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IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.Pratheep Kumar, J.
Rajeshbabu, S/O.Rajendran – Petitioner
Versus
Muralikrishanan, S/O.Late Mayadevi And Ors. – Respondents
RFA NO. 59 OF 2014
Decided On : 28-07-2025
Certainly. Based on the provided legal document, here are the key legal points:
A nominee under banking law acts solely as a trustee and does not have ownership rights over the deposited funds. The nominee's role is to disburse funds to the legal heirs, who retain their rights over the estate (!) (!) .
The legal heirs of a deceased person, such as children or other relatives, have a right to the estate, regardless of the nominee designation. The nominee does not have the authority to appropriate or deny disbursement of the funds to the rightful heirs (!) (!) .
The presumption of marriage between a man and woman can be established through long-term cohabitation and consistent conduct, even if formal marriage documentation is absent or incomplete. Such presumption is rebuttable but is strong when supported by evidence of continuous cohabitation and related conduct (!) (!) .
Long-standing cohabitation and conduct can lead courts to presume the existence of a valid marriage, which in turn establishes the rights of the children born from that relationship as legal heirs (!) (!) .
The burden of rebutting the presumption of marriage or cohabitation lies heavily on the party who denies its existence. Evidence such as documents, testimonies, and conduct are critical in assessing the validity of the marriage or relationship (!) (!) .
The court emphasized that a nominee's role is limited to acting as an intermediary for disbursing funds and does not confer beneficial ownership or rights over the estate. The estate devolves according to law of succession, and heirs are entitled to receive their due share (!) (!) .
In disputes over deposited funds or estate inheritance, the court's primary focus is on establishing the relationship of the parties and their rights under the law of succession, rather than the formalities of marriage unless long-term cohabitation and conduct support the presumption of marriage (!) (!) .
The appeal was dismissed because the court found that the plaintiffs were the children of the deceased, and the defendant, as a nominee, was liable to disburse the funds to them. The court upheld the trial court's decision, affirming that the nominee must act in accordance with the rights of the legal heirs (!) .
Please let me know if you need further analysis or specific legal advice related to this document.
| Table of Content |
|---|
| 1. claim for funds by legal heirs. (Para 3) |
| 2. nominee's role and legal relationship. (Para 4 , 6) |
| 3. evidence supporting plaintiffs' claims. (Para 7 , 8 , 9) |
| 4. establishing relationship through documentation. (Para 10 , 11 , 12) |
| 5. presumption of marriage and legal rights. (Para 13 , 15) |
| 6. nominee's fiduciary duties and rights of heirs. (Para 17 , 18 , 19 , 20 , 21) |
| 7. final ruling on the appeal. (Para 22) |
JUDGMENT :
C.Pratheep Kumar, J.
The defendant in O.S.232/2011 on the file of the Sub Court, Cherthala is the appellant. (For the purpose of convenience , the parties are hereafter referred to as per their rank before the trial court).
2. The plaintiffs filed the suit for realisation of money from the defendant.As per the plaint averments, the plaintiffs are the children of late Mayadevi who died on 22.7.2011. The defendant is the brother of deceased Mayadevi. According to the plaintiffs, the deceased Mayadevi deposited a sum of Rs.8,00,000/- in State Bank of Travancore, Aroor branch and made the defendant as her nominee. After the death of Mayadevi, the defendant instead of disbursing the amount to the legal representatives of Mayadevi, namely the plaintiffs, attempted to appropriate the said amount. Therefore, to recover the said amount they preferred the suit.
3. In the written statement filed by the defendant, he admitted that Mayadevi deposited a sum of Rs.8,00,000/- in the bank and that he was made as nominee. However, according to him, the plaintiffs are not the children of Mayadevi. It is contended that the plaintiffs and Mayadevi had no relationship with each other and therefore, he prayed for dismissing the suit.
4. The evidence in the case consists of the oral testimonies of PWs1 to 5 and DWs1 and 2, Exts.A1 to A14, B1, B2, X1, X1(a), X1(b) and X2. After evaluating the evidence on record, the trial court decreed the suit. Being aggrieved by the above judgment and decree of the trial court, the defendant preferred this appeal.
5. Now the points that arise for consideration are the following :
i. Whether the plaintiffs are the children born to deceased Mayadevi ?
ii).Whether a nominee can appropriate the amount deposited in fixed deposit ?
iii).Whether the impugned judgment and decree of the trial court calls for any interference, in the light of the grounds raised in the appeal?
6. Heard Sri.O.Ramachandran Nambiar, the learned counsel for the appellant and Sri.Cibi Thomas, the learned counsel for the respondents/plaintiffs.
7. Admittedly, the deceased K.Mayadevi had deposited a sum of Rs.8,00,000/- in the SBT, Aroor branch and she had nominated her brother namely the defendant as her nominee. It is also admitted that Mayadevi died on 22.7.2011. According to the plaintiffs, they are the children born to Mayadevi in one Vijayan and as such they are the legal representatives of Mayadevi and are entitled to receive the amount deposited in the bank. The defendant would contend that the plaintiffs are not the children of Mayadevi.
8. The contention taken by the learned counsel for the appellant/defendant at the time arguments is that Mayadevi referred to by the plaintiffs as their mother is not the sister of the appellant. In order to substantiate the case, the 1st plaintiff was examined as PW1. He would depose that Mayadevi is his mother and the name of his father is Vijayan. The said Vijayan was examined as PW3. PW3 also categorically deposed that Mayadevi was his wife and that the plaintiffs are the children born to them. According to him, their marriage was solemnized at Guruvayoor Temple on 10.7.1988 and thereafter on 13.7.1998 they have executed Ext.A5 marriage deed and got it registered before the Sub Registry, Mararikulam. The learned counsel for the appellant would argue that the marriage deed registered before the Sub Registry will not create a valid marriage. It is true that a marriage deed executed between two persons and registered before the Sub Registry will not by itself create a valid marriage. On the oth
A nominee under banking law cannot appropriate funds and must disburse them to the legal heirs, who retain their rights over the estate.
Banking Services – Release of amount of deceased claimed by nominees – Nomination process does not override succession laws.
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.
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.
Nominees do not inherit the estate of the deceased; they must distribute amounts to legal heirs according to succession laws.
Nomination in insurance does not confer absolute rights over terminal benefits, which pertain to legal heirs under succession laws.
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.
The court affirmed that a succession certificate grants legal heirs entitlement to deceased's bank deposits, overriding nominee claims under the Banking Regulation Act.
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