RAM CHANDER TALWAR & ANR.versusDEVENDER KUMAR TALWAR & ORS.

                   [2010] 11 S.C.R. 897


             RAM CHANDER TALWAR & ANR.                          A
                              v.
          DEVENDER KUMAR TALWAR & ORS.
             (Civil Appeal No. 1684 of 2004)
                    OCTOBER 06, 2010
                                                                B
          [AFTAB ALAM AND R.M. LODHA, JJ.]

    BANKING REGULATION ACT, 1949:
      s.45ZA(2) - Nominee's right in relation to the deposit
made by deceased - Held: All the monies receivable by the C
nominee by virtue of s.45 ZA(2) would form part of the estate
of the deceased depositor and devolve according to the rule
of succession to which the depositor may be governed -
Section 45 ZA(2) merely puts the nominee in the shoes of
the depositor after his death and clothes him with the exclusive D
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 it by no stretch of imagination makes the
nominee the owner of the money lying in the account -
Banking Regulation Act is in no way concerned with the E
question of succession - The High Court has rightly rejected
the appellant's claim - The provision uls. 6(1) of the
Government Saving Certificate Act, 1959 is materially and
substantially the same as the provision of s.45ZA(2) of the
Banking Regulation Act - Government Saving Certificate F
Act, 1959 - s.6(1) - Succession...., Banks/Banking.
    V.N. Khanchandani & Anr. v. V.L. Khanchandani & Anr.,
(2000) 2 Suppl. SCR 415, relied on.
                     Case Law Reference:
                                                                G
    (2000) 2 Suppl. SCR 415           relied on    para 5
    CIVIL APPELLATE JURISDICTION : Civil Appeal No.
1684 of 2006.
                             897
                                                                H
    898       SUPREME COURT REPORTS                  [2010] 11 S.C.R.


A       From the Judgment & Order dated 20.9.2004 of the High
    Court of Delhi at New Delhi in FAO No. 201 of 2004.
       Swetank Shantanu, Satyajit Patra, Karan Chawla (for Ajay
    Kumar Talesara) for the Appellants.

B      Sanjay Goswami, H.K. Balajee, A.S. Bhasme, Arvind
    Kumar Gupta for the Respondents.
          The following Order of the Court was delivered
                               ORDER
C         Heard counsel appearing for the appellants.
         Appellant no.1, who was the nominee in the bank account
    held by his deceased mother claims full rights over the money
    lying in the account, to the exclusion oHhe respondent who. is
    none else than his full brother. The claim is based on section
D   45 ZA of the Banking Regulation Act, which according to him,
    makes the nominee of the depositor the sole beneficiary,
    vested with all the rights of sole depositor.
         Mr. Swetank Shantanu, counsel appearing for the
E   appellants, strenuously argued that by virtue of sub-section 2
    of section 45 ZA, the nominee of the depositor, after the death
    of the depositor acquires all his/her rights to the express
    exclusion of all other persons and, therefore, the respondent
    can not lay any claim to the money in the account or in regard
    to the articles that might be lying in the bank locker held by their
F
    deceased mother.
         The submission is quite fallacious and is based on a
    complete misconception of the provision of the Act. Sub-
    section 2 of the 45ZA, reads as follows:-
G         45ZAxxx    xxx    xxx xxx
          (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,
H         where a nomination made in the prescribed manner
  RAM CHANDER TALWAR & ANR. v. DEVENDER                      899
          KUMAR TALWAR & ORS.
       purports to confer on any person the right to receive the     A
       amount to 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     B
       exclusion of all other persons, unless· the nomination is
       varied or cancelled in the prescribed manner.
       xxx   xxx xxx     xx
                                              (emphasis added)       C
      Section 45ZA(2) 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 it by no stretch of imagination makes the             o
nominee the owner of the money lying in the account. It needs
to be remembered that the Banking Regulation Act 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 section 45 ZA(2)       E
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.
     We find that the High Court has rightly rejected the
appellant's claim relying upon the decision of this Court in V.N. F
Khanchandani & Anr. v. V.L. Khanchandani & Anr., (2000) 6
SCC 724. The provision under Section 6(1) of the Government
Saving Certificate Act, 1959 is materially and substantially the
same as the provision of Section 45ZA(2) of the Banking
Regulation Act, 1949, and the decision in V.N. Khanchandani G
applies with full force to the facts of this case.
    We find no merit in this appeal. It is, accordingly,
dismissed.

R.P.                                          Appeal dimissed.       H