IMPORTANT POINT
A nominee under Section 45ZA of the Banking Regulation Act has the right to receive funds, but these funds remain part of the deceased's estate and are subject to succession laws.

JUDGMENT :

In Re: Civil Misc. Impleadment Application.

1. Impleadment application is allowed.

2. Let the necessary impleadment be incorporated in the memo of writ petition forthwith.

Writ Petition

1. Heard learned counsel for the parties and perused the record.

2. The present writ petition has been filed seeking the following reliefs:-

"(I) Issue a Writ, order or direction in the nature of Mandamus directing and commanding the respondent No.2 to release the FDR Account No. 25660300006755, 25660300006754, 25660300015398 and 25660300006756 in favour of petitioner as being a nominee and a legal heir.

(II) To, issue any other writ order or direction which this Hon'ble Court may deem just and proper and the circumstances of the case.

(III) Award the cost of the petition in favour of the petitioner."

3. The brief facts of the case are that the mother of the petitioner died on February 8, 2020. Before the death of the mother of the petitioner, the mother of the petitioner was owner of several properties as well as owner of several FDRs at the Bank of Baroda. In all these FDRs the petitioner has been named as a nominee.

4. It is to be noted that the petitioner had also filed succession suit being Civil Suit No.195 of 2020 before the learned Civil Judge (Senior Division)/F.T.C., Moradabad. However, this suit was dismissed on the ground that there was another suit pending for cancellation of the alleged will of the petitioner's mother.

5. The petitioner's main argument is that the petitioner being the nominee, the petitioner is entitled to receive the money in the FDRs as per Section 45ZA of the Banking Regulation Act, 1949 (hereinafter referred to as the 'Act'). The said section is delineated below:-

"45ZA. Nomination for payment of depositors' money.—

(1) Where a deposit is held by a banking company to the credit of one or more persons, the depositor or, as the case may be, all the depositors together, may nominate, in the prescribed manner, one person to whom in the event of the death of the sole depositor or the death of all the depositors, the amount of deposit may be returned by the banking company.

(2) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such deposit, where a nomination made in the prescribed manner purports to confer on any person the right to receive the amount of deposit from the banking company, the nominee shall, on the death of the sole depositor or, as the case may be, on the death of all the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner.

(3) Where the nominee is a minor, it shall be lawful for the depositor making the nomination to appoint in the prescribed manner any person to receive the amount of deposit in the event of his death during the minority of the nominee.

(4) Payment by a banking company in accordance with the provisions of this section shall constitute a full discharge to the banking company of its liability in respect of the deposit: Provided that nothing contained in this sub-section shall effect the right or claim which any person may have against the person to whom any payment is made under this section."

6. The petitioner further relies on the Circular letter No.RB12004-05/490 09.06.2005. Paragraph 2 of the said Circular is provided below:-

"2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS (A) Accounts with survivor/nominee clause

2.1 As you are aware, in the case of deposit accounts where the depositor had utilized the nomination facility and made a valid nomination or where the account was opened with the survivorship clause ("either or survivor", or "anyone or survivor", or "former or survivor" or "latter or survivor"), the payment of the balance in the deposit account to the survivor(s)/nominee of a deceased depo