Provident fund nomination confers only a right to receive, not exclusive ownership against legal heirs.

A nomination under paragraph 61 of the Employees' Provident Funds Scheme, 1952 does not give the nominee an exclusive beneficial right against the deceased member's heirs. In the absence of an overriding non obstante provision, the phrase "right to receive" confers only authority to collect the fund amount, not ownership. The Court applied the principle that a nominee under the scheme acquires no beneficial title merely by nomination, and the amount remains part of the estate governed by the applicable law of succession. The heirs' succession rights were therefore not excluded, and the restraint on disbursal beyond the permissible share was left undisturbed.

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Issues: Whether a nomination under paragraph 61 of the Employees' Provident Funds Scheme, 1952 confers an absolute right on the nominee to exclude the heirs of the deceased member.

Analysis: The nomination clause in the Scheme was construed in the light of the absence of a non obstante provision comparable to section 5(1) of the Provident Funds Act, 1925. The Court held that the phrase "right to receive" in paragraph 61 does not, by itself, extinguish the succession rights of the deceased employee's heirs. The reasoning in respect of a nominee under section 39 of the Insurance Act, 1938, as explained in the decision concerning life insurance nominations, was treated as applicable because the nominee under the Scheme acquires no beneficial title merely by virtue of nomination. The amount, therefore, remains part of the estate and is governed by the applicable law of succession.

Conclusion: A nomination under paragraph 61 does not create an exclusive or absolute right in the nominee against the heirs; the claim of the heirs is not excluded.

Final Conclusion: The revision failed and the order restraining disbursal beyond the permissible share was left undisturbed.

Ratio Decidendi: In the absence of an express overriding provision, a nominee under the provident fund scheme is only entitled to receive the amount and does not acquire beneficial ownership to the exclusion of the legal heirs.

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