IMPORTANT POINT
The main legal point established in the judgment is that a nominee holds the proceeds for and on behalf of all the sharers, and therefore, is bound to share the proceeds with other legal heirs.

JUDGMENT :

Heard Sri M.S.Sathish, advocate for appellant, Smt.Pallavi S. Pachhapure, advocate for respondent Nos.1 and 2, Sri Shivasai M. Patil, advocate for respondent No.5 and Sri Rakesh Bilki, advocate for respondent No.3.

2. Though the matter is listed for orders, with the consent of the parties, same is taken up for final disposal.

3. Appeal is filed by the first respondent in P & SC No. 03/2022 on the file of the Additional Senior Civil Judge and JMFC, Hosapete, assailing the Order dated 30.08.2023 passed in the said Case.

4. Facts in brief which are utmost necessary for disposal of the appeal are as under:

A petition came to be filed under Section 372 of the Indian Succession Act with a prayer for issue of Succession Certificate. One T.Vishwanath Setty being the youngest son of T.Thippanna Setty filed a petition seeking issue of Succession Certificate with regard to the Savings Bank Account, Fixed Deposit and Insurance Policy amounts held by Thippanna Setty. Appellant was named as nominee in the records maintained by banks and financial institutions.

5. The said petition for issue of Succession Certificate was contested. On such, petition came to be allowed. The operation portion of the impugned order reads as under:

“The petition filed by the petitioner under Section 372 of the Indian Succession Act, 1925, is allowed.

Issue Succession Certificate in favour of the petitioner by name T.Vishwanath Shetty, S/o T.Thippanna Setty, aged 47 years, advocate and agriculturist, R/o Door No.169, Balaji Nilaya, Behind Vadiraj Tiffin Centre, 3rd Cross, Kappagal Road, Ballari, in order to claim the 1/3rd amount as mentioned in the petition schedule amounts.

Likewise, issue Succession Certificate in favour of the respondent No.1 and 2 naemly T.Nagendra Setty, S/o late T.Thippanna Setty and T.Manjunatha Setty, S/o T.Thippanna Setty, in order to claim the 1/3rd amount each as mentijoned in the petition schedule amounts.

It is made very clear that, these certificates are issued only for the purpose of claiming benefits as mentioned in the petition schedule and other than that purpose this certificate shall not be used for any other purpose.

Issue Succession Certificates in favour of petitioner and respondent No.1 and 2 after receiving necessary court fee from the petitioner and respondent No.1 and 2.”

6. Being aggrieved by the same, first respondent is in appeal.

7. Sri M.S.Sathish, advocate for the appellant, reiterating the grounds urged in the appeal memorandum, contended that there is a partition suit pending between the parties in O.S.No.46/2020 on the file of the II Addl. Senior Civil Judge, Bellary, sitting at Siruguppa. Therefore, the Court which issued the Succession Certificate erred in law in allowing the petition. More over, since appellant is the nominee, he is entitled to receive the proceeds from the Savings Bank Account, Fixed Deposit and Insurance Policy amounts from the banks and financial institutions. As such, sought for setting aside the impugned order issuing Succession Certificate by allowing the appeal.

8. Per contra, Smt. Pallavi S Pachhapure, Sri Shivasai M. Patil and Sri Rakesh Bilki, advocates supported the impugned order.

9. Smt. Pallavi S. Pachhapure, Advocate for contesting respondents contends that there is no dispute that name of the appellant has been shown as nominee of late Thippanna Setty in the records of Banks and financial institutions. But, that itself would not make out a case for the appellant to receive the money as the owner of the proceeds of Savings Bank Account, Fixed Deposit and Insurance Policy.

10. She also contends that the nomination facility would only put an end the relationship of deceased with financial institutions by handing over proceeds of Savings Bank Account, Fixed Deposit and Insurance Policy amounts in the name of nominee.

11. She also contends that the nominee thereof would be holding the money/proceeds as a trustee for and on behalf of all the sharers and in the absence of