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2000 (8) TMI 993 - SC - Companies LawWhether the nominee specified in the National Savings Certificate, on the death of its holder, becomes entitled to the sum due under the certificate to the exclusion of all other persons/ Whether the amount of the certificate can be retained by him for the benefit of the legal heirs of the deceased - is the sole question required to be adjudicated by us in this appeal by special leave? Held that:- Appeal allowed. Any amount paid to the nominee after valid deductions becomes the estate of the deceased. Such an estate devolves upon all persons who are entitled to succession under law, custom or testament of the deceased holder. The law laid down holds the field and is equally applicable to the nominee becoming entitled to the payment of the amount on account of National Savings Certificates received by him under section 6 read with section 7 who in turn is liable to return the amount to those, in whose favour law creates beneficial interest, subject to the provisions of sub-section (2) of section 8. Thus this appeal is allowed with a direction that the succession certificates shall be issued in favour of the respondents in respect of debts detailed in Annexures A and B to the application filed in the Court of the Civil Judge, Senior Division, Thane, subject to their payment of necessary court fees and estate duty certificates.
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