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2015 Supreme(Ker) 799

IN THE HIGH COURT OF KERALA AT ERNAKULAM
B. KEMAL PASHA, J.
K.K. ALAMELU – Petitioner
Versus
L. PUSHKALA & OTHERS – Respondents
O.P. (C) No. 3453 of 2013
Decided On : 24.7.2015

Advocate Appeared:
For the Petitioner:Sri. Babu Cherukara, Sri. Sevi Varghese, Smt. Rosamma Mathew, Sri. P.A. Salim, Sri. Anzar Basheer and Sri. K.S. Gireesan, Advocates.
For the Respondent:Sri. P.V. Anil, Sri. M. Anilprasad and Sri. T.R. Ravi, SC, Advocates.

Headnote:

Indian Succession Act, 1925 - Section 372 - Payment of Gratuity Act, 1972 - Sections 2(h) and 6 - Family - Nomination - Debts to be paid before legacies - Application for succession certificate was filed by legal heirs of deceased who was working as an employee at Institute of Medical Sciences and Technology, he died while in service and had nominated his sister, who is petitioner herein, as person entitled to receive his gratuity - Whether deceased was being looked after and maintained by the wife and children, does not assume any importance at all - Even if it is admitted that deceased was not being looked after and maintained by his wife and children, right to succession cannot be denied to wife and children - Held, A nominee does not acquire any right to appropriate amounts; whereas nominee can only collect amount for and on behalf of the legal representatives of the deceased - A nominee cannot appropriate the amount unless the nominee is the sole legal representative or the nominee is given a right to have testamentary succession.

JUDGMENT

B. KEMAL PASHA, J.

1. An application for succession certificate was filed by the legal heirs of deceased Venkiteswaran, who was working as an employee at the Sree Chithira Thirunal Institute of Medical Sciences and Technology, Thiruvananthapuram. He died while in service. He has nominated his sister, who is the petitioner herein, as the person entitled to receive his gratuity.

2. An application for succession certificate was filed by the wife and children of the deceased for availing the death cum retirement benefits of the deceased. The petitioner filed I.A. No. 1492 of 2013 in the succession O.P. for getting herself impleaded as the additional 2nd respondent. Through Ext.P10 order, the court below has dismissed the I.A. The said order is under challenge.

3. Heard the learned counsel for the petitioner and the learned counsel for the respondents.

4. According to the learned counsel for the petitioner, the 1st respondent/wife was leading an adulterous life and thereby the marital life of deceased Venkiteswaran and the first respondent fell apart. Thereafter, he was residing along with his sister, who is the petitioner herein, and he has changed the nomination to the person to whom the gratuity has to be paid, into the name of the petitioner. Therefore, according to the learned counsel for the petitioner, the legal representatives have no role in the matter and the application for succession certificate itself is not maintainable, when the petitioner has been nominated as the nominee to receive the amount.

5. Per contra, the learned counsel for the respondents has argued that the nominee can only collect the amount at the most, and cannot appropriate it. Even if a valid nomination is made, the nominee can only collect the amount and has to pay the amount to the concerned persons who are entitled to succeed the deceased. Over and above it, it has been pointed out that in this case, the nomination of the petitioner itself is not valid. As per Section 6 of the Payment of Gratuity Act, 1972, if an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his family. Family is also defined under Section 2(h), which says:

Family in relation to an employee, shall be deemed to consist of:-

(i) In the case of a male employee, himself, his wife, his children, whether married or unmarried, his dependent parents (and the dependent parents of his wife and the widow) and children of his predeceased son, if any."

In this particular case, there is no case for the petitioner that a valid divorce was effected by dissolving the marriage of the deceased and the first respondent. Even though they were allegedly residing separately, the status of the first respondent as the wife of the deceased still continues. As far as the children are concerned, nobody can say that they are not members of the family of the deceased.

6. The question as to whether the deceased was being looked after and maintained by the wife and children, does not assume any importance at all. Even if it is admitted that the deceased was not being looked after and maintained by his wife and children, the right to succession cannot be denied to the wife and children.

7. The learned counsel for the respondents has relied on the decisions in Sarbati Devi and Another vs. Usha Devi, AIR 1984 SC 346 and Vishin N. Khanchandani and Another vs. Vidya Lachmandas Khanchandani and Another, (2000) 6 SCC 724 wherein the question relating to nomination was considered. In the aforesaid cases it was held:-

"The nominee of the National Savings Certificates has a right to be paid the sum due on such savings certificates after the death of the holder, yet he retains the said amount for the benefit of the persons who are entitled to it under the law of succession applicable in the case."

8. The law is that a nominee does not acquire any right to appropriate the amounts; whereas the nominee can only collect the amount for and on behalf of


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