The Court issued a Writ of Mandamus directing the respondent bank to disburse maturity proceeds of fixed deposits to the petitioner, who is the nominee of the deceased account holder, within eight weeks.
Direction to the respondent bank to disburse maturity proceeds of Rs. 33,50,000/- to the petitioner within eight weeks.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 22.06.2022
CORAM:
THE HON'BLE MR. JUSTICE ABDUL QUDDHOSE
W.P.No.7347 of 2022
M.Gopinath ...Petitioner vs.
The Branch Manager, Tamil Nadu Mercantile Bank Ltd., Tamil Nadu Mercantile Bank, Kannankurichi, Salem – 636 008. ...Respondent
Prayer:Writ Petition filed under Article 226 of the Constitution of India, to issue a Writ of Mandamus, direct the respondents to hand over the fixed deposited amount lying in the Fixed Deposit account Nos.060200060501079 and 060200060501065 to me as a nominee under Section 45-ZA of the Banking Regulation Act, 1949 and Rule 2(1) of the Banking Companies (Nomination) Rules, 1949 and Rule 2(1) of the Banking Companies (Nomination) Rules, 1985, based on the Representations made by me on 26.07.2021.
For petitioner : Mr.R. Balaramesh For respondent : Mr.V. Chandrasekaran
ORDER
The petitioner is a nominee in the Fixed Deposits standing in the name of his mother M.Girija with the respondent Bank. The Fixed Deposit amount is Rs.33,50,000/-.The maturity proceeds have not been given to the petitioner even after the death of his mother M.Girija though he is a nominee. In such circumstances, he has filed this writ petition.
2.Heard Mr.R. Balaramesh, learned counsel for the petitioner and Mr.V. Chandrasekaran, learned counsel for the respondent.
3.According to the learned counsel for the respondent bank based on a complaint lodged by a third party, the maturity proceeds payable under the Fixed Deposits standing in the name of the petitioner's mother M.Girija was not paid to the petitioner though he is a nominee. The petitioner has enclosed Fixed Deposit Receipts, wherein it is disclosed that the
petitioner is a nominee.
4.Being a nominee, it is settled law that the respondent bank will have to pay the maturity proceeds of the Fixed Deposit Receipts to the petitioner. Since the same has not been disbursed till date, a direction will have to be issued by this Court to the respondent bank to disburse the same to the petitioner.
5.The learned counsel for the respondent bank has also not raised any serious objection and has also not disputed the fact that the petitioner is a nominee for M.Girija who was holding Fixed Deposit Receipts with the respondent bank for a total sum of Rs.33,50,000/-.
6.For the foregoing reasons, this Court directs the respondent bank to disburse the maturity proceeds in respect of the Fixed Deposits standing in the name of M.Giriija, the deceased to the petitioner who is a nominee by following the procedure contemplated under the Banking Regulation Act, 1949 and the Banking Companies (Nomination) Rules, 1985 and the guidelines issued by the Reserve Bank of India, within a period of eight weeks from the date of receipt of a copy of this order.
7.With the aforesaid directions, this writ petition is disposed of. No costs.
Sd/-
Assistant Registrar(CO)
//True Copy//
Sub Assistant Registrar
vsi2
To
The Branch Manager, Tamil Nadu Mercantile Bank Ltd., Tamil Nadu Mercantile Bank, Kannankurichi, Salem – 636 008.
+1cc to Mr.R.BalaRamesh, Advocate, S.R.No.38464
W.P.No.7347 of 2022
RLD(CO) RGA(08/07/2022)
2 issues framed by the court
Whether a bank is liable to disburse maturity proceeds to a nominee upon the death of the account holder.
Whether the petitioner is entitled to the fixed deposit amount as a nominee under the Banking Regulation Act.
4 provisions across 3 enactments
M. Gopinath
The Branch Manager, Tamil Nadu Mercantile Bank Ltd.
Abdul Qudd hose
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
Abdul Qudd hose
Parties & counsel
