IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ASHOK S. KINAGI
B.N. Kushalappa, S/o. Late Nanjunda – Appellant
Versus
Canara Bank – Respondent
JUDGMENT :
ASHOK S. KINAGI, J.
This Regular Second Appeal is filed by the appellant challenging the judgment and decree dated 12.02.2013 passed in R.A.Nos.3/2010 and 4/2010 by the learned District Judge, Madikeri, and the judgment and decree dated 08.12.2009 passed in O.S.No.5/1998 by the Civil Judge (Senior Division), Madikeri.
2. For convenience, the parties are referred to, based on their rankings before the Trial Court. The appellant was the plaintiff, and the respondents were the defendants.
3. Brief facts, leading rise to the filing of this appeal are as follows:
4. The plaintiff filed a suit against the defendants for recovery of the money. It is the case of the plaintiff that the plaintiff and the deceased Kalappa are brothers.
Kalappa died on 14.08.1991, and his wife, Smt. Boji Kalappa passed away on 14.05.1995. Defendant No.2 is the brother of Smt. Boji Kalappa. Smt. Boji Kalappa had deposited a certain amount in defendant No.1-Bank. She had shown defendant No.2 as her nominee. After her demise, defendant No.1-Bank disbursed the said amount in favour of defendant No.2, as he was a nominee. It is contended that the plaintiff, being the natural heir of Smt. Boji Kalappa, succeede
The nominee's right to funds does not negate the natural heir's claim, pending valid proof of the Will in probate proceedings, affirming the need for due process in inheritance rights.
A nominee under banking law cannot appropriate funds and must disburse them to the legal heirs, who retain their rights over the estate.
A father cannot bequeath his son's share in ancestral property as per Hindu Succession Act, 1956, Section 30.
Co-owners are presumed to be in constructive possession of property unless ouster is proven, impacting court fee valuation in partition suits.
The court affirmed that a succession certificate grants legal heirs entitlement to deceased's bank deposits, overriding nominee claims under the Banking Regulation Act.
A nominee does not inherit the estate of the deceased and must distribute amounts to legal heirs according to succession laws.
Nomination does not confer ownership rights; legal heirs retain entitlement to the deceased's estate under succession laws.
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