Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Indian Succession Act, 1925), or the Bombay Regulation VIII of 1827,
  • Rule 8 of the Madhya Pradesh General Provident Fund Rules
  • Rule 8 of the M.P. General Provident Fund Rules
  • Section 384 of the Indian Succession Act, 1925
  • Section 5(1)(2) of the Provident Funds Act, 1925
  • SECTION 15 HINDU SUCCESSION ACT 1956
  • Section 372 of the Indian Succession Act
  • Section 15(1) of the Hindu Succession Act.
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Indian Succession Act, 1925), or the Bombay Regulation VIII of 1827,
  • Rule 8 of the Madhya Pradesh General Provident Fund Rules
  • Rule 8 of the M.P. General Provident Fund Rules
  • Section 384 of the Indian Succession Act, 1925
  • Section 5(1)(2) of the Provident Funds Act, 1925
  • SECTION 15 HINDU SUCCESSION ACT 1956
  • Section 372 of the Indian Succession Act
  • Section 15(1) of the Hindu Succession Act.
Smart Summary

Factual and Procedural Background

This appeal under Section 384 of the Indian Succession Act, 1925, was filed by the objector/appellant against the order dated 8-4-1992 passed by the First Additional District Judge, Raigarh in Succession Case No. 4 of 1989. The impugned order allowed the application for grant of succession certificate in the name of the respondent concerning the estate of the deceased Sonkunwar Bai.

The respondents had applied under Section 372 of the Indian Succession Act for a succession certificate in respect of Rs. 31,484/- deposited towards the General Provident Fund (G.P.F.) and Family Benefit Fund by the deceased, who died issueless on 6-11-1987. The application was based on a nomination in the G.P.F. account submitted by the deceased. The appellants, claiming to be heirs of the husband of the deceased (brothers and sisters of the husband), objected to the grant of the certificate, alleging that the nomination form was bogus and manipulated.

The Additional District Judge, after considering the evidence, allowed the succession certificate to the respondents. The appellants then filed this appeal challenging that order.

Legal Issues Presented

  1. Whether the nomination made by the deceased in the G.P.F. account confers a beneficial interest on the nominee, entitling them to a succession certificate to the exclusion of other heirs.
  2. Whether the heirs of the husband of the deceased have a superior claim to the succession certificate over the nominee under the relevant succession laws.
  3. The validity and effect of the nomination form submitted by the deceased in the context of succession law and provident fund rules.

Arguments of the Parties

Appellant's Arguments

  • The learned Additional District Judge failed to consider the case from the correct legal perspective and wrongly allowed the succession certificate to the respondents.
  • They relied on the precedent set in Sarbati Devi v. Usha Devi, AIR 1984 SC 346, arguing that a nomination under Section 39 does not confer any beneficial interest and that the amount can be claimed by heirs according to succession laws.
  • They contended that the nomination form was bogus and manipulated.
  • They claimed to be the nearest relations and rightful heirs as siblings of the deceased’s husband.

Respondent's Arguments

  • The respondents were validly nominated by the deceased in respect of the G.P.F. amount, as evidenced by the nomination form (Ex. P-1).
  • The nomination was made under Rule 8 of the Madhya Pradesh General Provident Fund Rules, which authorizes such nomination conferring the right to receive the amount on death of the subscriber.
  • The respondents are also preferential heirs under Section 15(1) of the Hindu Succession Act, 1956, being heirs of the husband of the deceased.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sarbati Devi v. Usha Devi, AIR 1984 SC 346 A nomination under Section 39 does not confer beneficial interest on the nominee; the nominee is only authorized to receive the amount, which can be claimed by heirs according to succession law. The Court held that this precedent supports the respondents' position, emphasizing that the nomination does not exclude the rights of heirs and that the nomination form was valid.

Court's Reasoning and Analysis

The Court examined the nomination form (Ex. P-1) submitted by the deceased under Rule 8 of the Madhya Pradesh General Provident Fund Rules, which mandates that a subscriber to the G.P.F. must nominate one or more persons entitled to receive the amount standing to their credit upon death. The Court referred to Section 5(1)(2) of the Provident Funds Act, 1925, which grants the nominee the exclusive right to receive the sum unless the nomination is varied, cancelled, or invalidated by specific contingencies.

The Court noted that the nomination was duly made and there was no evidence to disbelieve it. Further, the Court analyzed Section 15 of the Hindu Succession Act, 1956, which prescribes the order of succession for a female Hindu dying intestate. The respondents, as heirs of the husband, fall within the second category of preferential heirs under this provision.

Considering these legal provisions and the evidence, the Court concluded that the respondents were entitled to the succession certificate both by virtue of the valid nomination and their status as preferential heirs under the Hindu Succession Act. The Court rejected the appellants’ contention about the nomination being bogus and found no merit in their appeal.

Holding and Implications

The Court DISMISSED the appeal, thereby upholding the order granting the succession certificate to the respondents.

The direct effect of this decision is that the respondents are confirmed as entitled to receive the amount standing to the deceased’s credit in the G.P.F. and Family Benefit Fund. The Court did not set any new precedent beyond applying existing statutory provisions and case law to the facts of this case.

    Kheekbai v. Chamru Ram Yadav

    1. This appeal Under Section 384 of the Indian Succession Act, 1925 by the objector/appellant is directed against the order dated 8-4-1992 passed by the First Additional District Judge, Raigarh in Succession Case No. 4 of 1989, allowing the application for grant of succession certificate in the name of the respondent in respect of the date and sureties of the deceased Sonkunwar Bai.

