Module: General Practice
Q188: Consider the following:
Assertion (A): Payment made by a bank to a Nominee constitutes a full discharge of the bank's liability, but it does not confer absolute ownership of the funds to the Nominee.
Reason (R): A Nominee receives the funds solely as a Trustee or custodian on behalf of the legal heirs of the deceased depositor.
Reason (R): A Nominee receives the funds solely as a Trustee or custodian on behalf of the legal heirs of the deceased depositor.
✅ Correct Answer: A
Correct Answer: A. Both A and R are true, and R is the correct explanation of A. Concept: Nominee as Trustee.
Legal Principle: Based on the Supreme Court ruling (Ram Chander Talwar vs.
Devender Kumar Talwar). Bank's View (A): The bank is discharged (freed from liability) once it pays the Nominee.
Heir's View (R): The Nominee is not the "Owner" (unless they are also the sole heir). They hold the money in Trust for the legal heirs.
The rightful heirs can claim their share from the Nominee.
This distinction prevents the bank from being dragged into succession battles.
Legal Principle: Based on the Supreme Court ruling (Ram Chander Talwar vs.
Devender Kumar Talwar). Bank's View (A): The bank is discharged (freed from liability) once it pays the Nominee.
Heir's View (R): The Nominee is not the "Owner" (unless they are also the sole heir). They hold the money in Trust for the legal heirs.
The rightful heirs can claim their share from the Nominee.
This distinction prevents the bank from being dragged into succession battles.