Statutory nomination under savings certificates law gives payment rights, but succession rights still govern the deceased's estate.

Statutory nomination under the Government Savings Certificates Act entitles the nominee to receive payment and gives the payer a valid discharge, but it does not transfer absolute beneficial ownership. The scheme is intended to avoid delay and expense in payment, while preserving the rights of the executor, administrator, or legal representative to claim the amount after lawful debts and demands are satisfied. The amount received by the nominee therefore remains part of the deceased's estate and is subject to the law of succession.

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Issues: Whether the nominee under the Government Savings Certificates Act, 1959, becomes the beneficial owner of the amount payable on the death of the holder to the exclusion of the legal heirs, or merely a recipient who holds the amount for the persons entitled under the law of succession.

Analysis: Section 6 provides that on the death of the holder the nominee is entitled to receive payment, and section 7 directs payment to the nominee. However, section 8(1) gives the payer a full discharge only, while section 8(2) preserves the right of the executor, administrator, or legal representative to recover from the nominee the amount remaining after lawful debts and demands are satisfied. The scheme of the Act shows that nomination is intended to avoid delay and expense in payment, not to alter the devolution of property. The amount received by the nominee therefore forms part of the estate of the deceased and remains subject to the law of succession.

Conclusion: The nominee has only the right to receive payment and does not acquire absolute beneficial ownership to the exclusion of the legal heirs. The amount is held subject to succession rights, after permissible deductions.

Ratio Decidendi: A statutory nomination under the Government Savings Certificates Act confers a right to receive payment and obtain a valid discharge, but does not by itself divest the estate or override the law of succession.

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