Nomination under savings certificates gives receipt rights, not beneficial ownership; the proceeds remain part of the deceased estate.

Nomination under the Government Savings Certificates Act entitles the nominee to receive payment on the holder's death and gives the Government a valid discharge, but it does not by itself confer beneficial ownership. The statutory scheme, read with sections 7 and 8, preserves the rights of the executor, administrator or other legal representatives to claim the amount remaining after lawful deductions. The nominee receives the certificate proceeds for and on behalf of the estate, and the amount devolves under the applicable law of succession rather than by nomination alone.

---

---

Issues: Whether the nominee of a National Savings Certificate becomes the absolute owner of the amount due on the holder's death, or whether the nominee merely receives the amount for and on behalf of the deceased holder's estate, subject to succession law.

Analysis: Section 6 of the Government Savings Certificates Act, 1959 gives the nominee a right to receive payment on the death of the holder and uses non obstante language, but the scheme of sections 7 and 8 shows that the statutory purpose is to facilitate payment and secure a valid discharge to the Government, not to alter the devolution of property. Section 8(2) preserves the right of the executor, administrator or legal representatives to recover the amount remaining with the nominee after lawful deductions. The statutory arrangement is analogous to the principle already affirmed in relation to nomination under insurance law: nomination identifies the person authorized to receive the money, but does not by itself create a beneficial title in the nominee.

Conclusion: The nominee is entitled to receive the amount due on the National Savings Certificates, but does not become the beneficial owner of that amount; after valid deductions, the amount forms part of the deceased's estate and is liable to be claimed by the persons entitled under the applicable law of succession. The respondents were therefore entitled to succession in respect of the estate, while the appellants, as nominees, were entitled only to receive the certificate amounts subject to the statutory undertaking.

---