Facts of the case
- X and Y jointly hire a locker from the bank.
- The locker is to be operated jointly by both X and Y.
- Both X and Y have nominated S and W respectively for the locker.
- X dies, and the question arises regarding the further operation of the locker.
Issues in the case
- Can the bank allow access to the locker after the death of X?
- Can the nominee (S) operate the locker solely or jointly with Y?
- What are the legal rights of the surviving hirer (Y) and the nominee (S)?
Principles associated with the case
- In joint locker operations, both hirers must be present for access unless otherwise authorized.
- Upon the death of one hirer (X), the contract of joint operation ceases, and the locker can’t be accessed until proper legal procedure is followed.
- Nomination does not give ownership rights; it only allows the nominee to receive the contents in trust for the legal heirs.
- The bank must ensure proper compliance with RBI guidelines and obtain required documents (like death certificate, indemnity, succession certificate if needed).
- The surviving joint holder (Y) and nominee (S) may be allowed access jointly to inventory the contents, but not unilaterally unless legally authorized.
Judgement
- The bank should not allow S (the nominee of X) to operate the locker independently.
- The locker access must be frozen temporarily and can only be allowed jointly to Y and S for inventory or transfer purposes, subject to proper documentation.
- For full control or removal of contents, Y and/or S must provide legal heirship proof or obtain a succession certificate.
- The bank must act cautiously to avoid liability and follow all KYC, legal, and procedural guidelines.