    2. The applicants/respondents moved an application Under Section 372 of the Indian Succession Act for grant of succession certificate in respect of an amount of Rs. 31,484/- deposited towards G.P.F. and Family Benefit Fund by the deceased Sonkunwar Bai, who was working as a peon in the Soil Conservation Office at Dharamjaigarh, Distt. Raigarh and died issueless on 6-11-1987, on the basis of the nomination in the G.P.F. account submitted by the deceased in her office. The appellants objected to the grant of succession certificate to the respondents on the ground that they are heirs of the husband of deceased, being brothers and sisters of the husband of the deceased, and they claimed to be the nearest relation and heirs of the deceased. It was further alleged that the nomination form was bogus and manoeuvered.

    3. The learned Additional District Judge, on consideration of the evidence adduced by the parties, allowed the application for grant of succession certificate to the respondents.

    4. Shri N. S. Kale, counsel for the appellants, has contended that the learned Additional District Judge has not considered the case in its proper legal perspective and has wrongly allowed the application for grant of succession certificate to the respondents. He also placed reliance in Sarbati Devi v. Usha Devi, AIR 1984 SC 346 wherein the Apex Court has held :-

    "A mere nomination made Under Section 39 does not have the effect of conferring on the nominee any beneficial interest in the amount payable under the life insurance policy on the death of the assured. The nomination only indicates the hand which is authorised to receive the amount, on the payment of which the insurer gets a valid discharge of its liability under the policy. The amount, however, can be claimed by the heirs of the assured in accordance with the law of succession governing them."

    5. It is evident from Ex. P-l that the respondents were nominated in the form submitted by the deceased Sonkunwar Bai in respect of her G. P. Fund. There is nothing to disbelieve the nomination form (Ex. P-l).

    6. Deceased Sonkunwar Bai was employed as a peon in the establishment of the Soil Conservation Office at Dharamjaigarh. The nomination was made by the deceased in the form and submitted in her office, as provided under Rule 8 of the Madhya Pradesh General Provident Fund Rules which lays down that a subscriber to the General Provident Fund shall, as soon as may be after joining the Fund, send to the Head Office, a nomination conferring on one or more persons the right to receive the amount that may stand to his credit in the fund, in the event of his death before that amount has become payable or having become payable has not been paid.

    7. Section 5(1)(2) of the Provident Funds Act, 1925 lays down as under:-

    "5. Rights of nominees. - (1) Notwithstanding anything contained in any law for the time being in force or in any disposition, whether testamentary or otherwise, by a subscriber to or depositor in, a Government or Railway Provident Fund of the sum standing to his credit in the Fund, or of any part thereof, where any nomination, duly made in accordance with the rules of the Fund, purports to confer upon any person the right to receive the whole or any part of such sum on the death of the subscriber or depositor occurring before the sum has become payable or before the sum having become payable, has been paid, the said person shall, on the death as aforesaid of the subscriber or depositor, become entitled, to the exclusion of all other persons, to receive such sum or part thereof, as the case may be, unless -

    (a) such nomination is at any time varied by another nomination made in like manner or expressly cancelled by notice given in the manner and to the authority prescribed by those rules, or

    (b) such nomination at any time becomes invalid by reason of the happening of some contingency specified therein, -

    and if the said person predeceases the subscriber or depositor, the nomination shall, so far as it relates to the right conferred upon the said person, become void and of no effect:

    Provided that where provision has been duly made in the nomination in accordance with the rules of the fund, conferring upon some other person such right in the stead of the person deceased, such right shall, upon the deceased as aforesaid of the said person, pass to such other person.

    (2) Notwithstanding anything contained in (the Indian Succession Act, 1925), or the Bombay Regulation VIII of 1827, any (person, who becomes entitled as aforesaid, may be granted) a certificate under that Act, or that Regulation, as the case may be, entitling him to receive payment of such sum or part, and such certificate shall not be deemed to be invalidated or superseded by any grant to any other person of probate or letters of administration to the estate of the deceased."

    8. It is thus evident that on the death of the subscriber or depositor the nominee of the deceased subscriber under Rule 8 of the M.P. General Provident Fund Rules become entitled to receive the amount payable to the deceased subscriber.

    9. Section 15 of the Hindu Succession Act, 1956 reads as under :-

    The property of a female Hindu dying intestate shall devolve according to the rule set out in Section 16,

    (a) Firstly, upon the sons and the daughters (including the children of any predeceased son or daughter) and also the husband;

    (b) Secondly, upon the heirs of the husband;

    (c) thirdly, upon the mother and father

    (d) fourthly, upon the heirs of the father; and

    (e) lastly, upon the heirs of the mother.

    10. Apart from the nomination of the respondents in the nomination form the respondents are also preferential heir of the deceased being the heirs of the husband of the deceased as provided Under Section 15(1) of the Hindu Succession Act. The case of Sarbati Devi (supra) relied upon by Shri Kale more supports the case of the respondents than the appellants.

    11. For the reasons mentioned above, I do not find any reason to interfere with the impugned order. There is no merit in this appeal. It is dismissed accordingly.

    Use AI to get other relevant cases.

    Comments

    Kheekbai v. Chamru Ram Yadav
    (Sep 4, 1996)