Nomination does not override succession; nominee may receive assets but holds them subject to heirs' rights.

Nomination under the Companies Act, the Depositories Act and similar enactments was held to secure valid discharge to the company or depository on payment or transmission, but not to create beneficial ownership in the nominee or displace succession rights. The nominee may receive the asset, yet holds it subject to the rights of heirs or legatees under the applicable succession law. The earlier contrary view was treated as per incuriam because it overlooked binding Supreme Court and High Court authority. The settled position confirmed that nomination is not a third mode of succession and does not vest exclusive title in the nominee.

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Issues: Whether a nomination under the Companies Act, the Depositories Act and similar enactments confers beneficial ownership on the nominee to the exclusion of heirs or legatees, and whether the contrary view taken in the earlier decision was per incuriam.

Analysis: The statutory scheme was read in context and in light of binding precedent. The provisions governing nomination were held to be designed to afford the company or depository a valid discharge upon payment or transmission, and not to create a third mode of succession or to alter the law of succession. The Court relied on the consistent line of authority holding that a nominee may receive the property or money, but holds it subject to the rights of persons entitled under the applicable succession law. The earlier contrary view was found to have overlooked binding decisions of the Supreme Court and of this Court, and was therefore inconsistent with the settled legal position.

Conclusion: Nomination does not confer beneficial ownership to the exclusion of heirs or legatees; the nominee holds in a fiduciary capacity and the earlier contrary decision was per incuriam.

Final Conclusion: The question of law was answered against the proposition that nomination displaces succession, and in support of the view that the nominee's role is limited to receiving the property with the succession rights of others remaining intact.

Ratio Decidendi: A nomination under these statutes secures discharge to the institution but does not override the law of succession or vest beneficial title in the nominee.

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