SMT. SARABATI DEVI. & ANR. versus SMT. USHA DEVI

SMT. SARABATI DEVI. & ANR. versus SMT. USHA DEVI

Nomination under Section 39 of the Insurance Act, 1938 does not result in conferral of beneficial interest on the nominee; the nominee is simply authorized to receive the amount, which remains property of the estate and is subject to law of succession. The nominee cannot exclude the true heirs from inheriting proceeds.

Parties
Appellant: Sarbati Devi; Appellant: Alok Kumar (minor) represented by Atma Ram; Respondent: Usha Devi
Jurisdiction
India
Judgment Date
06 December 1983
Procedural Posture
Civil Appeal / Supreme Court Appellate Decision
Outcome
Appeal allowed
Legal Topics
Nomination in Life Insurance, Intestate Succession, Beneficial Interest in Insurance Policy
Succession Law Insurance Law Nomination in Life Insurance Intestate Succession Beneficial Interest in Insurance Policy

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Parties

Sarbati Devi

Appellant

Alok Kumar (minor) represented by Atma Ram

Appellant

Usha Devi

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appellate Decision

Legal Issues

  1. 1 Does a nominee under Section 39 of the Insurance Act, 1938 acquire beneficial interest in the proceeds of a life insurance policy to the exclusion of the heirs on the death of the assured, who died intestate?

Ratio Decidendi

Nomination under Section 39 of the Insurance Act, 1938 does not result in conferral of beneficial interest on the nominee; the nominee is simply authorized to receive the amount, which remains property of the estate and is subject to law of succession. The nominee cannot exclude the true heirs from inheriting proceeds.

Court Disposition

Appeal allowed

Orders

  • Judgments and decrees of lower courts set aside
  • Plaintiffs each entitled to 1/3 share in the amount received under the insurance policies and the interest earned by its investment