SARJU DEVI Vs. NARESH CHANDRA NIGAM

JUDGEMENT

(1.) AGAINST an order granting succession certificate to the respondent no. 1, the present appeal has been filed .

(2.) THE dispute releates to the estate of Smt. Shakuntala Nigam who was the real sister of the appellant. Respondent no. 1 is the husband of the deceased Shakuntala Nigam while respondent no. 2 is his brother. THE deceased was married to respondent no. 1 on 30th April, 1983 and she died on 11th May, 1984 due to burn injuries. She was employed in the Sales Tax Department of the Government of U. P. since 1979 and had a Group Insurance and a Provident Fund Account. A nomination was made by her on 24th November, 1983 in favour of the appellant.

(3.) THE Bench also held that the nomination does not create a trust in favour of the nominee and they do not have any vested interest in the estate of the deceased. THE view expressed by this Court was later on approved by the Supreme Court in Smt. Sarbati Devi v. Smt. Usha Devi, 1984 AWC 133 SC Expressing its opinion on the true purport of Section 39, the Supreme Court held that the policy holder continues to hold interest in the policy during his life time and the nominee acquires no sort of interest in the policy during the life time of the Policy holder. It was further held that on the death of Policy holder, the amount payable under the policy becomes part of his estate which is governed by the law of succession applicable to him. THE Court rejected the submission that Section 39 of the Act operates as a third kind of succession which is some times styled as 'statutory testament'.