The nominee of a bank account is entitled to the amount involving the account of a deceased, but the nominee remains the custodian of the amount, and the legal heirs can approach appropriate authority for the distribution of the amount.

JUDGMENT

1. This matter is taken up through Video Conferencing mode.

2. Heard Mr.S.K.Bhanjadeo, learned counsel for the petitioner and Mr.U.K.Sahoo, learned Additional Standing Counsel for the State.

3. The Writ Petition involves the following prayer:

'Under the aforesaid facts and circumstances of the case it is therefore, prayed that this Hon'ble Court may kindly issue writ in the nature of mandamus or any other writ applicable and direct to the Op. No.-2, for releasing and distribution of the money equally in favour of all the legal heirs/successors of Late Indumati Mishra, W/o.Late Madhab Chandra Mishra, kept in the account, in connection with the Account No.3240 9706606, Product-SBCHQ-GEN-PUB IND-RURAL-INR, Currency-INR, as deemed just and proper.

And further direct the Op.no.2 not to release the said amount in favour of the Op.no.-3 as deemed just and proper.

And pass such other order(s)/direction(s) as may be deemed fit proper in the bonafide interest of justice.

And for which act of kindness the petitioner as in duty bound shall ever pray.'

4. Taking this Court to the number of legal hairs involving the deceased involving the account involved herein, Sri Bhanjadeo, learned counsel for the petitioner contended that even though the Bank account involves the nominee, Kalpana Sahoo, O.P.3 but for the number of legal heirs, they are all entitled to the amount involving such account. Accordingly, a request is made to issue appropriate direction to the Bank authority involved here to release the amount involved in favour of all legal heirs proportionately.

5. Considering the submission made by Sri Bhanjadeo, this Court observes for the agreement between the Bank and the customer in opening and running the account or in the matter of fixed deposit, the Bank is under obligation to release the amount involved therein in favour of the nominee. Release of amount lying in the deceased account is long since settled. The proposition of law as has been well settled through the decisions in Sailabala Barik & another Vrs. Divisional Manager, Life Insurance Corporation of India and others : 2015 SCC OnLine Ori 49, Rama Chakravarty Vrs. Manager, Punjab National Bank and others : 1990 SCC OnLine Cal 257, Chunni Lal Gaba Vrs. Assistant Director, Directorate of Enforcement : SLP(Criminal) Diary No.11581/2021, Ram Chander Talwar and anr. Vrs. Devender Kumar Talwar and ors. : (2010) 10 SCC 671, Sarbati Devi (Smt.) and anr. Vrs. Usha Devi (Smt.): (1984) 1 SCC 424 and Vishin N. Khanchandani and another Vrs. Vidya Lachmandas Khanchandani and anr.: (2000) 6 SCC 724.

6. The law on this score has been settled clearly observing that in such event, the amount involved might be released in favour of nominee and he or she still remains only as custodian of money involved. Such release cannot estope the legal heirs to make their respective claim however it has to be by way of appropriate proceeding and cannot be settled through Bank or the Insurance Company involved.

7. For the settled position of law it is also to be observed that the nominee is entitled to the amount involving the bank account of a deceased does not mean that the nominee is the sole user of all money involved therein. In the event there are other successors in absence of any registered document authorizing the nominee entitled him/her to hold such amount, the nominee will only remain the custodian of the amount and the persons claiming to be entitled to such amount. However it is open to all such persons to approach appropriate authority for appropriate distribution of such amount amongst the legal heirs. In the circumstance, this Court finds there is no prevention on the part of the Bank to release the amount in favour of Kalpana Sahoo, O.P.3, but O.P.3 on receipt of money will only remain the custodian of the money.

8. With this observation, the Writ Petition stands disposed of.

9. As the restrictions due to resurgence of COVID-19 situation are continuing, learned counsel for the parties may util