Devis case (AIR 1984 SC 346) (supra) governs nominations made, in respect of provident funds as well.

Final Decision: The judgment and decree of the court below is accordingly set aside. The suit is decreed in terms given below. 1. It is declared that each of plaintiffs 1 and 2 are entitled to a 1/6th share; the 1st defendant is entitled to a 1/8th share; the 2nd defendant is entitled to a 26/144th share and each of plaintiffs 3 to 5 and the 4th defendant is entitled to 13/144th share in the actual amounts due under each of items 1 to 3 and 5 to 16 of the plain schedule without restricting the relief in any manner to the amounts specified in the schedule. 2. The aforesaid shares be liable to discharge the loan if any outstanding in favour of defendant 7 in the same proportions as defined in clause 1 of the decree. 3. The parties be directed to approach the Commissioner for Workmens Compensation for his decision regarding item 4 of the plaint schedule. 4. The parties or their guardians-ad-litem, as the case may be, sign such forms or receipts as defendants 4 to 8 may require from them. 5. That the parties bear their respective costs throughout.

RAMACHANDRA RAJU, J.

( 1 ) THE appeal is directed against the decree and Judgement dismissing O. S. No. 33/79 on the file of the Subordinate Judge, Sangareddy, a suit filed for partition of the properties, belonging to the estate of one late S. M. Ghouse, who died on 9-1-1979, due to a fatal accident, while working as a Lineman in the State Electricity Board at Siddipet.

( 2 ) THE parties are referred to according to their position in the suit. Plaintiffs 1 and 2 are respectively the father and mother of late S. M. Ghouse. The said Ghouse married one Razia Begum through whom, three daughters plaintiffs 3 to 5 all minors are born to him. On the death of Razia Begum in the year 1972 S. M. Ghouse married the 1st defendant as his second wife. Defendant 2 is his son through defendant1. Defendant 3 is the posthumous daughter of S. M. Ghouse by the second marriage. Various amounts, detailed as items 1 to 16 of the plain schedule, belong to the estate of late. S. M. Ghouse either as amounts standing to his credit or which became payable consequent on his death. Item 7 of the plaint Schedule involving an amount of Rs. 16. 08 ps. Relates to the arrears of salary due to late S. M. Ghouse for the period 1-1-1979 to 9-1-1979. Item 9 involving an amount of Rs. 16. 37 related to the arrears due, on account of medical aid. It is common ground that, subsequent to the death of late S. M. Ghouse , defendant 1 drew these amounts covered by items 7,9 and 10 involving the total amount of Rs. 57-45ps.

( 3 ) SHORTLY thereafter, disputes arose between the parties because of the claim for a share made by plaintiffs 1 and 2 in the plaint schedule property. Defendant 1 by notice dated 21-6-1979 denied the rights of the plaintiff and the suit, out of which this appeal had arisen, was filed on 26-7-1979, claiming partition. Defendants 4 to 8 impleaded in the suit are the officers who were, by the date of suit, in custody of the various items, listed out in the plaint schedule.

( 4 ) THE suit was resisted by defendants 1 to 3 on various grounds. It is firstly submitted that there is a conflict of interest between plaintiff 1 who is representing plaintiffs 3 to 5 as a next friend and plaintiffs 3 to 5 and there is, therefore, no proper representation for plaintiffs 3 to 5 in the suit. It is submitted secondly that plaintiffs 1 and 2 are not dependant-parents and they are not, therefore, entitled to claim any share. It is then submitted that the nominees under the life Insurance Corporation policies covered by items 1 and 2 of the schedule are alone entitled to be paid the amounts, to the exclusion of all other legal heirs and that, similarly, the family benefit fund covered by item No. 5 and the gratuity covered by them No. 6 are payable only to defendant 1 and the children of S. M. Ghouse and that plaintiffs 1 and 2 are not entitled to claim any share in those amounts.

( 5 ) DEFENDANT 4 Life Insurance Corporation has given particulars, with reference to the individual policies covered by items 1 to 3 and pleaded that the Corporation is prepared to pay the claim amounts to any person as the Court directs, but such payment would arise only when the Corporation decides to admit the claim, after compliance with the requirements of the Corporation to its satisfaction. Defendant-bank 7 is concerned with items 14 and 15. The bank made a counter claim for the repayment by the legal heirs of the loan borrowed by S. M. Ghouse on the security of items 15 of the plaint schedule. Defendant 8 who is concerned with item 16 of the plaint schedule denied the claim made by plaintiffs 1 and 2 but otherwise did not dispute the right of plaintiffs 3 to 5 and defendants 1 to 3 receive that amount. Defendants 5 and 6 remained ex parte. On issue No. 1:- "whether the amounts mentioned in the plaint schedule are the matruka and liable for partition. " The learned Subordinate Judge held that the schedule properties accruing to the estate, after the death of S. M. Ghouse, are not matr


























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