IN THE HIGH COURT OF MADRAS
N. SATHISH KUMAR, J.
Vidyaa Hari Iyer - Appellant
Versus
Sundaram Finance Limited and Ors. - Respondents
A. No. 2468 of 2020 in O.P. No. 953 of 2018
Decided On : 11-12-2020
Indian Succession Act - section 191 - Banking Regulations Act - Sections 145ZA and 191 - Life Insurance Act - Section 39 - Succession certificate - Seeking direction to release the deposit amount held by her husband - Matrimonial home tried to grab the money left by her husband - Whether the direction can be issued to the first respondent to pay the fixed deposit amount lying with them - Applicant is that after the death of her husband, the first respondent failed to release the deposit made by her husband on the ground that the second respondent was the nominee - Applicant has filed an Original Petition in O.P. for issuance of Succession Certificate - Court by an Order the Succession Certificate. Despite the certificate produced, the first respondent did not release the amount. It is further alleged by the applicant in the application that her husband had made various fixed deposits. After the death of her husband, she was driven out of her matrimonial home. Her in-laws and other nephews and nieces tried to usurp the entire amount - Application has been filed to seeking direction to release the deposit amount held by her husband – Held, nominee has to be treated as a trustee and he is entitled to receive the amount only and he has to pay the amount to the persons who are entitled under law of succession. Therefore, when the succession certificate already granted, the object of Indian Succession Act has to be given importance - Contention that only the nominee alone as per section 45ZA of the Banking Regulations Act is entitled to receive money even after succession certificate is granted, cannot be countenanced merely because a suit has been filed at a later point of time at the instance of the nominee, despite the succession certificate has been produced, the same has no relevance to decide this application - If at all the second respondent in the event of succeeding in the suit in O.S. No. to realise amount, this Court is of the view that some security has to be offered by the applicant - Learned counsel for the applicant that in C.S. No. already 1/4th share of applicant has been declared and preliminary decree is already passed and charge may be created in respect of the above 1/4th share of the applicant towards the deposit amount till the interpleader suit is decided – Ordered Accordingly
ORDER :
N. Sathish Kumar, J.
1. This application has been filed by the applicant to direct the first respondent to disburse to the credit of the applicant herein the monies lying in FDR No. D629907 (L936473) together with interest at 18% p.a. from the date of maturity, within a time frame as fixed by this Court.
2. The contention of the applicant is that after the death of her husband, the first respondent failed to release the deposit made by her husband on the ground that the second respondent was the nominee. The applicant has filed an Original Petition in O.P. No. 953 of 2018 for issuance of Succession Certificate. The Court by an Order dated 26.12.2019 issued the Succession Certificate. Despite the certificate produced, the first respondent did not release the amount. It is further alleged by the applicant in the application that her husband had made various fixed deposits. After the death of her husband, she was driven out of her matrimonial home. Her in-laws and other nephews and nieces tried to usurp the entire amount. Hence, this application has been filed to seeking direction to release the deposit amount held by her husband.
3. It is the contention of the first respondent that the second respondent is the nominee, has objected for release of the amount. They have filed an interpleader suit before the City Civil Court for decision.
4. Whereas the second respondent would contend that the succession certificate has been obtained without making him as a party. There are 8 writ petitions pending in respect of other deposits made by the husband of the applicant, wherein the other relatives have been appointed as nominees. When the writ petitions are already pending, the succession certificate has been obtained. Therefore, the same is not binding on them. It is his further contention that the conduct of the applicant's husband making all other relatives as nominees clearly proves that he has made gift of the money deposited in the bank to each of his nephews and nieces. Hence, it is his contention that when the suit filed by the first respondent is pending, direction cannot be ordered in this application. Only the nominee is entitled to receive the money. The right of the applicant has to be decided only in the suit. Hence, prayed for dismissal of this application.
5. The learned counsel Mr. Mohan, appearing for the applicant submitted that despite the certificate granted in favour of the applicant, who is the only legal heir of her husband late Hari, the first respondent has not paid the amount on the ground that the second respondent is the nominee. It is his contention that once succession certificate is granted under Chapter X of the Indian Succession Act, the first respondent has to necessarily pay the deposit amount to the applicant. Hence, submitted that merely because some writ petitions are pending in respect of other deposits, the same cannot be a ground to non suit the applicant. It is his further contention that taking advantage of the fact that the applicant is a widow, the family members in the matrimonial home tried to grab the money left by her husband. In fact a suit has also been filed claiming huge damages preventing her from seeking any redressal. This Court has heavily come down on the plaintiff in the above suit and dismissed the above suit. All these facts clearly indicate that only for the purpose of defeating the rights of the applicant, all the measures have been taken and interpleader suit has also been filed by the first respondent with the connivance and collusion with the second respondent. Hence, submitted that she being the class-I legal heir, she is entitled for release of the amount. In the event of the second respondent succeeding in the interpleader suit, the applicant offers her share declared in C.S. No. 899 of 2017 as security towards the amount and there can be charge over her share in the above immovable property. Hence, submitted that the applicant is entitled to a direction to the first
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