CONSUMER CARE SOCIETY Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition was initially filed as a public interest litigation seeking declaration that the provision of Section 45-ZA(l) and (2) of the Banking Regulation Act, 1949, as unconstitutional, illegal, arbitrary and irrational. Though this petition was initially instituted as public interest litigation subsequently by order dated 9-11 -2009 of the Division Bench of this Court, this petition is treated as W. P. (GM-RES).

(2.) The petitioner, a society registered under the Karnataka Societies Registration Act has filed this petition to espouse the cause of substantial number of its members who have either deposited or in the normal course deposit money with various commercial banks under term deposits/fixed deposits and have exercised the option of appointing a nominee to receive such deposits in the event of their death under Section 45-ZA(l) and (2) of the Banking Regulation Act, 1949 ('Act' for short).

(3.) The petitioner contends that the aforesaid provision tend to abrogate or nullify the law of succession and/or inheritance as may be applicable and also imposes prohibition against nomination of more than one person as nominee for the said depositor. Though initially challenge was to the provisions of 45-ZA (1) and (2), at the time of arguments of this petition the Counsel appearing for the petitioner would concede that he will give up his challenge regarding the validity and correctness of the provision of Sec. 45-ZA (1), which deals with restriction of nomination to only one person to represent the deposit. He would confine his case with respect to the legality, validity and correctness of Section 45-ZA (2) of the Act, which according him, on the death of the depositor substitute the nominee to exercise all the rights of the depositor with respect to the deposit in question, which will take away the right of the legal heirs available to them under the Law of Succession.