Nominee rights — Bank account — Death of depositor — Banking Regulation Act, 1949 S. 45ZA(2).

[ Ram Chander Talwar &
Anr. v. Devender Kumar Talwar & Ors., (2010) 159 Comp. Cas. 646 (SC)]

The appellant who was the
nominee in the bank account held by his deceased mother claimed full rights over
the money lying in the account, to the exclusion of the respondent who was none
else than his full brother. The claim is based on S. 45ZA of the Banking
Regulation Act, 1949, which according to him, made the nominee of the depositor
the sole beneficiary, vested himwith all the rights of the sole depositor.

The Supreme Court held that
S. 45ZA(2) of the Banking Regulation Act, 1949 merely puts the nominee in the
shoes of the depositor after his death and clothes him with the exclusive right
to receive the money lying in the account. It gives him all the rights of the
depositor so far as the depositor’s account is concerned. But by no stretch of
imagination does it make the nominee the owner of the money lying in the
account. The Banking Regulation Act, 1949 is enacted to consolidate and amend
the law relating to banking. It is in no way concerned with the question of
succession. All the monies receivable by the nominee by virtue of S. 45ZA(2)
would, therefore, form part of the estate of the deceased depositor and devolve
according to the rule of succession to which the depositor may be governed.