In Brief
A testator nominated his legal heirs and others as nominees for fixed deposits and mutual fund investments, while bequeathing other properties by will under the Indian Succession Act, 1925. The appellants, as nominees, claimed absolute ownership of the securities. The Supreme Court held that nomination under Section 109A of the Companies Act, 1956, and Bye-Law 9.11.1 of the Depositories Act, 1996, does not confer absolute title to the nominee. The vesting in the nominee serves only to facilitate administrative formalities post-death and shield the securities from protracted litigation until legal heirs establish succession rights. Nomination creates no third mode of succession and remains subject to succession laws. The will supersedes the nomination regarding devolution of the securities.
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